The amount of people who want to trade stocks online has risen dramatically in recent years. Ever since the internet phenomenon began gathering pace, online stock brokers such as TradeZero began popping up all over the place making it easier than ever for ordinary people to get involved in day trading. The COVID pandemic and stocks like $GME and $AMC accentuated this scenario to the point where it seemed like everyone was in on the action. Despite all of this mass appeal, day trading can be very daunting at first. Wanting in on the action and knowing how to go about it are two different things. In this article we break down the basics about how to learn to trade stocks online and specifically what to look out for when choosing an online stock broker, including finding the right trading software and the importance of a commission free broker.

Opening A Brokerage Account
The first step on the road to trade stocks online is to open a brokerage account with an online stock broker. As stated above, there are many online stock brokers to choose from. It is imperative to choose the one that will suit you best and there are many factors to consider when making this choice. Finding the broker with the best trading software or best trading platform will influence the day trader’s decision. Also, looking for a commission free broker is often a popular choice.

Minimum Deposit Requirements
Because most new day traders will start out with a small account, it is important to pick an online stock broker that not only offers the best trading software, but that also doesn’t curtail new accounts with minimum deposit requirements. TradeZero is one of the best, commission free, online brokers in this regard by offering new day traders the opportunity to open a brokerage account with low minimum deposit requirements. This means that new day traders who want to gradually feel their way with how to trade stocks online, can do so without risking too much initial capital.

Commission Free Trading
When a day trader buys or short sells shares in a stock, a commission fee will be paid upon opening the position and another commission fee will be paid upon closing the position. Depending on the number of shares bought, these commission fees can add up quite quickly. A new day trader needs to make trades in order to learn about the markets, yet these mounting commission fees can be detrimental to the small account. It is therefore best to look for an online stock broker such as TradeZero that offers commission free trading. This is a huge benefit for new day traders who want to trade stocks online. It is worth noting that commission free trading still does include some transactional costs but overall trading costs may be reduced significantly when a trader does not have to pay commission.

Online Trading Platforms
Commission free trading is a major advantage, but it is also important that the chosen online trading broker has a trading platform that is user friendly and suits the day trader’s personal needs. TradeZero actually has four options to choose from so as to cater for the needs of all day traders who want to trade stocks online.

  • ZeroMobile is perfect for both beginner traders learning the ropes and those with more experience who are on the move and often away from their desktop trading software.

  • ZeroFree is a free, browser based trading system that may be popular with newer or intermediate traders.

  • ZeroWeb is an incredibly efficient and user-friendly online stock trading software suitable for traders of all levels.

  • ZeroPro is a state of the art, dynamic and feature rich online stock trading software. The charting, customizable windows and ability to save multiple layouts will help take your trading to the next level. It really doesn’t get any better than ZeroPro.

The Availability of Short Selling
There are two ways to trade stocks online. To explain it in simple terms, if a day trader thinks a stock will go up they will use their trading software to buy shares of that stock and hope to sell those shares at a higher price. This is called going long. The opposite of this is short selling. Short selling is when a day trader thinks the stock will go down and so borrows shares of the stock to sell. An issue with short selling is that it is often very hard to borrow shares of some stocks due to lack of supply. For certain stocks, most online trading brokers simply will not have any shares to borrow. This means that the day trader can not short the stock. This can be very frustrating and many good trading opportunities can be missed.

TradeZero prides itself not only on being able to provide shares to locate on many of these hard to borrow stocks, but also on making these shares available to borrow at extremely competitive prices. Without question, TradeZero is one of the very best online trading brokers out there for short selling.

Conclusion
Day trading has become incredibly popular in recent years. However, getting involved to learn to trade stocks online can be daunting at first. It is important for new day traders to choose an online trading broker that caters to their needs. TradeZero offers one of the most competitive package available with low minimum deposit requirements, commission free trading, four different online trading platforms to choose from and the ability to short sell with ease due to availability of hard to borrow stocks at affordable prices.

Sources
TradeZero - Homepage (August 21, 2022)
https://www.tradezero.ca

TradeZero – ZeroPro (August 21, 2022)
https://www.tradezero.ca/zeropro

TradeZero – ZeroFree (August 21, 2022)
https://www.tradezero.ca/zerofree

TradeZero - ZeroWeb (August 21, 2022)
https://www.tradezero.ca/zeroweb

TradeZero – ZeroMobile (August 21, 2022)
https://www.tradezero.ca/zeromobile

DISCLAIMER
This content (“Content”) is produced by John Maher. The Content represents only the views and opinions of Mr. Maher. Mr. Maher’s trading experiences and accomplishments are unique, and your trading results may vary substantially. TradeZero does not endorse the Content and makes no representations or warranties with respect to the accuracy of the Content or information available through any linked third party sites. The Content has been made available for informational and educational purposes only and should not be considered trading or investment advice or a recommendation as to any security. Trading securities can involve high risk and potential loss of funds. Mr. Maher is compensated by TradeZero for producing the Content and may also receive compensation for customers he introduces to TradeZero.

TradeZero provides self-directed brokerage accounts to customers through its operating affiliates: TradeZero America, Inc., a registered broker-dealer and a member of FINRA and SIPC; TradeZero Inc., a dealer registered with the Securities Commission of the Bahamas; and TradeZero Canada Securities ULC, an IIROC member firm and member of CIPF.