Trading 101: How Online Brokers Work. Why You Need One.
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- Опубликовано: 26 янв 2017
- Trading 101: How Online Brokers Work. Why You Need One.
The Ultimate Broker Guide: claytrader.com/blog/best-onli...
If you want to "get involved" in the stock market in any capacity, then you will need an online broker. Why is this the case? What exactly is an online broker doing for you as a trader or investor that makes them so important? I discuss those topics in depth.
Finding an Online Broker - claytrader.com/blog/best-onli...
How to "Give Orders" (Buy Stocks) - claytrader.com/videos/trading...
Free Guide - The 5 Tools I Use To Find Stocks To Trade: claytrader.com/lp/Free-Guide-...
Enjoy this Free Content? I'm confident you'd enjoy my premium training courses then: claytrader.com/training/
Hear real life trading journeys from "normal" people: The Stock Trading Reality Podcast - claytrader.com/podcast/
The first step to learning day trading is reading books and watching videos! This is the process of gaining knowledge. But remember, just because you read a book on sky diving doesn’t mean you’re ready to jump out of an airplane!. you must work with an advisor
I'll have to disagree. Your plan sets you up for lots of bad information.
Bruh 😂. This is a RE thing. Why you in a broker video about RE if your doing crypto or whatever ?
Books are the past, everything is free online if you look hard enough
@@trashcan7140pretty much…I have over 80 books on my phone . A diverse mix of information & practical education
This was super helpful i really wanna learn how to buy stocks or invest thank you for helping man
This should help too claytrader.com/blog/getting-started/
I just found your channel and I have to say you really explain things quite well and writing on the board really helps as well. Love your stick figures btw☺!! I've been thinking of buying stocks for a while now even though I'm in my 20s, but i don't know anything about stocks, so finding your videos really helps with the learning process. I already subscribed after watching 1 video from you. Can't wait to binge on these videos. Thank you!
After you binge, then check out this link (assuming you continue to enjoy the videos) - claytrader.com/training/
Update ? Please respond it been 6 years ?
Perfect explanation for a total beginner!!
Thanks!!
You're welcome Johnny.
I invested in bit I invested in Bitcoin back in 2019 how do I get possession of my wallet
Claytrader thanks for your very detailed information about brokers things you need be aware of. That inportant information is hard to find. You share it with rest of us nice man
You're welcome. Glad you found it helpful.
You really made it easy to follow and understand. Thank you.
Glad it was helpful!
I really enjoy watching your Videos. Thank you so much for your helpful contributions. Best wish for you.
Thanks for the feedback. Glad you enjoy.
Great video! Really puts the info in perspective.
Thanks, glad it could help.
Just reached halfway into this series. Let's gooo. Long way ahead.
Ps. I know that this course/series is just the cover page of trading knowledge :-)
Hope you enjoy it!
Hey Clay! Thanks for this video. It is really helpful.
Cheers
Thanks man this was very useful to me no cap
Glad it helped
You really a good teacher this is what l wanted thank you
Glad it was helpful!
Can you make a vocabulary video?
Hmmmm... that would be a very long video lol
ClayTrader also i would watch, were on youtube we watch long clips
We'll see what happens.
ClayTrader
awesome insight, and u have a good voice
Thanks.
best teacher out there. great explanation sir.
thank you
Thanks for watching!
Great videos. Im learning to start investing in stocks. Especially right now due to the pandemic I see a lot of stock is down and Im confident it will go up in the future. Also, at least from what I seen on tv, in the past probably like in the 90s there actually was a guy in a suit with his phone taking orders lol.. i laughed with your guy in a suit thing
Thanks for watching!
Edgar Ramirez which online broker are you using?
I dont have one yet. Mostly seeing videos first to learn. I will probably do the paper trading first. And from what i see etrade, schabb, merrill edge seem to be good. I will probably decide between one of those
@@zazak8107 I recommend claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
@clay trader
awesome, i have tried to make blogs, and yours is very interesting and i have shared this content with fiends and Facebook
Thanks, I appreciate you sharing.
Thank you so much my lovely brother may god bless you good man
You too!
Nice video, you explained it really well
Thanks.
I hope you can help me with this one. As I was researching, many of online brokers does not allow opening an account for non U.S. citizens. Do you know some good one that allows or some international one who is verifed and i can rely on? Thank you in advance. Btw great videos.
I give an international broker recommendation here claytrader.com/blog/best-online-stock-broker/
Great video!!
Thanks!
well explained, thank.
You're welcome.
Very helpful lecture Thanks alot
You are most welcome
why stock exchange is not providing stocks to us directly? why can't stock exchange act as a middleman between a buyer and a seller? why stock exchanges are not allowing us to buy stocks directly without a broker?
That would be a question for the stock exchange. I have no idea.
Ganesh Senapathi , exactly... why can't we just be our own broker?
Because u have to confirm the transaction, to make the settlement with cash and shares between you and the other part. Also you must be the custody of the shares that have to keep the electronic file updated mark to market.
I wondered this as well when I first started looking into trading stocks. There are some good reasons though, so I will try to explain the top two as far as I understand them:
1 - Brokers provide liquidity. If you wanted to buy XYZ stock at $100 at 11am today, without a broker, you would need to find someone who wants to sell XYZ company at $100 at the exact same time you want to buy it. For extremely liquid stocks like the FAANG stocks, maybe that wouldn't be a problem, but for a lesser-known company the chances of you finding a counterparty at the exact same price and same time that you want to place an order are pretty slim. A broker, however, lets you buy or sell any security at any time for a near-market or at-market price. They do this by taking the other side of your trade. Meaning, if you go buy XYZ stock at $100, your broker is now short XYZ stock at $100. They become your counterparty. Now the disadvantage to this is that brokers by definition want you to lose money. This creates conflict of interest, as every trade you make with your broker they become your counterparty and thus one of the 4 ways a broker makes money is by you losing money.
2 - Brokers provide security in the same way that an escrow company provides security when you're purchasing a house/business/other large investment. Brokers are certified and regulated companies, and so they mitigate many of the risks that would exist when dealing with other non-regulated people in the broad market.
because the jews need another way to siphon your money before you even play their game.
Do you have a video that explains what all the +and - signs mean and all other symbols?
No. That'd be hard to do because all brokers are different with those smaller details.
Question 1: Can I use one platform and buy stock on different stock exchanges, like, 1 platform, and buy/sell on London stock exchange and Chicago stock exchange? In other words, every platform is connected with one stock exchange only, or you've got one platform, playing on multiple stock exchanges?
Question 2: How many currencies I can operate with, when I'm trading with shares/equities?
Question 3: Why it's so hard to find a platform that operates on the London Stock exchange?
Question 4: I want to buy/sell shares, but find it very difficult to find a list of the companies, listed on any specific Stock exchange? It's a bit of a pain to do a search about it.
Question 5: How to find if an online trading platform is FCA regulated?
Some of the questions may sound stupid, but I just can't seem to find any answers for the last 3 weeks of research on the subject.
This playlist should help claytrader.com/video/trading-101/
Lol ,.... great humor :) Love your Class
Thanks :-)
great explanation ... thanx!
You are welcome!
Hey Claytrader, I got a question, are you a fundamental trader also? or you just focus on the charts.
I'm a fundamental investor, which I outline here - claytrader.com/courses/grow-rich/
Thank you!
You're welcome!
Can you make a video as to how the various new apps like olymp trade and all work.? It'll be really helpful. Great video though.
I have this claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
The plan sounds very operational but thanks for the advice 😃
Any time!
nice!!! please let me know if you have series on swap and commissions
I do not, sorry.
very intertaining about the little guy and his tie
I'm a pretty good artist huh?
Word of advice. Do not try to make your living as an artist. LOL!
A harsh, but true truth lol
can you please make a video to explain what is future and an option and insentric value...??
Here ya go claytrader.com/courses/advanced-options-strategies-explained/
Online trading is easy and best benefit is it is more transparent.
Not sure about "easy". I guess that depends how you are defining "trading".
Really thanks
You're welcome.
I have a question regarded to the charts. I registered by one broker, they are giving signals when to buy and what....but for me is quiet suspicious because as they send the indication the price starts rising, but it rises so high like by not any other platform. The price is not the same whatever broker you use?
The price is the same. If they're not, something is wrong with that particular broker.
Hello Mr. Clay,
I am trying to learn the market, but it seems as if I have bad luck. I opened a paper trading account about a month ago and 2 out of the 3 total investments have been failures. ANET and EEQ both fell sharply due to news and I was stopped out on both trades. I think I'm reading the charts well enough and I do some basic fundamental analysis before going through with the trade, but it's apparently not enough. Is there a website (not related to the stock's company) that provides news and events that could inform me of potential dangers like these?
Where is your source of learning? Random information from the internet?
Always Use stop loss
thank you.
i became a very good trader
Glad to hear that
Also a beginner here: Can you do a video on what is a hedge fund, differences between common stocks, trust, bonds etc?
This playlist should help claytrader.com/blogs/trading-101/
Thanks! I'll go through it. I've gone through another playlist that entailed most of your Trading 101 videos :)
Great
Hello Clay i have a question ,may sound silly but , how does the broker deal with all the transactions at the same time ? You said that every second numerous transactions happen so the broker handles it on his own ? Is it a group of people ? Or is it a computer algorithm?
All computer coding
You mentioned this happens electronically at a "snap". So is this "broker" an actual person or a software/algorithm?
Software.
Thank you so much for this video!
I just have one question: How much should I pay a broker?
$0 if you use this one: claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
Question :- What if the your Broker who happen to be the Broker of the Seller too and he holding the bits so he can get highest commissions ?
That's not how it works, at least not here in USA (where I am located).
Is there anyway that you can just trade stocks by yourself?
No. You need a broker, but a broker is really just "buttons" as you can see here - claytrader.com/videos/live-guide-buy-stocks-online-step-step/
is it a good idea to short penny stocks that are being promoted. Al so what's the best broker for that. ty
Nope. It makes little sense, here's why - claytrader.com/videos/short-penny-stocks/
Thank you
You're welcome.
could you clarify more on why not to use a bank or in person broker ?
Way cheaper to use online
brilliant.
Thanks. Glad you enjoyed.
The video doesn't say how brokers work. It only describes a beginner's fantasy how brokers could work. For example, why brokers need to have twice as much capital as the size of your trade just to be able to execute the trade?
Correct. This is a video for "beginners", hence the 101 title of the series.
Thank you. But how do I trust the broker who has an access to my brokerage account? Is the broker license sufficient? How do I protect myself from the brokerage fraud?
Make sure they are registered.
Hey i want to know how much i have to start with and where to start with a website or an app on my phone and wanted to know if it works and is it worth it thank you.
Give this a look: claytrader.com/getting-started/
Great video! New subbie :) Thank u for your time.
I have a Stash portfolio. What do u think about Stash? I like Stash as a beginner but, I'm considering opening a Charles Schwab acct to jump up to a bigger platform. I want to do some active trading to slowly grow the account as well as make some longer term investments. Any thoughts on what to expect or be aware of??
This should help - claytrader.com/blog/best-online-stock-broker/
I wanna ask something...now i'm dealing with a company and the trade for me and my trade was successful then my trade profits are sent to broker site after that when i going to withdraw my profits i need an authentication pin when i communicate with them they told me that i've to pay for fee to get my authentication pin...now my question why they didn't withdraw this fee from my trading profits there ..why he is asking for recharge then paying?!! So please i want a reply...and i'm afraid to send the fee and don't get my profits.. it's my first time investing so i want some explain.
Sounds like you're being scammed.
@@claytrader ohh😰 i didn't pay them any more...i wanna send you some screenshots from that site could you give me your Instagram or any account to communicate with you if you don't mind.
I found it and sent you message so if you don't mind check it.
@@simsemmahamed5720 it's a scam
Steve Rogers is into trading.. COOL! 😎
I... think... that's a compliment lol
Suggestion , As the boss can i supply the broker with a online stock company to do transactions for me, or is it his job to find the correct and most suitable ,reliable company for me?
You can do it all on your own if you want and just use the broker to actually 'buy' and 'sell' the company.
great vid
Thanks!
Hey Clay, If I want to start trading how much money do I need to start and do I need to pay the online broker every time even if I am not doing trading or are there any online brokers that doesn't ask any payment.
Give this a look - claytrader.com/blog/best-online-stock-broker/
could you do a video or direct me to a good one that explains what options, bonds, futures, securities and etc. Are?
Here ya go - claytrader.com/courses/
thank you
You're welcome. Let me know if you have any questions.
Great video! I had a question about the guide about picking a broker: If I will start out as a "non active" with the potential to progress as "active" are there any negatives about choosing a broker like Interactive Brokers as opposed to one of the ones meant for non-actives?
Thanks!
The only negative is the "hassle" to switch brokers. But it'd be well worth it as I explain here - claytrader.com/videos/practical-look-trading-commissions-part-2/
But can’t you use the internet to buy stocks without the need of a broker? For example, using robinhood?
Correct, you need a broker.
could you play the brokers roll as well ?
If you set up your own brokerage, but that would be quite the endeavor.
ClayTrader Is that what you are doing in your live videos when you are trading? are you the broker?
No, I'm using the broker to execute my trades.
What format is that ?what comision price that your paying ?
And is it supported on mobile devices?
This should help - claytrader.com/resources/
Where are your stocks stored? In your account on the online brokers website or in a bank account? Can you transfer them between your accounts on different brokers?
In your "brokerage" account.
Soooo...if you are selling when your stock is high, who is your online broker selling the stock to?
This playlist will help claytrader.com/blogs/trading-101/
Hey awesome explanation , any brokers /sites you recommend for beginners to buy stocks. Danke shön
Here ya go: a.webull.com/i/ClayTrader
But what do they mean when they say "And lemme tell you these stocks are up 20 by the 21 on the 10" and all that stuff?
I never really got that :P
How much a stock's value has risen (or falled)
Please tell us about the apps out there.
Which does what and how and the safety of each and what not.
Never mind the brokers for now.
An "app" and "broker" is the SAME thing...
Hi Clay, I would like to ask some questions about the brocker.
I know they buy/sell on my behailf but I want to know where they buy the share from?
Let say these's a new company ABC and there are 0 sold shares.
They buy from the stock exchange.
@@claytrader please mention the matching algorithms used in the online trading platforms
@@SaneleHlabisa I'm not sure what you mean.
interesting. I still hving the same question over and over on my mind but I can't find the answer: how is the money controlled and operated on a Stock Trading Platform? I mean, is it possible to transfer or move the money from this platforms to a bank account or to directly buy something else from the internet?
You connect it to your bank account.
@@claytrader cheers
@@mariojhorge23 :-)
So how do I make money? That's just how to get a stock right. The stock prediction and all of that is up to me?
This should help: claytrader.com/videos/stock-make-money/
Nice explanation
Thanks!
Wow 🤩 !!!! The explanation is strongly clear 👏🏼👏🏼👏🏼👍.
Cheers
Hi, what is the relation with your bank? Where are your stocks stored? Do I need to link my bank account to purchase stock? Ans make transfer each time?
You link you bank account to your brokerage account (where the stocks are stored)
It's not about watching videos and wasting your time on strategies, I was ignorant doing so...so I decided to try Mrs. Lisa and ever since then she has made about $14,000 for on every $5,000 I invested just in 2weeks
Contact Mrs. Lisa tell her I directed you. +1 539-233-1110
Does one need photo id this gets me every time?
Depends on the individual broker.
Hey Clay, I've got a question....I don't think my broker has put his pants today, what can I do? 😂😂😂😂 j/k buddy.... you're doing a fantastic job man
Stop spying on him ;-) lol
I started a brokerage account with Fidelity and put $200 in it. So now I would have to call a broker? They don’t invest the money for me automatically?
Nope. That's on you. If you only have $200 and you want to invest, use this company claytrader.com/videos/m1-finance-too-good-to-be-true-no-theyre-awesome/
what about using robinhood to skip the brokerage fees?
My thoughts on that here: claytrader.com/blog/broker-review-robinhood-trading-app/
So what happens when everyone is selling and theres no buyer? Or you want to buy a stock at a price but theres no one who wants to sell?
There is always someone willing to sell. As far as buying? If no buyer, your stock would be considered "worthless".
@@claytrader so when a stock is too overpriced at its peak and soon people will start to sell them why would someone buy it knowing the price is gonna go down ?
So Webull is a broker? Can l invest with webull if i live in Europe and can i buy US companies stocks or only EU companies stocks?
Yes, WeBull is a broker.
Do I need a broker for dividend stocks as well?
You need a broker for all stocks.
hey i am a noob, but here's my question, when i wanna sell my stock, is there a probability that someone with different broker can buy it?
Yes. A broker just gets you access to the overall market place, so that's a very real possibility.
Thanks, you have helped me a lot
Reminded me of wolf of wall streat
Crazy movie!
Hey I want an online broker but i dont know where to get one that's official
I recommend: claytrader.com/webull
Hello, Great video, i've watched all your trading 101 videos and i was just wondering; how do i go about learning the next more advanced level of trading
If you enjoy my free stuff, you'll really enjoy my premium content - claytrader.com/training/
Pls how do I start I actually know nothing...and am ready to start up
I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/
where does the brokers get the stocks from? what if nobody is selling shares and someone wants to buy?
Broker gets stock from company. There is always someone willing to sell for the right price.
Are brokers known to do dirt bag stuff like run off with your money? Is this safe?
Not well established ones.
I have watched this video and I want to start buying stock ,any advice
Use this one: claytrader.com/videos/start-investing-how-to-get-5-free-stocks-seriously/
How to securely invest in stocks?
Here is my strategy courses.moneywithclay.com/p/grow-rich
How do you know when to sell your stock?
Depends on your strategy and goals.
Wait so if I’m using Schwab to trade is Schwab the broker?
Correct.
i thought the broker has to go through the investment banks who have MMs that control the algorithms?
That doesn't take away from the fact that you personally need a broker.
@@claytrader i never said you dont need a broker, lol.
I guess I just didn't understand what you are asking or trying to say.
Is the broker an actual person or just the cpu. Sorry I’m confused
it can be both. Using a person though will be way more costly.
3:38 - LMFAO "This broker got one arm bigger than the other"... I bet he met many brokers down the road where he met one with that type of characteristics. 🤣 This dude is funny.
:-)
Hey Clay, how does one vet a broker?
I recommend: claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
can you tell me where to find a good deal with a broker
Here ya go: a.webull.com/i/ClayTrader
can you refer any discount online broker for FOREX currency trading?
Lots of them out there. Run a Google search.
whats the minimum amount of money to do this kind of thing?
Watch this: claytrader.com/videos/how-to-get-started-day-trading-with-only-100-and-zero-pdt-rule/
What you aren't giving information on to the beginner such as myself is how do I actually pay for the stock to the online trader? Is the money taken from my traditional checking or savings account? Do I make out a check or money order or cashiers check to the online brokerage firm? Where is the actual cash to pay them coming from? This is THE MOST BASIC OF BASIC QUESTIONS that nobody seems to answer.
All brokers do it differently. You'd have to call and ask.