TIPS & FACTS OF ONLINE TRADING

Faster Internet connections along with the ubiquity of personal computers allow an increasing number of investors to manage their finances online, at virtually any hour of the day or night. While online trading can be a “hands-on” learning experience for investors, it may not be appropriate for everyone. Whether you manage your investments on your own via the Internet or by working in person with a broker or investment adviser, it is essential that you know what types of securities you are purchasing, how they meet your investment goals, and the risks associated with each investment.


Tips for on line investers:
-------------------------------------------
The following tips were developed by the North American Securities Administrators Association, Inc. to educate investors and to help them think carefully about online investing.

Before beginning an online investment program, be sure to:

Understand that most likely you are not linked directly to the market through your home computer and that the click of your mouse does not instantly execute trades or cancel orders.

Determine if the stock quotes and account updates you receive are real-time or delayed.

Check the on-line broker’s ability to get the best price for investors. Most brokerage firms provide this information on their website.

Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.

Obtain information about entering and canceling orders (market, limit, and stop loss), and the details and risks of margin accounts (borrowing to buy stocks).

Get information from the firm about significant website outages, delays, and other interruptions that may affect your ability to execute trades. Make sure that the firm has an alternative way to execute trades.

Review the firm’s privacy and security policies. Determine if your name will be used for mailing lists or other promotional activities by the firm or any other party.

Receive clear information about sales commissions, transaction fees, and conditions that apply to any advertised discount on commissions.

Know how to contact a customer service representative if problems occur. Request prompt attention and fair consideration. Be sure to keep good records to substantiate any problems that may occur.

Contact your local security division to verify the registration status and disciplinary history (if any) of the online brokerage firm, or to file a complaint, if appropriate.