IMPACTS OF GETTING DIGITAL IN STOCKS MARKET

On the eve of the digital age, share trading was predominantly conducted through brokerage firms and by brokers. This mainly gave complete control of the trading process to the brokers. But with the digital age, every sector of the economy has gone online. Share trading is no exception. This move has enabled traders to explore a whole new with tremendous opportunities.

Taking the trading process online has revolutionized the way we conduct share trading. It has simplified the whole process. Other benefits accruing to online trading, and that differentiate it from offline trading, include:

Independence – offline trading requires one to be in constant communication with the broker to facilitate trading. Online trading allows users to place their orders via the Internet as compared to offline trading which promotes dependence on broking firms.

Online trading is convenient – in the digital age that we live in, almost everyone has a portable Internet connected device. This makes connecting to online trading very easy for a vast majority of the population as compared to offline trading which requires a trader to communicate with the broker every time they want to trade.

It is affordable – online trading broking firms charge relatively affordable trading fees to use their online platform and use their services. Offline brokers and broking firms charge traders considerably high fees for facilitating the share trading.

It is efficient – as a trader, you can find everything you need to facilitate an informed trading process, i.e., research sources with updated trading reports and trading, on a single online platform. With offline trading, you usually have to do your research from different independent sources before contacting your trader to make the trade.

It is secure – the possibility of falling victim to fraud are eliminated through online trading as the funds in a trading account are held by a reliable, credible financial institution and can only be used by the trader. In offline trading, many cases have been experienced where a broker has made financially detrimental trading decisions without a trader’s permission.

Guidance – offline trading relies heavily on word of mouth advice from the broker on which shares are best to trade in. Online trading makes a wealth of up to date, verifiable and reliable financial reports available to help you make an informed decision on which shares to trade in.

Saves money – online trading allows you to save more compared to offline trading. The minimum capital required to begin trading online is significantly lower compared to those required by broking firms. You are also not billed for the calls you make, as you are not communicating with a broker.

Online trading is flexible – online trading gives you the opportunity to trade from anywhere and everywhere, at all hours of the day (global shares). With offline trading, you are restricted to trading at specific locations and at specific times, i.e., only during business hours.

When it comes to choosing which trading option is best to use, the decision is unique to each and dependent on preference. However, from the above, it is clear to see that online share trading is not only technologically up to date but it also comes with a wealth of opportunities not found through offline trading.