KB asks: I have just bought software for online trading. Maybe this was a mistake as it could be done through the bank. Do you think that it was a mistake?
Maya replies: Unfortunately many of the companies offering these software packages trade on the fact that few people realise what they can get through their stockbroker.
Most online brokers offer SMS alerts, stop-loss functionality, automatic selling, technical charts as well as research and trading ideas. This makes the software redundant. You probably could have got the same functionality without paying for it upfront.
Another problem is that many people spend the money and then don’t spend the time trading, so the programme is never used. If you sign up with an online broker and trading turns out not to be your thing, you just close the account and there are no upfront costs to recoup.
There are also ways to get free information. Standard Bank’s Online Trading and the JSE offer free seminars. The website www.justonelap.com offers free online tutorials to learn more about investing and trading.
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