ONLINE TRADING AND INVESTMENTS

Welcome to our Online Trading and Investment area. We compare numerous trading platforms for those who are looking to trade in Forex, CFDs, Shares, Futures, and Spread Betting. The internet has made it possible for anyone to trade but it is important to know what you are doing before you start. Check out Trader Training services on Which Way to Pay to help you learn to trade like a pro.

        

Compare Online Trading and Investments Products

Please find information on investment and online trading options available to the individual customer in Australia. Investment and trading products can be applied for and controlled online and are suitable for both casual and serious investors.

Forex Trading

As the largest liquid trading market in the world with an average of over $3 trillion currencies traded daily, the foreign exchange (or forex) trading market has many benefits for the investment trader. Almost anyone can get involved in forex trading, and for beginners it is highly recommended to carry out some research and background work. Another good idea is to start by trading virtual money on a 'demo' forex trading account. This will give you the chance to practise until you feel ready to give real trade a go. Experienced online forex traders are already familiar with risk appetite – and knowing your own level of risk is essential.

CFD Trading

A CFDs (short for 'Contract for Difference') is a type of trading vehicle or tool. A CFD is formed as an agreement to exchange the difference between the opening and closing price of a particular financial asset – hence the contract. With CFD trading there is no set time limit for a contract and positions are generally renewed at the end of each day. If the asset (usually shares or indices) is lower in trading value compared to the original value, then the buyer is in deficit and will have to make the payment. Generally, the buyer is the client and the seller is the brokerage company. CFD trading is known as derivatives trading because the underlying asset is never purchased. A trader is merely speculating on price movements.

Future Trading

Online Future Trading allows the trader to take positions on large-scale commodities without having to raise a large amount of initial capital. By paying an initial margin (usually of between 2 and 10%), the trader can open a Futures Contract. This allows him or her to buy a specified commodity at a specified date in the future. This is set at a “futures price” – in other words, the market trading determined price. Futures Trading is done through a broker who in turn uses a central exchange. These exchanges are tightly regulated by a Government-led regulating body (such as the Australian Securities and Investments Commission (ASIC)). Main commodities commonly traded with future trading are food products such as grains, meat and soya, metals, energy, currencies or services such as interest rates.

Spread Bettings

Financial spread betting is a derivatives trading product, like CFDs – in other words, you do not buy the underlying stocks, you just speculate on where the prices will be at a point in the future. Spread betting trading takes place online. Unlike the UK spread betting in Australia is not tax free.

Using an online trading service, the trader is given a spread on a live underlying market price. Then, the trader can bet on whether this market will go up or down. Profit is made when the trader makes the correct bet, and will earn on the stake multiplied by each move the market makes in the trader's favour. With spread betting when the trader is incorrect, the loss will be made on the stake multiplied by each move the market makes against the trader.

Share Dealing

Share dealing or online trading is good for long term investment. By buying shares in a company, the trader becomes a part owner of that company in a process called share dealing. The size of their stake depends on the amount of shares bought. Shares can rise and fall in value, and the shareholder's clever management of shares brings a profit from either buying or selling shares. If you want to take part in share dealing remember that there are various aspects which will affect share price and value, including market trends and economic climate of a country.

Most people buying and selling shares trade via a stock broker, who in turn uses a central exchange. Using a stock broker is the best and easiest way to trade shares through online trading. Share dealing is a 'high risk' online trading activity, as any trade type, because it can lead to loss of money, but with patience and plenty of analysis and research, share dealing can be a rewarding way to invest.

        


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