About Online Trading

Santri Alat - About Online Trading - The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!

We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone. 

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks. 

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online. 

You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner. 

It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.

Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!

Advantages of Online Trading

The question is, why are many traders switching from offline trading to online trading? In short, online trading is a method that is considered much simpler. Reporting from The Seattle Times, here are some of the advantages of online trading when compared to offline trading.

Lower Costs

Transaction fees charged when online trading are usually relatively lower than offline trading.

More Flexible

As a trader, you definitely understand that time is very important and determines the success of your trading activities. By trading online, you can save more time and transportation costs to the trading floor and allocate that time to monitor the market and carry out market analysis.

Can Monitor Investments in Real-Time

Online trading is available on many sites, and these sites will usually provide stock price monitoring features or other trading information that can make it easier for traders to carry out market analysis. So, you can monitor your investment continuously in real-time and not lose momentum in opening or closing positions. The profits obtained can also be maximized.

Before discussing how online trading works, you need to first know how offline trading works on the trading floor so you can differentiate between the two systems.

How Offline Trading Works

In offline trading activities, traders must call the broker first to submit a request to buy securities for a certain amount if they want to open a position.

The broker will then tell you what the market price of the security in question is and will confirm your order. When you have confirmed it, you need to pay the broker's fee so that the order can be placed immediately on the exchange.

How Online Trading Works

Meanwhile, the system is quite different compared to offline trading. You no longer need to make an appointment with a broker and can trade more flexibly.

You only need to choose the trading platform you want to use, place an order on the online platform, then the order will be automatically executed by the platform concerned.

Online trading is a clear example of the positive impact of technological developments. There are various types of assets that can be traded. One thing that is currently popular with the public is crypto trading. Based on information from Young and The Invested, reported by CoinMarketCap, the total value of the crypto market cap reached $994 billion and is in the 20th largest GDP position in the world.