Online Investment Services

Before the internet was available to almost everyone, potential investors needed to visit and work with a traditional brick and mortar, storefront brokerage firm, which often charged their customers hefty fees for the privilege of watching and managing their money, design an investment strategy and helping them grow and sustain their wealth. In the last decade or so, on-line investment services, like E-Trade, TD AmeriTrade, and even traditional banks, have made do it yourself investing easier and more cost effective than ever.

Before opening an online investment account, research the price, the level of customer service and client care offered, and how quickly your trades can be excited. When you want to trade stocks on-line, you may need to access your account during non-business hours, so also see if your preferred platform supports an app for your mobile smart phone or tablet. Decide on the level of client care you need. If you are a seasoned and savvy investor, the firms online research resources may be enough to help you make informed decisions. In this case, a very bare bones service is needed. If you are just beginning to invest online, you may feel like you need more hand holding and advice. Look for a firm that offers instant chat or email with their brokers to help you reach your goals.

Another factor to consider is the fee structure of the online firm. Many sites require a minimum balance, an annual or quarterly maintenance fee, and a fee per trade. Some sites require a certain number of trades per month or quarter and your account may be penalized for not meeting this quota. Try to get a handle on your activity level before you open an account, so you are getting the most for your money.

Once you have opened your account, you are ready to trade stocks on line. When you are ready to make a trade, be sure you get a real time market quote. Many online aggregate sites offer a delayed quote, as much as 20 minutes, and that can make a big difference in trading activity. Now, you need to decide between placing a market order or a limit order. A market order trades at the current market price of the stock. A limit order only trades at or better than a price you specify. If the stock doesn’t hit that price, the trade won’t go through.

You should also set up some loss orders, to protect you and your account from large scale losses. When you trade stocks online, you may not have the time to watch the stock closely, so stop orders, stop limit orders, and trailing stop orders, can all be used to stop the bleeding if your stock takes a tumble. Another important thing to note; although you can make online trade orders any time, your trade will only be excited during normal trading hours, and it may take several hours to match up buyers and sellers. When you trade stocks online, you can often cut out the middle man and keep more of your money in your pocket (or account).

Investment options and Investment strategies

There are a large and varied range of investment products, a suitable investment portfolio can be created that will offer the possibility of good returns without excess risk. For the slightly more adventurous investor willing to take a risk for the chance of a higher return, the investment market has interesting possibilities as well.

When looking to build your investment strategy [], there will be some important points to take note before choosing the products that will be right for you.

Depending on the risk level, there will be different investment funds to recommend. There are a number of financial advisers who offer these services but only a few will continually assess the investment markets to ensure that clients money are invested to give them the highest potential for growth.

Generally we have two client types when it comes to investing, those who need and want to generate an income from their investments, and those who are only interested in growth of their investments.

Investing for Growth
After assessing your risk profile, finance experts will give you recommendations based on their continuous research. These recommendations will incorporate all your investment objectives, and will strive to find the correct balance of risk and reward for you. They will also evaluate your investments on an agreed date at least once a year to ensure that your funds are invested in the most opportunistic sectors

Investing for Income
They can also develop an investment portfolio that will minimize your risk, and ensure that you have a guaranteed income from your investments. There are many different investment products that suit income. Finance experts will make sure that you are able to do this in the most tax efficient manner.

Guaranteed Investments
Due to the volatility of investments in the last 5 years, more and more investors prefer to have a guarantee attached to their investments, especially those clients nearing or in retirement. Finance experts should continually analyze the different guaranteed products on the market place, and when questioned, they should offer the products to clients that they believe are the most beneficial to their needs.

In general, risk and reward should go hand in hand. However financial services should quantify the risk associated with all these investment funds. They can recommend investment portfolio and try to minimize the risks where it is possible. Finance experts cannot guarantee performance levels but they can monitor risks.

Saving in Investment Funds
While investment funds are primarily designed to serve those wishing to invest larger amounts as a lump sum, many also facilitate regular contributions through savings schemes. Your financial adviser can advise you on how to access products on a monthly savings basis.

All investments are different, and each comes with its own risks and attributes. Discovering your investment risk profile is the first step towards identifying which types of investments suit you best.