Investing on the stock exchange: answers to the 5 most popular questions

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Is it true that any brokerage company only cheats for money? What happens if the broker goes bankrupt, where will my money go? What start-up capital is needed to start trading on the exchange? How not to run into scammers? In this article, we decided to answer the hottest questions from users about trading on the exchange.

We have talked a couple of times about the broker company NETTRADER and their service. Naturally, in the comments, many of our readers wrote that all this is a scam for money, nothing more.

NETTRADER representatives answered a lot of questions and objections, explained the principles of brokerage companies and the difference between the right brokers and unscrupulous ones who profit from a simple human desire to make money quickly.

Based on these explanations and other NETTRADER advice, we have compiled this article. We will answer users' questions and tell you how to distinguish a real broker from a fraudster, and then we will also show you how the Tradernet.ru service looks like and how to use it.

How does trading on the exchange generally take place?

The first question that probably interests those who are thinking about trading on the stock exchange: why do you need a broker? Why should I perform transactions only through it? Is it possible to register directly on the exchange, buy and sell shares as an individual?

No. The law prohibits individuals from independently making transactions on the exchange. Necessarily need an intermediary - a legal entity with a license for brokerage activities. This can be a management organization, a bank or a brokerage company.

The functions of the exchange include the organization of trading in securities. There is nothing complicated in the process of buying and selling shares: you need to give the broker an order by phone or through a program that is installed on a computer or runs in a browser.

Having received the order, the broker displays it on the stock exchange in a few seconds, and there the deal awaits a counterparty - a private person or a company who will sell you shares or buy yours.

But in order to understand which stocks to buy and sell, you need to be able to navigate the financial situation and even have some flair. If it seems to you that you cannot yet plunge headlong into the study of this issue, but are ready to pay those who already understand this, contact analysts for help: they will compile a portfolio, help and give recommendations.

However, you can independently master the nuances of stock trading and test your trading skills by opening. Everything is real, only a million virtual money is at your disposal.

Of course, sand is not an important substitute for oats, as Bill said in The Leader of the Redskins. Even if your demo account is swollen with unprecedented profits, this does not mean that you will be as successful in the real world. You will also need to pay the broker's commission and income tax. In addition, when you invest real money, the sensations from what is happening will be much sharper - you may miss a good deal, because you will be scared, for example.

But thanks to educational trading, you will learn how to navigate the trading terminal, which is very important.

Do I need an economic education to learn how to trade stocks on the stock exchange?

We will not loudly declare that anyone who at least knows how to read can make money on promotions, but specialized education is not required. At least no one will ask you for a diploma, and you can learn to understand financial processes on your own.

Before entering your money into the system, it is worth practicing on, reading articles, watching webinars, etc. NETTRADER even has its own. And every morning before the opening of the exchange, the company's employees organize a 15-minute webinar where they discuss the economic situation.

You need to learn, delve into, understand. Perhaps it will take you more than one month. But are there any professions that can be mastered in a couple of days?

The stock exchange is not a casino where, by pulling the lever of the machine, you can suddenly lose everything or, on the contrary, get rich. An exchange is a good way to invest money plus a lot of analytical work.

If you want to feel like a wolf from Wall Street, first become at least a little bit, gain experience, knowledge, understanding of the internal processes of trading on the stock exchange, study. Then you can hardly lose a million in a couple of days.

To start trading, you need a large start-up capital. How can I earn something with my pennies?

The minimum deposit with NETTRADER is 3,000 rubles. But this, of course, is not enough to buy decent shares. For 3,000 you will most likely be able to buy out a lot of one company. Such investments will surely bring a lot of nerves and a minimum of profit, because the portfolio needs to be diversified - to buy shares of different companies. And yet, it's up to you to decide how much you are willing to invest.

NETTRADER has an interesting case on this topic. Vladimir Ryazantsev, who is now 47 years old, decided to independently take care of savings for retirement and created a "personal pension fund" with the help of NETTRADER.

Interestingly, he started just with a deposit of 3,000 rubles and now he replenishes his account with 3,000 rubles a month. If he simply put this money on the card, now he would have saved 36,000 rubles. A bank deposit would bring very little profit over the year. Now Vladimir has almost 54,000 rubles on his account - quite a solid increase.

You can watch Vladimir Ryazantsev, read him, communicate with him through the Tradernet.ru messaging system.

Advice on choosing the size of the start-up capital

Invest free money. This means that you do not need to invest the amount that you have saved up for treatment, moving, buying a car or anything else you need in the near future, hoping to double it and buy something better.

Invest an amount that you can do without in the next 5 years. The account can be constantly replenished. Therefore, even starting with a minimum deposit, in the end you can bring it to the point with which you can buy shares of reputable companies and get already impressive profits.

How to choose a bona fide broker?

So, without a broker, you can't get on the stock exchange. Therefore, you need to find a conscientious person with an acceptable commission. But how do you know that a site can be trusted? Let's go in order.

1. Check licenses

The broker's activities must be regulated by law, which means that he must have:

• brokerage license;
• dealer license;
• depository license;
• a license to carry out activities for the management of securities.

The work of brokers is regulated by the Financial Markets Service of the Bank of Russia, and it issues licenses. By the way, if you see the FFMS in the license - this is also a real broker, he just received licenses until 2013, when they were issued by the Federal Financial Markets Service (FFMS).

The NETTRADER group of companies includes Russian, Ukrainian and European brokers. Each of them has licenses from their regulators.

2. Check if the company has access to the exchange

There are so-called kitchens - intermediaries who generally do not perform transactions on the exchange at the request of clients. At the same time, the client gets a sense of the reality of what is happening. He sees quotes on the site, submits orders through the terminal, makes a profit or incurs losses. Only here the values of quotations may be far from real, and the broker itself acts as a counterparty.

At the same time, it is beneficial for pseudo-brokers to incur losses, because all the profit that is shown in your personal account is just virtual money, as on a demo account, in reality it does not exist. Kitchen brokers keep the customer's deposit. It is beneficial for them that a person initially deposits a larger amount and quickly spends it on non-existent and failed transactions.

It is beneficial for a real broker that you remain his client for many years and continue to make transactions. From them, he receives a commission (by the way, very modest: tenths of a percent).

Yes, the broker will receive a commission in any case: is your trade profitable or not. But if you spend all your money on failed trades, you will leave. This means that your success is actually beneficial to the broker.

So, we check that the selected brokerage company is admitted to trading. This can be done on the website and on the website.

3. Understand commissions and additional payments

“There are so many numbers that there is simply no energy to study the rules for paying commissions. Trade faster! A million will not work by itself! Oops, here you got caught by typing in a lot of additional and hidden payments in small print.

Carefully study the tariff plans, commissions, withdrawal fees. If you do not understand something, ask a question to a company representative. You must be able to accurately. Do not forget about: citizens of the Russian Federation pay 13% of the profit received on the exchange.

NETTRADER has several plans. You can choose a monthly subscription fee of 600 rubles, which includes commissions on transactions in shares and bonds on the Moscow Exchange with a turnover of up to 1,500,000 rubles per calendar month.

You can pay 0, 15% for each completed deal with stocks and bonds. This is convenient if you have purchased securities and want to hold them for a couple of months.

What happens if the broker closes, goes bankrupt, or what happens to him there? Will I lose all the money I invested?

The broker does not own your money and shares, he is only an intermediary between you and the exchange. Accordingly, if the broker closes (for example, his license is revoked), you will transfer your shares from the depository to the account of another broker.

At NETTRADER, clients' money is transferred to exchange settlement organizations: the National Settlement Depository (NSD) or NCC Bank. The law prohibits these organizations from performing any own operations with financial instruments, as well as operations on lending and placing funds.

The rights to clients 'securities are recorded in the depository of NETTRADER, and NETTRADER has a nominee account with the National Settlement Depository, which records the rights to the clients' securities admitted to trading. The depositary is not legally entitled to dispose of clients' securities.

If a broker loses his license, he is obliged to notify clients about this in writing within three days and act according to their instructions: return the money and transfer securities to the account of another broker.

We hope that this article has explained to you the nuances of the exchange and brokerage companies. And if you still have questions, ask them in the comments: NETTRADER specialists will answer them for you. In the video below we show how the trading terminal works on the site.