Make the most of online trading

When the markets are volatile and you are trading to minimise losses as well as to pick up bargains, it becomes all the more important that your online broker is not only highly efficient and easy to use, but also offers a truly cost-effective service.

Yet one of the key messages for traders and longerterm investors alike is that assessing the real costs of transactions through different brokers is like trying to compare apples and pears.

Some work on a flat-fee basis, while others use percentages or tiered commission rates. And that's before you've even looked at the special deals for frequent traders and those who want to invest on a regular basis, or the various extra 'background' costs that can mount up on your account, whether you are actually using it or not.

In the this supplement we hunt down some of the best deals, looking not just for low costs, but also for genuine transparency and simplicity. There's a lot to be said, we believe, for setting up an online account with a broker where you're not under pressure to carry out additional transactions just to qualify for a lower dealing rate.

To that end, turn to page 11 to find out how you could benefit by consolidating your portfolio under a single broker's roof - and how easy it is to transfer your accounts.

In the long term, online investors should also be making use of the tax wrappers that are widely available through internet brokers. As we see on page 4, it's a straightforward process to open a self-invested personal pension (Sipp) and an individual savings account (Isa) and run your own tax-sheltered portfolio (with or without a financial adviser's input). But if you're looking ahead to retirement, it's not so clear where the greatest real benefits lie.

Finally, for investors with a higher risk profile, we take a look at the uses, potential dangers and costs of spreadbetting and contracts for difference.

As Britain's best selling personal finance magazine, Money Observer has informed and educated millions of people about how to make their hard earned money work as effectively for them as it possibly can.

Whether you're picking a credit card or a mortgage, buying an investment or insurance, saving for retirement or trying to cut your tax bill, we can help you make the right choices for you. We are dedicated to presenting financial information in an accessible, jargon-free manner and providing the tips and advice you need to take control of your money.