Online Stock Trading: The Advantages of Online Trading
Online stock trading is progressing by leaps and bounds. Since the birth of the stock market all those years ago, floor trading has been and at this time remains the norm throughout the world. With the growth of modern technology and especially the Internet, online stock trading is rapidly catching up with the old traditional styles of trading. In those early days, trading was done through what is known as open protest, this is a form of communication that traders would use not only to buy and sell shares on the market floor, but also to exchange information about what what is sold and what merchants buy. These hand signals are still used today on most stock exchanges around the world.
As Bob Dylan sang “times are changing” and so have technological advances. In today’s fast-paced world, demand is for a simpler, faster and less expensive way to be able to trade stocks on the stock markets.
The main difference between online stock trading and the traditional floor trading system is that you no longer need to be physically present to trade, you no longer need to make untold phone calls to check with your broker how current prices are performing. , or for information about a company or industry in which you may be looking to buy or sell existing stock. With the advent of online trading, all you need now is a decent computer and of course an internet connection.
The biggest advantage of online stock trading is that many of the hassles that came with investing through a broker have been eliminated and you are free to invest on your own. The Internet is also plentiful when it comes to all kinds of information you could want to acquire on virtually any industry anywhere in the world. Plus the fact that all the paperwork that was formally needed to keep records for future reference can now be safely stored on your computer and only takes a click of the mouse to retrieve.
When you’re ready to start trading stocks online, you’ll need to go through a brokerage house. These brokers will be able to set you up with the three basic accounts you will need; a trading account, which helps you trade online. A demat account, this to manage your business process and an online bank account, which ensures easy money transfer over the Internet.
Don’t rush and pick the first brokerage you see, you will need to do some research and find out what fees they will charge to use their facilities. Do some research before you open an online stock trading account, you don’t want to have to pay a lot of running costs before you start your new venture. Choosing the right brokerage house is just as important as choosing the right stocks to invest in.