Online Trading What It Is, Meaning | How to get started

Welcome dear readers of Money Beng, if you are here it is because you do not yet know the meaning of online trading or maybe you would like to start trading without risk, that’s why we have created this article in which you will find everything you need on how start with online trading.

Online trading meaning

Online trading literally means online trading, but in this case when we hear about people trading we refer to the trading of CFDs, (Contract for Difference).

CFDs are nothing more than derivative contracts, that is, based on the value of indices, shares, government bonds and so on.

Each of these publicly traded financial assets clearly has a market price that rises and falls according to different factors affecting the financial markets.

When trading with CFDs, therefore, we do not buy real shares of a company to give an example, but only a contract where the purchase or sale price and current market value are indicated, and then close it at the best time to have the possibility to make a profit, but it’s not so easy, take care to the capital loss, cause of the leverage you could lose your capital fastly, if you’re not a professional you should not start to invest, especially if you can not afford to invest your money.

Online trading what it is

Online trading is therefore a form of investment based on CFDs, which are traded through online trading platforms made available by the largest financial brokers.

To access these applications you must be of age and you need a username, password and verification of your identity.

Usually at the first access the broker asks for some information on your level of expertise in the sector, do not worry about answering in the wrong way, this only serves to check your level and set the financial leverage which we will talk about later.

Online trading demo

How to get started in online trading without risk? To answer this question, every broker, at least the most important and serious ones, have made a demo account available to users within their platforms.

The demo account allows you to practice online with virtual and non-real money, so that you can acquire the skills to operate in the financial markets and then start investing real money by switching the account.

The advantage of the demo account of the trading platforms is that it perfectly simulates a real account, the market prices are real, and it almost feels like you are actually investing, even if we are not really doing it.

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Online forex trading what it is

As for the forex trading which is very often heard on the web, it is nothing more than the trading of currencies, it is therefore a question of trading with currency pairs.

Trading currencies is highly speculative for the day trader, or those who carry out financial transactions that are opened and closed within the same day.

In fact, the extreme volatility of some currency pairs allows you to make investments that can be closed within 24 hours, in profit or loss, CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage especially if you’re not a professional.

Online trading best platforms

As we said for trading, brokers provide platforms that can be accessed with credentials, the best platforms at least in our opinion are essentially two.

PLUS500, a now historic company in the field of CFD service.

Plus500CY Ltd authorized & regulated by CySEC, that is the European supervisory authority on the activity of brokers and their seriousness, moreover Plus500 is also registered by the CONSOB in Italy supervisory authority of the financial markets for the safety of savings and investments of citizens.

The second best trading platform is clearly eToro, the first financial broker to introduce copy trading.

What is eToro copy trading

Copy trading, as the word itself says, consists in emulating the trading operations of professional traders.

By subscribing to the eToro platform it will therefore be possible for you to find the best traders and simulate their operations with clicks, this allows you to get the same profits as the most experienced traders even if you have no experience.

But be careful, because even professionals can make mistakes, we also remind you that any form of investment is not without risks.

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Online trading testimonials and reviews

We personally have tried both applications and we can reassure you about the seriousness of these two brokers, which otherwise would not have been authorized by Consob.

In our opinion Plus500 remains one of the best trading platform, because it is very intuitive and allows even a novice to start trading online only with the demo account.

The platform is simple to use, fast and advanced.

When you get profits from your trading operations, the money really arrives, usually after about a week, but beware that you must verify your identity and residence to receive payments. On the other hand, you can also lose money and be able to withdraw your remaining balance, if any in this case.

eToro tax statement

As you can well imagine, not even online trading escapes the watchful eyes of the state, which is why, in the case of high income you will be obliged to declare everything.

Opening the VAT number with online trading is not mandatory, however the declared proceeds will be subject to 26% tax.

Be careful because you risk very high fines in the case of checks by the authorities.

Is it possible to live on online trading?

At this point of the guide, you may wonder if it is really possible to make trading a job. The answer to this question is certainly yes, but with the risks associated with any business activity.

This means that it is not possible overnight to become an expert trader, but if you follow training courses you spend several months practicing on demo accounts and study enough then it could be possible.

The only way to do this is not to be guided by emotions, you don’t have to beat losses, because in any business there are losses and revenues, the important thing is that at the end of the month the revenues are greater than the losses.

Furthermore, there are testimonies of people who have already succeeded in this goal and were therefore able to stop working thanks to trading.

Thank you for being with us, we hope we have been of help with this short guide on online trading, if you found it interesting, share it with your friends via the social buttons you find below, see you soon and good continuation on our site.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Money Beng, The Editors



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