Online Trading: Great for the Whole Family
Trading stocks and bonds used to be reserved for the incredibly wealthy, the elite and highly educated. These days everyone can buy and sell on the world markets, especially now that buying and selling stock and other financial instruments online has become so easy. The internet truly is a blessed invention. Before you had to have a live, in-the-flesh stock broker, and this could be quite expensive, and you never knew if you were getting ripped off. These days it is easy to take stocks and investments into your own hands online, even with little start-up capital. There is no reason to feel excluded from the world of stock investment when it is so easy to join in. Since my husband and I have started online trading we’ve gotten the kids involved as well.
We gave them each $500 to start with, and coached them through the steps of opening an online account and choosing how and when to invest their money. They were so excited with their first investments. Our daughter chose a bean bag furniture rental company and our son chose a company producing interactive online video games. Now they are whizzes and can do so much on their own! They have been learning so much about the stock market, economics, and the financial world. Simultaneously the experience is also helping to teach them the value of money, how easily it comes and goes, how you have to be attentive to your investments, and the benefit of research. There are many different online trading companies to consider. First and foremost, make sure you choose a reputable company which is a member of the SIPC (Securities Investor Protection Corporation) or other similar organization.
There are many organizations that provide helpful information such as: The Securities and Exchange Commission, The National Association of Securities Dealers, The North American Securities Administration Association, and the Investing Online Resource Center. If you are a more advanced investor you may want to choose a company which offers more than just stock trading. Many companies offer access to commodities trading, forex trading, day trading, futures trading, and options trading, often all from one account. Many online trading companies offer live customer service and frequent newsletters with information and tips about the market. This is especially helpful for the kids. How frequently you want to trade also plays a role in your decision. Some companies charge for inactive accounts while others charge higher fees for transactions, so it is important to match your needs with the companies’ policies. I feel this has been a truly invaluable experience for my kids and wanted to encourage others to empower their children to understand the workings of these financial systems at an early age. Learning to make, lose, spend and save your own money at a young age really helps kids prepare for the financial realm they will enter all too soon. Online investing is good for you and is a great way to give them a valuable hands-on experience with finance.