The Online Investing AI Blog

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It sure sounds ominous: Dark Pools and Dark Pools of Liquidity are in the headlines frequently now. The term makes it sound like they’re nefarious forms of finance, but that depends on what camp you’re in.

And, to some extent, how much money and connections you have.

Dark pools aren’t necessarily evil. You don’t need to wear a mask and have Stormtroopers to master them. They’re simply connection networks that provide liquidity that are not displayed on order books.

Big investors and institutional investors say this allows them to enter or exit positions without revealing themselves to the market.

Some say that’s good. Others say it’s not fair.

Read more…

Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI, US Economy broker, dark pools, dark pools of liquidity, liquidity, stock market

If you’re considering trading online, your best friend–and your worst enemy–is your broker.

Unnecessary fees and poor performance can squeeze your profits and magnify your losses. Here are a few things that you should consider when your trading online, whether it’s trading Forex online, trading stocks online, or using an automated trading system to trade online.

Spreads

If you trade frequently, you should watch the spreads. The spread is the difference between what you offer for the stock and what the seller is willing to part with. In most cases, the broker keeps the spread, or at least a portion of the spread.

You want to make sure the spreads are tight, so that you keep more of your money. 

Security

Obviously, you want to make sure your money is safe from fraud and theft, but identity theft is also a concern. You can search for negative reviews and make sure the broker you choose isn’t a “fly by night” outfit.

Convenience

Make sure your broker works in ways that are comfortable and convenient for you. Make sure they take online payments, for example.

Add-ons and Leverage

Good brokers offer extra protection for the investor in services such as stop-loss. Leverage–letting you increase the potential of your position–is another add-on service that you might be interested in. Some brokers offer 200:1 leverage, or more.

Another brokerage service is high-tech charting and portfoilo management capabilities.

Extra Charges

With add-on features and services com add-on charges. Some unscrupulous brokers have low flat fees or spread charges and then make up for them with additional charges.

Trading Amounts

Some brokers require large balances to begin trading. This puts trading out of reach of most self-directed traders and investors. However, you can find brokers who allow you to open balances for as little as $100.

Tip: Search through the internet for reviews of potential brokers. Check for testimonials and complaints. People LOVE to complain. (See, I’m actually complaining about people complaining.)

Check out:

Interactive Traders

Zecco

Sogo Trade

Business Strategy, Investing, Online Investing AI broker, brokerage, how to, online, online investing, security