Many people think that online stock trading is only for people who are very well-versed in the stock market or for those who dream of being day traders and then end up going broke.  However, that isn't necessarily the case.  I'm just a mom who doesn't know that much about the stock market and I actually have an online stock trading account.  

If you've ever thought about using one of those online accounts like Scottrade or TD Waterhouse, but aren't sure if it's a good option for you, here is some information that may help you decide. 

~ Online stock trading is an appealing option to people who don't have a lot of money to invest at one time. There are some brokerages out there that will let you open an account for as little as $2,500. This opens up investing to people who may not have been able to really invest with their own broker in the past. 

~  You may be wondering if you need to be knowledgeable about Wall Street and all that financial stuff.  In truth, it may help to spend a little time understanding the basics. At a minimum, you should understand what stocks, bonds, mutual funds, etc are.  However, you don't need to be a broker or a genius to effectively open one of these accounts.  There are lots of tools and you can invest in low risk investments without having a lot of knowledge.  

~ It's important to understand what will happen when you invest your money with an online stock trading account.  All of them will require you to take a test that will gauge your risk tolerance. This is required by law.  Once you know that, almost all of the companies that offer online services will help you to choose your investments.  For example, mutual funds are considered to be good investments, and you can invest in those online very easily.  You don't have to buy and sell individual stocks - which requires more knowledge and carries a lot more risk. 

~ It's also important to note that most of these companies have support staff and brokers who are more than willing to assist you with choosing your investments and setting up your account.  

~ The cost of using online stock trading is very appealing to many people.  When you use a broker, you will typically pay a percentage of your total account balance. When you use the internet, you typically pay when you make a trade.  

~ There are lots of tools that can be used on the 'net that make investing online a possibility for almost anyone.  

If you have millions of dollars, you probably don't want to take all of your investments from your current brokers to invest online. However, if you are starting with a small amount of money or want to use some of your savings to invest online, it's worth considering.