Advantages And Disadvantages Of Online Trading | Info For Beginners

We have been in a world where everything is done online and financial markets are not far behind as online trading has replaced offline trading and gone are the days when the broker will call every 10 minutes so that the stock price of the check buy or sell stocks at a particular price Online trading has ensured that you can buy or sell order from anywhere in the world It refers to an investor or trader buying and selling stock, futures, options, bonds or any other financial security through the internet. Before you start online trading you should read advantages and disadvantages of online trading -

Convenience and Flexibility

The biggest advantage of online trading is the convenience factor, because all the brokers are online trading application nowadays. Where it is a lot of flexibility as you can put orders from anywhere

No Dependence on Broker

Another advantage of online trading is that one is not dependent on the broker for putting orders as sometimes it may happen that the broker is unavailable, then you will not be able to buy or sell the stock at the desired price. loss So online trading has ensured that you get the maximum profit as there is no time lag between you seeing the price and order executing which is the case when the broker is involved.

Cheap and Unbiased

It is cheap because when you put orders through the broker they charge from you, you are not allowed to pay every fees for fees, rather than monthly or annual fees. Besides, it is also a unbiased way of trading because when you ask the broker to buy or sell particular stock or he will provide his or her inputs related to that stock which is biased leading to change in your decision.

Risk of Excessive Trading

The biggest disadvantage of online trading is that you end up in doing excessive trading because what is in the form of trading is that since you watch continu. not the case with off-line traders where you ask the broker to put order at a specific price and when stock quotas that price brokers execute that order and hence the issue of excessive trading arises.

No Scope of Guidance from Broker

Another limitation of online trading is that an individual will never be able to develop personal relationships with the broker who can be great help when you are in doubt. 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.

Error and Connectivity Problems

Another problem with this type of trading is that people are not brokers that they can make mistakes in money. Apart from this, it is dependent on internet and if there is some connectivity problem then you will be in trouble as you are not the case with brokers. any internet

As one can see the above online trading has advantages as well as disadvantages and if you are a technology savvy as well as financial savvy than you should go online for trading and if you have neither two qualities of lack of financial savvy or technology savvy to you.