People may not be exactly clamouring for online share-dealing facilities given current volatility on equity markets. Nevertheless, the Republic's institutions are starting to add the long-promised online trading to their existing services. Goodbody Stockbrokers was the first to establish an online share-dealing service on March 28th.

On July 12th, its parent, AIB, is on target to introduce a service aimed initially at its online banking customers, with Goodbody providing the dealing part of its service. Davy, NCB and Dolmen are well advanced in their plans to introduce online trading.

To buy and sell shares online potential traders need to own or have access to a personal computer and to open a trading account with a stockbroker or to be an AIB customer registered to bank with AIB Online. There are advantages to dealing online: charges should be lower than traditional dealing charges, and customers will have more control and flexibility about when and how they buy and sell. But there are dangers because share dealing is a risky business and, as published diaries of day traders show, large sums can be lost very easily.

Goodbody is offering share trading, portfolio valuations, transactions history, and information and "knowledge" services, all online, initially to more than 10,000 private clients who will be able to deal in Irish, UK and US shares. Goodbody chief operations officer Mr Eamonn Glancy said: "There is a growing interest in share ownership in Ireland and we intend to facilitate clients in developing their share portfolios by providing a reliable and secure transaction service."

To trade on the Internet, an existing Goodbody client can either return forms already mailed by the broker to clients or indicate their interest through the main Goodbody website - Goodbody.ie.

Because Central Bank regulations and Crest registration require signed forms, clients will then receive a registration pack with documentation that must be completed and returned. New clients will need to provide identity details to comply with Central Bank requirements. Each client receives an individual PIN, opens a trading account and is then ready to trade.

Goodbody is recommending a minimum balance of £1,000 (€1,270) in trading accounts and is operating an instant settlement system rather than the T + 3 days currently used. When a customer buys shares the money will be immediately debited from their trading account and when they sell the money will be credited immediately to the account.

This instant value system will be a plus for customers selling shares but a disadvantage for those buying. Customers who trade UK shares will get an instant firm price quote and 15 seconds to decide if they want to go ahead with the deal.

For trades in Irish and US shares, customers will get an indicative price that they can accept of reject, or they can place a "fill/kill" limit order that will allow the trade to be executed within the set limit and time period or abandoned.

Goodbody has a minimum order level of £100, while the maximum order will depend on the stock being traded, according to electronic media manager Mr Donal Hanlon.

AIB does not think it has missed the boat on the timing of its new online share-dealing service for customers. "It is a longhaul product. People want the option to buy and sell in this way. It is part of enhancing the overall product suite of online services and it is important to take the time to develop a relevant functional service," according to Mr Billy Andrews, general manager electronic banking.

From June 12th, AIB customers registered to bank online will be able to buy and sell shares through its new online share trading service. Customers registered for online banking already have three levels of security to ensure that their information and transactions are safe, he said.

Aimed initially at the 120,000 existing customers of AIB's 24hour online banking, the new service is expected to draw more customers to the AIB brand over time. The minimum order required to deal will be £200, while the maximum individual deal that will be accepted will be £20,000. Unlike the stockbroking service, bank customers will not have to set up a separate trading account to trade shares online - they can use their existing current accounts.

AIB's online share service will allow customers to buy and sell shares listed on a number of indexes - ISEQ, FTSE 350, Standard & Poor's 100 and the Nasdaq. Initially, customers will be able to deal in the shares of about 700 companies and this will be extended as the service develops.

For trades on the FTSE 350, customers will get 15 seconds to decide if they want to go ahead with the deal after they have been given a price. With trades on the ISEQ and the US market, orders will be queued and dealt with within 15 to 20 minutes if it is possible to execute them within the price limits set by the customer. Like Goodbody, AIB will operate instant settlement, debiting and crediting current accounts immediately as shares are bought and sold.

The customer will get a signal on the status of the deal - for example that it has been executed, or that it could not be executed because the price set by the customer was outside the trading range on the market. The customer will also get, through the post, a confirmation slip on the deal, which should be retained because it will be needed for capital gains tax purposes.

In addition to buying and selling shares, a record of the customers' trading will be maintained as they build their portfolios, and they will have instant access to portfolio valuations as well as details of the prices at which they originally acquired the share (useful for tax purposes when the shares are sold). AIB customers will be able to access business news, announcements and other relevant market information on screen as well as share prices.

AIB will not divulge its online dealing charges until closer to the June 12th launch date. But Mr Andrews insisted that the charges will be competitive and dealing will be more timely than the existing service through bank branches.

The online service offers realtime dealing from whatever location and at whatever time the customer wants, Mr Andrews explained. "AIB customers will not have to open a special share trading account and lodge money in it in anticipation of trading; they can operate out of their current accounts," he said. But they can open separate trading accounts if they want, he added.

To trade online, AIB customers will not have to have a specific minimum amount in their current accounts. But they can only spend up to the amount in their accounts - the system has in-built checks to ascertain the current account balance including any overdraft arrangements when the customer places a buy order. Customers will be able to set price limits with their orders - for example, they can set a maximum price with a buy order or a minimum price with a sell order.

Mr Andrews stressed that AIB was not trying to push people into dealing in shares. "People need to take steps to ensure they are properly informed. Buying and selling shares is a risky business. This is not encouraging people to buy and sell shares, it is facilitating what customers would do anyway," Mr Andrews said.