Beware Of Fake Brokers
Posted by admin on December 1, 2007 in Finance :: Trading / Investing
To start trading shares online, you need to set up an account with a broker. First thing to know is that all brokers charge a certain fee for every deal you order them to make. When choosing a broker, beware of the ones claiming 'No Commissions', 'Commission Free' etc. Commission and financing charges are built into the spread, except for daily rolling bets where the finance is applied daily. So it's of great importance to compare the Spreads. What may at first appear to be cheap online share trading might actually end up costing you much more with bad executions. The Companies highlighting they do not charge Commission may have added 2 pence/cent to both sides of the real share price. If the real price is 100 and their spread is 98-102 that would be equivalent to charging commission of 2% per trade.
