Advice for Retirees Thinking of Trying Their Hand at Online Trading

Written by Kim Dawkins

If you do an internet search for online brokers, the number of search results returned is staggering. Choosing the best broker from those many options can be a daunting task. In order to separate reputable brokers from those with shady dealings, and strong ones from the weak, we have a series of steps to follow. Read on to learn more.

What To Watch Out For

1. Cost

The first on the list of important considerations is cost. The bottom line is high fees and commissions can lead to decreased returns. Keep in mind that different online brokers charge different fees for trading options, bonds, CDs, mutual funds and other financial markets. When trading mutual funds and ETFs, take into account the expense ratio. And watch out for the possibility of account service fees, maintenance fees, inactivity fees and other similar costs.

2. Research and Education Tools

Beginner investors can benefit from research and education tools provided by online brokers. These resources comprise a wide range of tutorials, reports, and other information. They help to make informed decisions about online trading and investment. There are several online investment companies out there like CMC Markets that provide in-depth research and education tools.

3. Customer Service

What if you need assistance in placing trades? What happens if there is a problem with the trading platform after placing your order? What if you have other questions? Quality, timely customer service is important when you have issues you need addressed. Online brokers with good customer service can be important in your online trading endeavors.

How To Pick A Good Online Broker

Picking the right online broker comes down to your preferences and priorities. Some online investors are willing to pay higher fees and commissions for a state-of-the-art platform while other take cost as the determining factor. Here are some areas to consider when picking your online broker:

1. Pay attention to account minimums.

The amount you want to invest in various financial markets may slim down your choices. A good online broker allows you to open an account with an amount you are comfortable with. Don’t get pressured into investing more than you are able and willing to.

2. Choose brokers with lower fees.

You won’t be able to avoid account fees completely, but with some careful research you can minimize them. Many online brokers charge a fee for closing your account or transferring out funds. If you are transferring funds to another broker, you may consider companies that reimburse some transfer fees.

3. Consider your trading style and technology needs.

Choose online brokers that offer the investment opportunities you want at the most reasonable price. If you are a beginner online trader, you may not plan to trade frequently. If this is the case, choose online brokers that don’t charge inactivity fees. Consider companies that offer technological tools to help make your online trading endeavors easier.

4. Look at ratings and customer service.

Take a close look at the ratings and customer service if you want to pick a good online broker. There are several review sites that offer comprehensive broker ratings that are objective and based on factors that matter most to consumers. These factors include, but are not limited to customer service, commissions, account minimums and fees.

Online Trading Scams

1. Hacking into your trading accounts

There are scammers out there with knowledge and technology to hack into your trading accounts by stealing your username and password. Once they have control of your account, they pretend to be you, able to make trades without your knowledge and generate huge profit for themselves. Secure password selection and management is something we all need to adopt as a part of doing business on line.

2. Email hacking

Some scammers may steal your email passwords which they use to access your email. Once they have access to your compromised email account, they might communicate with your broker to create a fake story to show why you need funds released.

How To Avoid Being Scammed

• Ensure your anti-spyware and anti-virus software are up-to-date.

• Use secure passwords that are difficult to guess, ones comprised of a mix of characters, numbers and symbols..

• Avoid using public computers or public Wi-Fi to log in to your accounts.

• Avoid public domain email address when you want to communicate trading instructions.

• Never save log-in details online or disclose them to anyone including your broker.

• Always monitor your online brokerage account.

• Regularly check trade confirmations provided by your online brokerage firm.

 

How You Can Bring Your Dream Retirement Plan To Life

Written by Samantha Jones

Many planning to retire have a good idea of what their dream retirement will look like. However, not everyone ends up with a reality that matches their dreams. Often, this is due to poor planning. It is not uncommon for a future retiree to spend less time planning for retirement than for an extended vacation. Anybody can bring their dream retirement plan to life, you just need to have a plan and stay focused! Use this guide to get you started.

Set Your Vision

The first thing you need to do is set out your vision for the retirement you dream of. Try to plan in as much detail as you can. Do you want to live in a modest cabin by the lake? Or perhaps you’d rather live in luxury in Sicily? Sicily is a very popular choice for those looking to move abroad after retirement. Picture your dream retirement in every little detail. That takes care of step number one. But having a vision without a plan or any real idea of how to achieve it is pointless.

Come Up With A Plan To Achieve Your Vision

Now it’s time to come up with a plan to achieve your vision. Outline the things you can do to make your dreams a reality. Usually, this boils down to saving money and accumulating as much as possible. You may want to speak with a financial advisor to help you figure out what you can do to put more money away. While you are still working you are best able to make changes and sacrifices that will allow you to live the retired life you want. Cut back today to save for tomorrow. You can find equity in your home. There are plenty of options and every little bit helps. The sooner you get to work on your plan, the sooner you can make your retirement a reality.

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Save A Small Amount Every Day And Forget About It

Making your dream retirement a reality will depend largely on how much money you can accumulate. The more you put away, the better the retirement you’ll be able to have. However, you need not feel overwhelmed by this news. You don’t need to put extraordinary amounts of your hard earned money away each week, or even each month to make it happen. By simply saving a small amount each day, usually what you’d save on a coffee, in 20 years you can build an impressive nest egg. This is why the sooner you start, the better. If you are able to save for a further 10 years, and even 20 years, you’ll be on your way to making your dream retirement a reality. It could be as easy as swapping to a cheaper brand or cutting back on your coffee consumption or taking a more economical vacation. Doing something small could mean a much brighter future for you.

Don’t Get Your Wants And Needs Mixed Up

Make sure that along the way you don’t confuse what you want with what you need. Stay out of debt, especially when it comes to things you do not really need like a new car or new furniture or elaborate vacations. Would you rather pay a finance payment each month for a car or have that money tucked away in your retirement fund? You’d be better off buying a cheaper car outright and putting the rest in your savings. Let your nest egg grow while you drive what you have even though it may not be the most glamorous.