How to start speculating in stocks over the Internet?

trading strategy

Stock traders are actively promoting online trading. Stock traders triumphantly report that the number of individual traders has already reached 1000 people. The figure is still more than modest, but Dengi decided to find out whether it is worth breaking into the first ranks of online investors.  MetaTrader 5 is a great stock trading platform and provides very easy to use trading procedures. 

Already 16 brokers offer the opportunity to trade stocks online – over the past six months, their number has grown like an avalanche. Brokers offer to taste the shares of only 25 issuers from the metallurgical, machine-building, energy, oil refining, coke-chemical industries, as well as bank papers (Ukrsotsbank, Forum and Raiffeisen Bank Aval). “In addition, we already have several securities candidates for transfer to the order market (since November 1, four more new issuers have appeared. – Auth.). This happens after the paper is” canceled “on the quotes market,” he reassures Yevgeny Komissarov, Deputy Chairman of the Board of the Ukrainian Exchange. For comparison: on the Russian stock exchanges MICEX and RTS private investors have access to securities of more than 180 issuers.

What you need to start

To get involved in trading, you need not only to sign an agreement with a broker, but also to install a trading platform – QuiK or SmartTrade – on your computer. The investor’s initial costs are low and usually come down to opening a securities account (about UAH 50), a broker’s monthly fee (UAH 100-150 per month) and the minimum amount for starting (UAH 3000-5000), which is required to be deposited into a bank account.

However, it should be borne in mind that in addition to this, the exchange will have to “unfasten” 0.01% (but not more than UAH 400) from the amount for each transaction, 0.1-0.5% to the broker, as well as 0.004-0.02% to the custodian for crediting or writing off securities and funds.

The costs for blocking and unblocking shares (1-2 UAH per operation) or funds (10-15 UAH per operation), for transferring funds for purchased securities (about 10 UAH) will be added. You will also have to spend 20 UAH for crediting / debiting funds to or from the account of the custodian, for their further transfer to the depository.

Having connected, the player will see trading on the exchange online and will be able to place orders himself – to sell and buy the same shares of 25 issuers. As “Dengi” found out, the number of small transactions (from UAH 200 to UAH 5000) on the exchange is quite large. Small investors are clearly playing actively, however, with success or not, it is not yet clear.

Bidding starts at 10 am. From this moment on, you can place orders in the system, conclude transactions with deferred execution, write off money and securities from the account. The trading session itself lasts from 10:30 to 17:00, after which you can enter into transactions with deferred execution. At 17:15 all orders are automatically canceled and the trading day ends. In the system, you can immediately see whether a deal has been completed or not.

It is gratifying that there are no strict restrictions on the amount of transactions – if only the lot size was not less than UAH 200.

We subscribe without looking

Practically none of the companies is already engaged in signing paper contracts, since there is a high risk of untimely certification of securities purchase and sale transactions. Therefore, brokers require an electronic digital signature (EDS), which is analogous to a person’s handwritten signature, relieves bidders from paperwork, ensures the confidentiality of information and identifies the client. You will have to pay 96 UAH for it. in a year.

In order to obtain a signature, you need to contact Open Key Infrastructure CJSC (central office or regional representative office) with a passport, a copy of it, as well as a copy of a certificate of assignment of an identification number and an application for an EDS.

Digital keys are generated independently during the installation of the system and are updated every two years or in the event of a compromise of the EDS. Brokers assure: if you store the secret components of the access key on removable media (such as a USB drive, for example), and do not tell the password to anyone, then the risks for the trader are reduced to zero.



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