The first thought many have when they receive lump sums or any form of extra cash, is to invest. However, many persons who have this first thought aren’t sure where to go from there.

Based on this empty space, research and the information provided by the Jamaica Stock Exchange, the Businessuite Markets team has compiled “A Guide to the Stock Market and Trading” specifically for those who don’t know where to go or what to do. For this edition, we will focus specifically on using an online platform to trade. For many traders who are not familiar with online trading, the concerns rest on four things. They include: how to trade online, who to trade online with, the cost of online trading and the risks associated with this method.

The Jamaica Stock Exchange (JSE) launched its online trading platform in 2015 in an effort to attract greater interest from investors abroad as well as the youth demographic. The trading portal allows investors to buy and sell securities, view market performance, monitor their account balance and view statements. To use the platform, investors will first need an account with one of the authorized stock brokers, a list of which is provided on the JSE website. Although investors have 24-hour access, each transaction must be settled by a broker and will be executed only during business hours.

Although an investor may be interested in trading on his or her own, the JSE warns that a broker is indeed necessary for participation in online trading. According to the JSE, the Broker must open the account and thereafter, the investor is free to enter the transactions online (which will be routed through the Broker).

Regarding set up and participation costs, the online trading platform offered by the JSE is currently free of charge. However, investors must be aware that there are applicable trading fees. These include the Broker’s commission as well as taxes which will be applied to each transaction.

One thing to note before heading into the world of online trading however; is the risk associated with the move. Yes there is risk associated with investing in securities regardless of the method used but online trading does bring its own unique risks. For instance, high internet traffic may impact the online investors’ ability to access their account or transmit their orders. The key is determining if the benefits of online trading outweigh the risks. If this is the case, the only thing you need to worry about is the research you need to do on each stock before investing.