While dealing in shares has got a lot simpler in recent years, it is still not without its risks. Below we list a few things to watch out for:

Internet security

There are two main aspects to security on the Internet. One of them involves what your broker does at his end, and the other involves what you do at your end.

At the broker end, there is encryption software, which ensures that any information that is passed between you and him is scrambled. Only someone with special decryption software and a unique key code would be able to unscramble the information and look at your account. There has been the occasional cock-up in the past where one person has been able to access someone else's account. But if such a technical glitch happens, it's the broker's fault and it would be liable for any losses you might sustain as a result.

At your end, your responsibility is simple. Never, ever reveal your ID or password to anyone. And don't walk away from your computer while you're in the secure area of your broker's website. As long as you are careful and keep to your side of the bargain, your broker has to take responsibility for anything that goes wrong at their end.

What if your broker goes bust?

Most brokers are part of large financial services companies and so are very unlikely to go bust. However, there is a compensation scheme in place should the unthinkable happen. In the case of investments, The Financial Services Compensation Scheme (FSCS) will pay out a maximum of £48,000 per individual, being 100% of the first £30,000 you have invested and 90% of the next £20,000.

As well as the FSCS, many brokers carry additional insurance designed to protect investors in a wide range of situations.

Boiler rooms and share scams

Unfortunately, in recent years we have seen a big increase in the number of share-related scams. Most of these relate to ‘boiler rooms' which cold call people offering them share tips that are “too good to miss”. They may offer the chance to buy into a company before it floats on the market or just before it makes an amazing technological breakthrough.

The best advice is simply to hang up the phone and ignore these people, no matter how convincing they sound. You can check to see if the firm concerned is one that the FSA has identified as not authorised but targeting UK investors. We also have a very active discussion board where Fools discuss scams of all sorts, but particularly those that are share-related.

Spreadbetting and CFDs

In the last few years there has been a big increase in investors buying and selling shares via spreadbetting and CFD companies. These firms allow to can bet on shares going down as well as up, and to ‘leverage' your investments. This means you can effectively invest in the same number of shares for a much smaller outlay.

While this may sound attractive, it's a lot, lot riskier than directly investing in shares. For this reason we reckon it's not really suitable for novice investors (and indeed for most experienced investors as well!).

Get yourself a strategy

In order to make money on the stock market you'll need a solid investment strategy. And you'll need to find one that fits in with your personality, playing to your strengths and minimising your weaknesses. Read our guide on How To Profit From Shares for more details.

Now you're ready to start share dealing. Good luck and may your investments make you considerably richer! Don't forget you can regular investment ideas from our twice-weekly The Investor email. Or sign up for our online share-tipping service, Champion Shares.