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Share Trading Broker
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Written by:
George Rossi -
Updated:
- What is Shares Trading?
- Top 5 Shares Trading Brokers
- What is the Trading in Shares Platform?
- How to Assess and Choose the Best Broker for Share Trading
- How to Start Trading Shares
- CFD Trading of Shares
- Popular Share Trading Strategies
- Benefits of Share Trading
- Frequently Asked Questions
What Is Shares Trading?
Share trading is the buying and selling of various company shares listed on the stock market. Generally, shares represent equity ownership in a corporation or financial asset, acquired by traders. However, not all shares are available to trade: only those issued by publicly traded companies.
- The terms “shares” and “stocks” are often used interchangeably in the market.
- So, what is a share trading broker? It is a regulated broker that executes orders in the financial market (buying or selling of stocks and other investments) on behalf of its clients.
In fact, there are many types of shares; however, the two main types of Shares are as follows:
- Common shares: Known as Equity Shares, represent ownership of a corporation
- Preferred shares: Preferred shareholders are Senior to Common Shares and possess more rights to dividends or distributions
Top 5 Best Share Trading Brokers
Here is our selection of the Best Forex Brokers for Shares trading. The list includes Forex Brokers offering mainly CFD Shares trading. There are many trustworthy brokers with good standing enabling share trading, but our advice is to choose a platform that meets your trading expectations and has all the tools for successful trading. We recommended these selected Brokers as trading Shares are considered good quality and safe with them:
- HFM – Best Overall Share Broker 2025
- BlackBull Markets – Best Lowest Spread Share Broker 2025
- FP Markets – Best MT4 Share Broker 2025
- XM – Best for Beginners Share Broker 2025
- Fusion Markets – Best EA Trading Share Broker 2025
What is the Trading in Shares Platform?
At present, investors predominantly trade shares by signing with an online broker to select preferred shares for trading or investing. Share trading is easily accessible, taking only a few minutes to settle after selecting a broker. However, choosing a good platform or a stockbroker with favorable features is the key to success.
There are two main ways to trade Shares: either invest in real shares trading (See Our List of Brokers with Real Shares Trading) or speculate on price movements through CFD Shares.
We advise you to understand the differences between real shares and CFDs and choose accordingly.
See some of our findings on share trading:
- Share trading mostly takes place on exchanges (such as the New York Stock Exchange or Nasdaq), and only registered members or licensed firms can access them. Thus, to trade shares, individuals should sign in with a licensed broker.
- Shares represent a portion of ownership in a public company and reflect a part of its value. Shares are the most demanded markets, after forex and commodities.
- The prices of shares rise when demand outruns their supply. Share traders benefit from these market movements.
- The share market is known for its stability. However, due to political or economic changes, it can be volatile. This might result in losses.
- In share trading, traders can take both short– and long-term positions.
- Share trading requires deep and careful market research. Otherwise, traders might make wrong decisions. To conduct research, traders mostly use technical analysis. Thus, it’s good to choose a platform that enables meticulous market analysis.
| 📊 Trading Instruments | Stocks, Shares |
| 📈 Leverage | Yes - for CFD Shares, No - Real Shares |
| 🗓 Expiry | No |
| 💰Contract size | Depending on the broker |
How to Assess and Choose the Best Broker for Share Trading
The choice of a sharebroker determines the overall success of trading. A reliable broker should provide a secure environment, an advanced platform, a wide choice of instruments, good research and analysis tools, educational resources, and more.
When making a final choice of a share broker, here are the key factors to consider:
- A top-tier license from a respectable authority will ensure the safety of the broker’s practices and safeguard its investors’ capital. Trading with unregulated brokers puts traders’ investments at risk, as these brokers operate without adhering to strict rules and guidelines.
- The broker’s standing is another essential factor. The broker’s overall consistency is another factor to pay close attention to. If the broker has had a long operation history and transparent services, it is another confirmation of its reliability.
- Customer feedback can also influence the decision when choosing a broker. Real traders often share their experience with a broker, highlighting both the positive and negative aspects of trading.
- A reliable platform with an extensive range of analysis and research tools and features allows traders to execute trades and place trades based on deep research through multiple charting, indicators, and more.
- Share traders should also prioritize the availability of a good range of instruments. A wide selection of shares allows for extending portfolios and exploring the market further.
- Beginner traders should also prioritize educational resources and research tools. Learning materials, such as webinars, trading courses, eBooks, and glossaries, enable traders to gain substantial knowledge and understanding of the market and trade based on informed decisions.
- The quality of the customer support ensures that traders receive timely assistance in both technical and trading-related issues. The availability of various communication channels allows traders to choose the most efficient and accessible option.
- At last, the choice of funding methods is essential. The availability of different funding methods depends on the entity under which clients open an account. Thus, traders should check in advance which methods are available in their particular region. Also, check customers’ feedback on deposits and withdrawals, as many traders often indicate complications while withdrawing their profits.
Best Online Share Trading Broker List
Here is the complete list of Regulated brokers that offer Share Trading, either offering Real Shares investing or speculation on price via CFDs, verified by our experts:
| Broker | Detail |
|---|
How to Start Trading Shares
Many traders, especially those new to the market, get confused about where to start share trading. Although share trading is straightforward, it is still important to follow certain steps to ensure efficiency.
With the right direction and trading plan, the trading journey can flow without complications:
- With a regulated broker, traders can be at ease without worrying about risking their capital. Brokers licensed by authorities such as FCA, ASIC, FSCA, or CySEC adhere to strict rules and guidelines. Unregulated brokers, on the other hand, do not ensure the same level of safety and trust.
- After choosing a reliable broker, share traders should complete the account opening process. It is essential to select the account type that meets their trading needs and is the most suitable for share trading.
- After opening an account, traders should fund it by using one of the available deposit methods.
- Then, traders should research the market, analyze charts, and identify opportunities for the first trade.
- Open positions should be actively managed and monitored. Besides, it is essential to use risk management tools to avoid negative outcomes of trades.
Common Mistakes Beginners Should Avoid
Naturally, new traders face many challenges at the beginning of their trading journey. It is due to a lack of proper knowledge and skills. Beginners rush into trades instead of planning and learning.
Here we have compiled the typical mistakes beginners should watch out for:
- Rushing into trades without a plan and goal can lead to wrong decisions and loss of investments. Traders should have a strategy, use risk management tools, and rely on analysis and deep research rather than give way to emotional trading.
- Overtrading is another common mistake. Most novices jump in for the thrill of it and often make poor decisions when entering the position. Many traders are afraid of missing an opportunity and, therefore, enter several trades simultaneously.
- Besides planning and using strategies, traders should manage risk to avoid losing more money than they are prepared to lose. By applying risk management tools, such as stop-loss, they limit the possible negative outcomes:
- Often, beginners rely on social media trends and unqualified tips. Trading decisions should be based on research and analysis.
- At last, beginners often trade out of emotions, such as fear, greed, or panic. These emotional reactions lead to impulsive decisions, negatively impacting the overall experience.
| Share Trading Advantages | Share Trading Disadvantages |
|---|---|
| Shares grow with the economy | Shares are highly risky instruments |
| Wide range of Shares available | The stock market is known for high volatility |
| Provide liquidity | Real Stocks: Might be more suitable for Professionals only |
| Real Shares: Generate income from dividends | Real Stocks: Do not generate profits immediately |
| CFD Shares: Do not need much investment | Real Stocks: Take a lot of research before investing |
| CFD Shares: Relatively easy to sell or buy | Real Shares: Some Shares are highly priced |
| CFD Shares: Allows to trade highly priced Shares | CFD Shares: High Leverage may lead to loose of money |
| CFD Shares: Leverage allowed | CFD Shares: Require good understanding of Trading and Risks |
CFD Trading of Shares
CFDs can be traded in Shares and are actually the most popular way to Trade Shares; in fact, almost all Forex Brokers offer share trading on a CFD basis since it offers a good chance to trade global markets without a direct deal with the Exchange or the purchase of physical Stock, and also to wait a long time until the asset potentially grows.
In other words, CFD Share trading is a simplified way to trade Shares, since it enables traders to access the underlying asset at a lower cost by using leverage or Micro or Nano lots as offered by the Broker, all provided with straightforward execution right from the trading platform you use.
However, in CFD trading, positions often come with commissions on Shares. Besides, CFDs are risky instruments, not suitable for everyone.
Popular Share Trading Strategies
Strategies for share trading are chosen depending on the trading goals and expectations, risk tolerance, and overall experience. Each approach and strategy is different, and understanding them helps traders use the one that meets their trading purpose.
The most common strategies favorable for share trading are:
- Long-term investing is a common share trading strategy in which traders hold shares for years to benefit from a company’s consistent growth.
- Swing trading is another strategy that share traders use. However, this one is for shorter-term positions, usually benefiting from price movements taking place in days or weeks.
- Day trading, as the name suggests, is used for the trades that take place during a day. Day trading focuses on smaller but frequent price movements.
- Growth investing in share trading focuses on companies promising future growth and expansion.
- At last, in value investing, traders focus on undervalued shares, expecting value to grow in the future.
Benefits of Share Trading
Share trading has multiple advantages that attract both beginner and professional traders. From diversification to flexibility, share trading benefits are essential to understand and align with specific financial goals.
The key benefits of share trading are, but not limited to, the following:
- Share trading ensures a good ground for capital growth. Depending on the investment decisions, share prices can grow and expand.
- It also allows diversification in portfolio trading. Investors can distribute their capital in various industries across different global regions. It increases the potential for diverse sources of profit.
- Dividend income is another advantage in share trading. It is common to see many companies paying dividends, allowing for passive income regularly.
- Shares enable traders to invest in any company worldwide.
- Trading shares is more accessible with an online broker, where traders can start with small investments.
- Shares also stand out for high liquidity, especially those of popular and reliable companies.
Risks Involved in Share Trading
Despite the numerous advantages that share trading offers, traders should thoroughly consider the associated risks, too.
Some risks are caused by economic changes, global political events, and other developments potent enough to influence market movements.
The key risks include:
- One risk to be aware of in share trading is market volatility, since prices can fluctuate quickly. These price fluctuations are due to unforeseen world events, such as shifts in the economy.
- Besides, share prices are negatively affected by mismanagement, scandals, or bad decisions within a company.
- Economic and political events can negatively impact the overall market, decreasing share prices.
Frequently Asked Questions
How to Open a Shares Trading Account?
Opening a share trading account is easy, very much like opening a standard account with a broker. In a matter of minutes, traders can gain access to share trading. However, before signing, we recommend evaluating the broker’s offerings, features, trading platforms, and conditions, and only then start with the broker.
Trading Shares for Beginners
Beginner traders should be careful in picking a broker. Some brokers are more favorable for beginners, as they offer better educational materials and provide various webinars and courses. We recommend brokers with trading academies. Besides, a broker with a demo account is essential to check, too. Some of the best brokers suitable for beginners for CFD trading are Pepperstone, XM, and Interactive Brokers for Real Shares Investment.
What Are Brokers with Fractional Shares?
A fractional share means that the trader owns less than one whole share of a company. Signing up with a broker that offers fractional shares is especially beneficial for traders with limited funds, but it is mainly available through Real Stock Trading Brokers.
Do I Need a Lot of Capital to Trade Shares?
Any trader, from beginners to professionals, can engage in share trading. Most brokers offer CFD share trading with minimum initial investments. Besides, for real share trading, clients can invest in fractional shares, making investments more accessible.
Can I Earn Dividends from Every Share?
No, dividends depend on the company’s policy. If the company chooses to distribute its profits, then it offers dividends.
What is the Best Strategy for Beginners?
In fact, there is no best strategy as such. The strategy depends on personal experience and goals. However, many beginner traders favor long-term investments and swing trading.
Are Share Trading Profits Taxable?
Generally, taxes depend on the country of residence. If the country has specific rules and laws, some gains might be subject to taxes, such as capital gain or income taxes.
Can I Trade Shares on a Phone?
Many share brokers offer mobile apps, allowing their clients to invest and benefit from the same tools and features available for desktop trading. The apps include charts, live prices, alerts, and updated news.
Most Popular Global Stock Markets
The most popular stock markets are the NYSE and Nasdaq, the London Stock Exchange, the Asian Tokyo Stock Exchange, and the Hong Kong Stock Exchange. These markets allow access to global companies, attracting both local and international investors.
