There are several important things you should know before you buy shares. While there is an obvious trend toward online brokers, a lot of people lose a lot of money that way. Though trading securities is probably not a science, it does require a great deal of experience. At the very least, it is important to know the basic fees.

The most common fee is called the dealing cost, which is how much a client will be asked to pay for buying or selling stock. As a general rule, dealing costs are cheaper the less contact you have with an actual human being. For example, if you place trades on your own on the internet, you will probably only pay between 6 and 12 pounds per 100 shares bought or sold.

Next we have company management administrative charges. These fees are typically assessed at the end of a quarter or every three months. Once again, these costs vary depending on the amount of contact a client has with a broker.

Where to begin? It really does depend on your level of experience. If you have never traded securities before and you don't know much about the stock market, we strongly suggest you start with a full-service broker. Then after a few months, you might try making a few trades on your own.

Trading stocks online without experience is a recipe for disaster. Trading your own money is a stressful experience that can lead to bad decision making, which is why it is best to begin with a broker. Not only do they know what they're doing, but they also know about risk and what stocks are right for their clients. Trust us: earning a steady income on stocks is much safer and more reliable than following some stock tip you got at the office.