Thanks to the advancement in technology, online trading of stocks and other assets is now easier than ever before.
By definition, online trading is performing activities like buying and selling stocks with the help of an internet-based asset trading platform. It is also known as self-directed investing or e-trading. Like traditional trading, it requires a brokerage firm, except that it must have a platform easily accessible online. With more people and businesses embracing the digital age, it is safe to assume that the future of trading lies online.
Online trading has been around since the late 90s, thanks to the availability and affordability of high-speed internet connection and advanced computers. Since the turn of the millennium, it has been rising in popularity, facilitating trading opportunities for all kinds of people. In theory, you can buy and sell almost all the assets available to trade in global stock and currency exchanges – stocks, CFDs, ETFs, forex currencies, cryptocurrencies, bonds, commodities, etc. There are a number of great benefits of online trading, which we discuss below in detail.
Do It Yourself Investing
The main advantage of online trading is that you can make all your investment decisions and executions by yourself. The online platforms usually offer a great variety of tools and features for traders to conduct all their trading activities safely and under their own discretion. The interface of the platform is easy enough for the mass people, while some of them also offer enough tutorials to learn. If various trading platforms don’t offer these tutorials, there is always the option to look at a website such as https://www.sofi.com/investing-101-center/ to start learning the basics of investing and trading.
As a result, you no longer have to be present in the stock exchange physically or dial-up your portfolio manager to conduct trading; removing the need to wait in line or incur additional costs in charges and fees. With features such as stop loss, take profit, pre-set order to open or close, etc.; you don’t even have to remain active in the market all the time.
Available Anytime, Anywhere
As you can imagine, online trading platforms never sleeps. They don’t have set working hours, rather they remain open and accessible 24/7, 365 days a year. So, no matter where you are based on which time zones, you can perform your trading activities according to your comfortability. It’s particularly beneficial for forex and crypto traders, as these markets remain open all the time too.
Some trading platforms are so advanced that they can be accessed by using any internet browser in any device – smartphones, tablets, computers, etc.; bringing investing and trading quite literally at the palm of your hands.
Multiple Assets in Lower Fees
Thanks to the online platforms, trading is now a truly global activity. Irrespective of your geographical location, you can now trade on any currencies and stocks on any global exchanges with the same rates everywhere. You can also take advantage of CFDs and leverages to trade either way (up or down) for huge gains (or losses). With online trading, both the fees and the thresholds for initial investment are also very minimal.