Advantages of Online Trading

Video Transcript

"Hello my name is Luis Estrada and I am a software developer. In this video we will talk about the advantages of online trading and another way to make money online is buying and selling stocks online. Online trading has given anyone who has a computer enough money to open an account and a good financial history the ability to invest in the stock market. You don't need a personal broker or a disposable fortune to do it. The market has become much more accessible but that doesn't mean you should take online trading lightly. In traditional trading trades are executed through a broker or via phone or any other communicating method. The broker assists the trader in the whole trading process. Brokers collect and use information for making better trading decisions. In return for the service they charge commissions on traders which is often very high. The whole process is usually very slow taking hours to execute a single trade. In online trading trades are executed through an online trading platform provided by an online broker. The broker through its website offers the trader to market data, news, charts, and alerts. All trading decisions are made by the trader himself using the marketing information he has. All trades are executed in real time in return for their services online brokers charge trading commissions which are often much lower than traditional trading. Advantages of online trading include a fully automated trading process which is broker independent, informed decision making and access to advanced trading tools, direct control of traders and their trading portfolio. Faster trading execution which is crucial in day trading and swing trading, discount commission rates, low capital requirements, accounts that are easy to open and to manage and most importantly ubiquity meaning that you can trade from anywhere in the world. Online trading favors active traders who want to make quick and frequent trades who demand lesser commission rates and who trade in bulk on leverage. The fees involved in trading vary considerably from broker to broker. Some online brokers may also charge inactivity fees on traders. A good example of an onling trading company is Ameritrade. This company charges a $10 per internet equity trade whether you buy as little as 100 shares or as many as 10,000 shares. I am Luis Estrada and I have just showed you how to make money with your websites."