Online Trading,Is it Beneficial?

Posted by Brigham on March 2nd, 2017

Online trading is fast becoming the method of choice for busy investors who cherish the convenience of being able to trade whenever and wherever they like. Up until a few years ago, if a trader wanted to make a transaction, they would have to actually visit their broker to make the investment or call in their orders. Thanks to digital technology and the increased capabilities of the internet, every aspect of a trade can be conducted from any digital device. All that is needed is internet access and a connection to your investment funds. There is no need for a “human” broker as online trading platforms now can provide all the services of a traditional broker.

Stocks were among the first type of assets that were traded online. The very first online stock trade took place in the year 1982 by the North American Holding Corp. in Hartford, Connecticut. But online trading really began to take off in the 1990’s when the internet began to grow for personal use. Between the 1990s and the 2000s, other forms of asset trading began to be offered online including: currency trading, commodities trading, indices, and treasuries. Today, online trading is the primary method of trading.

With online trading, the trader visits the online trading platform of choice and creates an account. With most platforms, there is no need to download any software. Once the account is set up, the trader takes a position on his security and makes the required investment. The funds may be deposited through several different methods including credit card, Paypal, wire transfer etc. The trader then conducts his own trade with the click of a few buttons. If profits are made, the funds may be withdrawn via a variety of methods. Most platforms will also offer trading tools designed to help traders make better trading decisions. A small fee is usually charged on each transaction or trade by the online trading platform.