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After years of hype, investing in cyberspace has become reality. In the U.S.,
the trend is expected to grow strongly over the next five to eight years. In Hong
Kong, we saw the launching of a stockbroker internet not too long ago - the first
broker in Asia to offer internet trading facilities for Hong Kong stocks. In time
to come, many are expected to follow suit. In Malaysia, the trend has yet to catch
on but things are expected to change.
Investors who want to have a sneak preview of what's available around the world,
they should have no problem given the increasingly friendly websites. Before you
attempt to start a programme be it through a traditional broker or the internet,
make sure that you have acquired some good basic knowledge on investing and have
at least done your homework. It could be hazardous to your nest-egg if you trade
the wrong stocks either online or through traditional means.
Various sites have their own characteristics. It is worth taking a look at as many
websites as possible. Different programmes have different features that appeal to
you best such as low commission rates or professional research material, etc.
Attractive features such as low commissions may come with certain limitations. Different
commissions rates may apply to different instruments - there may also be restrictions
in some instruments. Or alternatively, higher commissions may be accompanied by professional
research assistance. Some sites provide research reports, weekly newsletters, financial
advice and colorful charts, etc.
Do not be overwhelmed by the information provided on the internet. While it may
be possible for you to register with an international investment website, do not
be fooled into buying a stock just because it is listed under the recommended category.
Beware also of financial information given by analysts whom you do not know.
Challenge the sources, if possible seek verification from other reputable sources.
There are also risks that the stocks recommended are highly volatile and may not
suit your investment profile as a conservative investor.
Investing in the cyberspace clearly has its pros and cons. Currently in many
parts of the world, it appeals to only a small segment of the investing public. As
investors begin to realize and accept the benefits of information technology, the
concept of cyber investing will no longer sound too alien.
After all, if shopping on the net is already a common occurrence, investing in the
cyberspace is a natural progression in technology advancement. It may take some time
for investors to do business online but people will soon become comfortable with
putting their money online in the future.
Technology will fundamentally change the way people manage or invest their money.
It will make available cheap tools at investors fingertips to compete with the traders
on the exchange floors. For the small investors, the door to the virtual market is
just beginning to open.
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