The Best Online Trading Software for a Newbie

    When branching out into investments beyond those offered at your local bank, you want direction and education so you know what to expect and how to improve your investment strategy. Online stock trading sites put you in the driver's seat, giving you the tools to research, buy and sell publicly traded stocks, options and other investments to diversify your investments and grow your nest egg. While the trading platform, or method of buying and selling stocks, and service you choose ultimately depends on your personal preference, the amount of educational resources an online service offers is invaluable when you are learning not only the ins and outs of the market but how to trade within a particular platform.

    The services on our lineup feature the top stock trading sites, but we've focused on the educational materials those services provide. Most services offer comprehensive knowledge centers with articles and videos to help you learn about trading. These options are designed to help you learn the basics and improve your knowledge.

     If you already have a working knowledge of trading investments or prior experience, you may benefit from our Online Stock Trading site, which presents our top services with less emphasis on beginner knowledge and resources. If you are seasoned investor and seeking out riskier investments, look at our Options Trading or Forex sites. For more information, have a look at our articles on stock trading. You should also understand the impact of trading stocks on your taxes. Capital gains tax, in particular, applies to any profit you make on a trade, which is assessed on the difference between the selling price and the purchase price. You only pay taxes on realized gains, meaning you do not pay taxes until you actually sell the stock and receive the funds, even if its value grows over the course of the year. Short-term holdings, holding an asset for a year or less, are taxed a higher rate than long-term holdings of between one and five years.