Online Stock Trading Companies

Online stock trading company: an overview

Only a few years ago online stock trading companies were practically unheard of. If you wanted to discuss your portfolio with a broker, you had to find the time to visit his office and contemplate market performance over a cup of coffee-or five. These days however, the fast moving world of modern technology has seen the personal touch more or less becoming a thing of the past. Major firms worldwide have all bought into dot com convenience and the internet is flooded with online trading companies offering a variety of services.

Online trading companies make their profits by operating as links between individual investors and leading markets such as the NASDAQ and the NYSE. An individual trader opens an account with a company of their choice and instructs the company to purchase specific shares on their behalf. Smaller companies offer discounted services, basic portfolio management and up to date market information, while larger companies usually provide more extensive services such as portable Bluetooth dealing, trading software and combined banking and trading platforms.

Larger online trading firms may provide more extensive services, but they also usually charge far more commission for their expertise. If you are an occasional trader or are looking to only trade small amounts of money, it may be worth your while to stick to a smaller company and take more responsibility for managing your own account. Also look for a company that uses advanced checking software. This software will prevent you from suffering extensive losses by checking for inconsistent trading patterns and making sure that you do not try to trade beyond your means or trade in shares that have been suspended.

The following is a list of ten of the major online stock trading companies currently operating on the Internet:

GCI Financial Limited: (www.gcitrading.com) one of the largest online stock trading companies. Deals in commodities, securities, futures, options and shares.

TD Waterhouse: (www.tdwaterhouse.ca) a stock broking company with a customer base of over two million.

Charles Schwab: (www.schwab.com) America 's market leader. Offer trading in options, treasuries, stocks and mutual funds. Provides research and real time quotes.

Merrill Lynch: (www.ml.com) a leading online trading and investment bank. The company specializes in management and advice and has a client base of over 1.3 trillion.

Knight: (www.knight.com) biggest buyer and seller of shares on the NASDAQ exchange market.

E*Trade: (etrade.com) another big player offering up to date market information, portfolio tracking, analysis tools and virtual demo trading.

Waterhouse webBroker: (tdwaterhouse.ca) a highly informative online trading that offers market information and charts, free quotes and around the clock support from a real broker.