Although Denmark does not have a reputation for being a large trading nation, in the last few years many Danes have entered the stock market and started trading. More and more people are realizing that this is an opportunity to make some extra money. Read on if you want to know more about stock trading in Denmark.
Another reason why so many have joined the trading world in recent years is the negative interest rate that most banks now charge and which people naturally want to avoid.
Choose your trading platform
The first thing you need to do when you want to start trading is choose a trading platform. There are a number of platforms to choose from, so do your research again before you decide. When you trade in shares, all profits and losses must be reported to the tax authorities, and by choosing a Danish trading platform, you do not have to worry about it, as the platform does it for you. Most banks offer stock trading from their own platforms, but you can also choose an individual platform such as Saxoinvestor or Nordnet. You can use one Danish stockbroker comparison to find out which platform suits your needs.
Another thing to consider before deciding on a platform is which stocks to buy. The different exchanges charge different commissions, and therefore you check which trading platform is cheapest for the exchange you want to buy from. The different trading platforms charge different commissions for the different exchanges, so it is worth checking this out before deciding.
Decide which shares to buy
After deciding your trading platform and signing up, transfer money from your bank account to the platform and then you are ready to go. Now it’s time to figure out which stocks to buy. As a beginner, it is a good idea to start with small amounts and put them in good solid stocks like those from the Danish C25 index or the best from the New York Stock Exchange. These companies tend to be less volatile and more secure. In the stock market, however, there are no guarantees, and it is your responsibility what you buy, so think carefully and do your research before you press the buy button.
Spread your risk
While it is possible to make a lot of money in the stock market, there is also a risk of losing money. With this in mind, it may be a good idea to allocate most of your portfolio to solid, low-risk stocks, perhaps even your entire portfolio. If you like, you can put a small part of your portfolio in stock that is a little more risky. Last but not least, never invest more than you can afford to lose and never take out a loan to invest. Good luck!
Source: The Nordic Page