What Are the Main Advantages of Online Trading?

canstockphoto7436895Online trading has become more and more accessible, easy, and fast. It allows you to be independent and to have a more flexible schedule. There are a number of free resources to help educate yourself online about the different trading strategies, financial assets, how to place an order, what to take into account when trading online, how to improve your money management, and much more.

Why are so many people getting into online trading?

  1. Better control and greater flexibility. You are better able to control your investments compared to using an intermediary to initiate a trade. You’re more flexible, because you can execute your trades immediately using your trading platform. You can then better manage your time, and trade whenever you like as long as the markets are open.
  2. Less brokerage bias. Because you are making your own trading decisions, you are eliminating the bias that can occur when engaging with your broker. Yes, sometimes the advice they give can be useful, but remember, your goals and your broker’s goals will not always be in alignment. Today, you can open BUY and SELL positions without ever speaking to your broker.
  3. Lower fees. The transaction costs and high fees associated with brokerage firms are reduced substantially when using an e-trading solution. The cost of executing an order yourself is not as high as the fees charged when a broker executes your trades. While trading currencies or indices, the online brokers’ commissions are calculated from the spread (difference between the BUY and SELL price), which can be as small as a few dollars.
  4. Better access to online tools. Today’s online brokers offer a vast suite of trading/money management tools, in order to assist traders in making better decisions and to better manage their money. For example, MassInsights™ Technology from UFX trading, gives traders access to the most important trading trends while summing up important market news.
  1. Real-time access to monitor your investment. Most trading sites will provide real-time financial asset quotes, so you can monitor the price evolution on a number of asset types (currencies, stocks, indices, ETF, etc.). Moreover, traders also have real-time access to their online account, allowing them to follow their investment at any time.