Advantages of the Online Trading

In the modern era, people play the online market because they feel they can get the following benefits by doing the online trading.

• Convenience

Doing the online trading is accessible and comfortable, as the online trading saves the time from travelling from one place to another for doing the trading of shares, moreover can make money by sitting at the home (Advantages of Online Trading).

• Cheaper

The first benefit of doing the online trading is the well-known – lower cost as well as deduction in the cost of the transactions (What Are the Benefits of Online Trading?).

• Secure

Online trading is the more secure than the offline trading or doing trading by visiting the corporations. However, there is the hacking of the information which the users put online to trade but there are some official websites to do the trading which are made by the corporations to do the online trading especially. This is the responsibility of the users that if the user doing the transactions on the internet then the brokerage must use the high end encryptions (Is Online Trading Secure?).

Monitor their investment simultaneously

People buy the shares while trading online as per their suitability. Furthermore, investors can know their investments works throughout the day in the corporations and can know the profit or loss by calculating on any electronic devices (Benefits of Online Trading).

Eliminates the need of the middleman

When the people do the online trading then there is no need of another individual to elaborate that

how to buy the shares or which is the best company to invest the money for the investors. As the

investing can be done via the ratings or by knowing the goodwill of the company in the market

 (Benefits of Online Trading).

References

Advantages of Online Trading. n.d. website. <https://www.stockadda.com/blogs/4-advantages-of-online-trading&gt;.

Benefits of Online Trading. n.d. web site. <https://www.5paisa.com/articles/7-benefits-of-online-trading&gt;.

Is Online Trading Secure? n.d. website. <https://www.fool.com/investing/brokerage/is-online-trading-secure.aspx&gt;.

Online Trading Academy. n.d. website. <https://www.tradingacademy.com/&gt;.

What Are the Benefits of Online Trading? n.d. web site. <https://www.nerdwallet.com/blog/investing/benefits-online-trading/&gt;.

Drawbacks of Online Trading: –

There are various disadvantages of Online trading which are described as follows: –

• Risk of Excessive Trading: –

The biggest disadvantage of online trading is that you may end up in doing excessive trading because what happens in this type of trading is that since you constantly watch price you end up doing those traders also which you shouldn’t have done resulting in loss which is not the case with offline traders where you ask the broker to put order at particular price and when stock reaches that price brokers executes that order and hence the issue of excessive trading never arises (Techie, 2018).

• No scope of Guidance from Broker: –

Another limitation of online trading is that an individual will never be able to develop personal relations with the broker who can be of great help when you are in doubt as many brokers give advice regarding stocks which can result in profits for both investors as well as a trader. In simple words, if you have a sound financial knowledge and can take a decision on your own then only you should go for online trading (Techie, 2018).

• Error & Connectivity Problems: –

Another problem with this type of trading is that since people are not brokers, they can make mistakes in putting orders which can lead to big losses for investor or trader. Besides, it is dependent on internet and if there is some connectivity problem then you will be in trouble as you will not be able to place the order which is not the case with brokers where you can put orders on the telephone and it does not require any internet (Techie, 2018).

References

Techie, v. (2018, June 28). AdvantagesNDisadvvantages. Retrieved February 23, 2020