Online
Trading
The advent of information technology and the upsurge in
usage of the Internet has created opportunities for many
businesses to be conducted online. Just as there is now
virtual shopping for properties, apparels, to even groceries,
there are also offers for investment productson the Internet.
Indeed, online trading of shares, unit trusts
and other investment products is another innovation now available
globally in the financial markets.
Online
Brokers
In Malaysia, online trading can only be done through licensed
representatives comprising paid dealer's representatives
or remisiers. Orders that are keyed in are not conveyed
directly to the exchanges but go through a brokers front-end
(BFE) system. Check that the broker is licensed by the
Securities Commission and you can check this at www.sc.com.my
Seven Points
Some important points to consider when trading on-line.
1.
Know
the company
2.
Consider
buying on limit orders, not market orders during a fast
moving market
3.
Online
trading is not instantaneous
4.
Confirm
your order or cancellation before proceeding with another
5.
Do
not reveal your password and PIN to anyone else
