Trading online isn’t anything that we would create hype about but stock trading is something that you should definitely not miss.
Online stock trading is an act of buying and selling financial benefits through online platforms. You can trade stock bonds, futures, options and almost anything online without any sort of inconvenience. There are numerous kinds of online platforms available to almost anyone who wishes to make money out of online stock trading.
What is online stock trading?
Online trading is simply buying and selling assets through a brokerage’s internet-based proprietary trading platforms. The use of online trading increased dramatically in the mid- to late-’90s with the introduction of affordable high-speed computers and internet connections. Stocks, bonds, mutual funds, ETFs, options, futures, and currencies can all be traded online. Stock trading is also known as e-trading or self-directed investing.
Benefits of online stock trading
Online trading is easy. It is beneficial and it has a lot of aspects that can provide you with some amazing real-time earning.
With the help of internet you can easily educate yourself on your investment options, place orders to buy and sell, and possible make a lot of money or even lose at times without even having to talk to the broker or going out of your home.
The platforms that will enable you to make the trade are basically software that bring together investors and buyers from all around the globe. You can sell your financial instruments and currencies easily to the person who is interested in buying them.
There are hundreds of online platforms that are working in this domain. Some offer online stock trading for free and some brokers keep a minimum fees for their services. All in all, these platforms are highly beneficial and they will provide you with maximum ease and so much more.
We have enlisted top 10 benefits of online stock trading below,
1. There is no middleman
A few years ago, whenever you wanted to make a trade, you wither had to call a share-broker or a sub-broker in order to do it and that wasn’t easy.
But, with online stock trading, you can initiate your trade with just a few clicks and without having to talk to any share-brokers or sub-brokers. This is the biggest benefit of trading online as it excludes the chances of miscommunications and misinterpretations mostly created by these brokers.
You will be talking to your buyer directly and you can easily explain all the aspects of the trade directly to them.
2. Made accessibility easy
Online trading platforms can be easily accessed by anybody who wants and they can execute the whole thing without even having to stepping out of their beds.
The online things that you need for online stock trading is a computer, inter or a smartphone so you could get access to the trading platforms along with having a will to do it. This also allows you to make trade orders from anywhere in the world, giving you all the comfort you need.
All you have to do is classify the quantity and price of your selected stock and upload it to the platform. You will not have to stand in long queues so you can provide access to your stock to the broker.
3. Monitor your trade
If you go for online trading, the process will not just be an easy trading process but it will also be an easy trade monitoring process as well.
The online brokers provide advanced trading tools along with amazing interfaces that makes it highly easier for anybody to monitor the entire trade transaction. Investors can have information available at their fingertips once they log on to their computer or phone.
They can also access research reports, evaluate profit and loss in real time, and also enables for taking appropriate actions accordingly.
4. No broker charges
The brokers who initiate and execute your trade will charge high amount in return. However, if you choose online platforms to initiate stock trading, it will relatively cost you less brokerage and at times, it may even cost you nothing.
This is mainly because setting up and then maintain trading on online platforms is easier than maintain branches with different executives that assist your trading process. Most of the stock trading platforms on the internet are charging way less than the traditional firms who used to initiate stock trading.
Another thing that is worth mentioning here is that the amount charged by the online trading firm can also be negotiated if you make a trade on regular basis.
5. It won’t take too much time
Have you ever calculated the amount of time you have to wait when you call a broker for stock trading and he gets back to you with an answer after what seem like ages?
Honestly, there isn’t broker’s fault over here. A broker is being contacted by numerous investors at a single time. He is a human after all and it will take some time before he can get back to you with an answer. Another catch we would like to discuss is that there is a great chance that your broker might not even listen to you with concentration because he has so much going on in his mind already. This kind of attitude can cause you a lot of trouble and because of it, the broker might even cause you a lot of unbearable loss.
The only solution for these problems can be trading investment on online platforms as it allows instantaneous transactions. All you have to do is research the stock you want to invest in, determine the quantity and the price, verify the volume on the online platform and place the order.
There is no inconvenience caused by the broker and neither you will have to wait days for the order to take place.
6. The transactions are much faster
The prime benefit of trading online is that everything happens on a fast speed. The time taking process usually extended by the broker for placing an order and then initiating it is minimized and you place an order instantly.
All you have to do is make a few clicks and your order will be easily placed online. Another benefit that you get out of trading online is that it enables you take a look at the value of your stocks and available balance that you have in your account.
You can also make easy transactions to and from your online trading account to your local bank accounts in real-time. The usual waiting you had to go through for receiving a payment by your broker is done and dusted.
7. It is a seamless process
Trading on online platforms connects your demat and trading accounts to your bank account.
This enables you to seamlessly transfer funds to and from the demat account. This cuts down the delays involved with cheques and debit slips that you usually face with brokers. You can just log into your account and make a transaction.
The unattended calls by brokers and the issues caused by the delay will be long gone.
8. You receive a lot of knowledge
One of the lesser known benefits of online trading is the exposure you get out of it.
You have no idea about the enhancement you will receive regarding your knowledge about stock markets and all its updates. When you trade online, you have to be completely responsible for the investment decisions you make based on the information you gather on the stock markets. One mistake and you will regret it for the longest of time.
Once the process begins, the investors tend to become smarter than they were before due to reading and researching a lot on how stock market works. To facilitate your knowledge, trading online platforms include complete access to all the research reports published by the stock broking firms.
9. You have all the control
Another benefit of online stock trading is that the investor has all the control over the entire process.
Online traders can trade whenever they wish to. On the other hand, in traditional trading, an investor may be stuck until he or she is able to contact their broker or when the broker is able to place their order.
Investors will be able to to take a look at all their available options instead of depending on a broker that will tell them the best bets for their money. The investor will be able to monitor the process and buy/sell stock according to their own requirements.
10. You will understand your money better
Just like conventional stock trading, you can predict the market behavior and use this to predict a rise or fall in price of the stock. You’ll be handling your own finances and be responsible for them.
As time passes, you will get a better understanding of how everything works and when you should predict that the values will go up. The knowledge you gain about money will be useful for you for the rest of your life.
So, while you trade online, these are all the benefits you will be enjoying out of it.