Don’t be afraid to DIY with your money

These days, there is a product or a solution for just about any type of investor.

People are becoming more financially aware and taking control of their finances and their hard-earned cash.

Investing is no different. With the right advice you really can do it yourself.

Read: Saving money not always the smartest idea

I’d like to dispel some of the fears around share trading by discussing the benefits of going the DIY route.

Online share trading has become extremely popular and more people are gaining the confidence to trade on their own as opposed to calling their broker.

Technology has made access to markets and trading so efficient and user friendly just about anyone can do it.

I have found that many potential clients have a fear of trading their own account on an online platform mainly because they think it’s too complicated or the potential of making an expensive mistake.

Well, it’s simpler than you think and you don’t need to fear.

Trading online is not rocket science, nor is it difficult to do.

In fact, if you can operate a smart phone, you can operate an online trading platform.

You only really need your broker’s brain, not his fingers.

Brokers are there to offer advice and research.

On that note, choosing the cheapest broker is not always the best thing to do. In the trading game there are many providers but when it comes to fees, you always get what you pay for.

The cost usually reflects the level of service and broker interaction.

Low cost brokers generally supply excellent online trading platforms but some of them are not necessarily focused on offering advice or training.

If you are a novice or new to trading I would suggest paying a little more and using a client-orientated or private client broker because although you are paying more in trading fees, they should include broker interaction, training and mentorship.

In fact, I have heard that some brokers even charge their clients to speak to them on the phone.

You will rarely be able to speak to a broker or get advice.

Low-cost providers are suited to the more experienced trader or investor who makes his own decisions and wants to keep his trading costs low.

The rule of thumb here is that if you need good advice it is worth paying for it.

•  All the tools at your fingertips

There are many platforms out there but even the most basic ones these days offer clients the ability to buy, sell, monitor and manage their portfolios.

Any reputable broker should provide you with a system that not only allows you to trade efficiently, but also provides you with additional research, trading tools and support.

Your broker should still play a big role in your trading activity in terms of offering you research, trade ideas or advice.

Placing an order in the market is the easy part and definitely something you can do yourself.

A basic trading screen gives you the ability to see live pricing on watch lists with bids and offers and additional important securities information that you would not see if you just relied on your broker

•  Make use of demo accounts – it’s free.

Most brokerage houses offer a free demo account to entice potential clients to make use of their services.

This is a really great way to familiarise yourself with their trading system and you can place trades without the risk of making a mistake with your own money.

Make full use of trial periods on offer until you are confident enough to manage your own trades.

•  Take control

Having control of your portfolio is by far the biggest benefit because nobody will pay more attention to your portfolio than you.

Having the control helps you identify which stocks are performing and which are not.

The real advantage comes in when you need to react swiftly.

By pushing the button yourself, you save the critical time it would take to phone your broker.

Trading yourself does not mean you are on your own.

A decent broker should supply you with quality research and analysis to assist you in your trading and investment decisions.

If they don’t, don’t use them.

The point is, you don’t need a broker to push a button.

Happy trading.

Benoni resident Roberto Pietropaolo, or “Robby P”, as he is known in the financial markets, is committed to educating you on financial wellness, investing, and general money matters. He works for Vunani Private Clients as a trader, investor, mentor and tutor. He specialises in trading the short-term derivatives market and longer-term equity or share market.