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Getting Started With a Trading Apps
As a beginner, you may be wondering where to begin in your quest to invest in online trading. Don't worry because this article provides you with some great tips on where to start. The best way is to download one of the common online trading apps from Google Play Store or Apple Store for iPhone users.
Once you download the mobile app, you need to have your bank details and a debit card ready to proceed. You should be having a minimum of one hundred pounds in your bank account. To make your work easier, you should set up your online account with a company you have dealings with before. In case you are completely a beginner with no previous dealings you will not be able to start trading until you receive your password in the post. This is the point you need the one hundred pounds because your selected online dealer will request a deposit of a minimum amount of one hundred pounds. The provider shall offer dealing services via the mobile app that you are working with. Note that a deal may cost you a little more because it is being provided via an app. For example, a company offers charges of £11.97 per trade online and from £14.9 per trade over the phone app.
What do you need to do so that you start trading?
After you have set up your account successfully on the app, you need to start trading and make profits. To start trading, you shall be required to select the stock name that you wish to trade on. Once you make the selection, an indicative price quote in pence per share appears. The next step is choosing the amount of money you wish to spend and the deal. A real-time quote appears on the app and you have a maximum of 15 seconds to execute the transaction. Once you execute the deal the equivalent amount of the transaction is deducted from your online account that you linked to the app. You cannot be able to trade with the amount of money exceeding the total of the amount you deposited with your dealer while setting up your account on your first trade. Every time you trade, the amount is deducted.
Finding the right account for you as a beginner
Hundreds of online stock brokers exist out there. All of them charge different fees for their deals. The minimum cost per deal stands at £10 for UK trades without any extra cost. Major banks such as HSBC and Halifax offer dealings from a minimum of £11.95.
As a beginner, check out for apps of companies that provide minimum charges per trade. Some apps charge as little as 1% on all trades for beginners, but this automatically shoots once you start trading huge sums of money above £1, 000. For real-time trades, you get a trade for as low as £8. If you want to start and go big immediately then look for apps from companies that charge higher fees because you will also enjoy huge profits within a short period.
Do you pay taxes when you trade via an app?
Online trading on stock exchange markets such as CMC markets attracts a 0.5 stamp duty reserve tax on all shares and individual purchases and profits. The same shall apply to you as you trade via an app. Trading through an app doesn't exempt you from being taxed.
Note that, before you start trading, take your time and conduct a viable research about the stock markets and online trading. You need to always assess the market and work to establish when is the right time to do online trading. There is a lot that comes with online trading and using the right App from trusted sources will be a plus. Having adequate information at hand will save you the burden of losing your investment as you learn the trade the hard way. Share investment and online trading is an area with endless information available online. Consider checking out the BBC's market data pages and Citywire. A lot of stock information can be found on Reuters and Yahoo.