Online Trading vs. Offline Trading - A logical comparison

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Published: 18th August 2010
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Internet doesnít really change everything but it definitely changes the way we work. We all learn from the old-style businesses that we have done in the past such as offline trading. With the advent of internet we have seen a great deal of improvement in the way trading takes place through online trading. It is one of the most affordable means of trading now. You necessarily donít have to be present at a Stock Exchange center to know what is going on in the market. Here you are independent and self-sufficient with knowledge as well as experience.

Your brokerage firm does all that is necessary for you to enter into the market as an investor. An individual who would be able to conduct accurate research and has good money management skills will always succeed with the stock trading online. There have been many benefits rather than limitations in online trading when compared to an offline trading. The first being the costs involved in hiring a broker and paying him. In offline trading the costs of the broker are comparatively higher. You have to pay them on every trade you do. And you cannot be a day trader when you are trading offline. It becomes very expensive for you to pay the broker on every transaction as a day trader.

In online trading you do not have to pay the broker anything at all. You would save a lot on the trading commissions. The major difference between the two is the involvement of middlemen. While in offline trading you are surrounded by brokers, in online trading brokers enter only when you need them. The most logical benefits are that you as an online trader are taking control of your own decisions and your own future. You can call your own shot numerous times or just one time and then you can call it a day. There have been lots of changes in trade ever since trading went online. Anyone could practically invest in a company of their choice. And they are wise enough to invest in a company that can control the market.

These companies offer various innovative investment options for a variety of online traders. This happens with a lot of research on the market with the help of various statistical tools. This is absolutely impossible in offline trading. The investor will also be able to trade in forex markets and can purchase a large sum of foreign currency by paying the entire price. This is known as margin trading. This gives the investor a buying power which is huge and the outcome i.e. the profits are also huge. In offline trading there is always monopoly and there is hardly a chance to become a margin trader.

While we know that internet has brought a revolution in every field that exists, it has done a great deal of help to trading as well. Stock trading online is absolutely paper less. The entire activity takes place on a common platform which can be accessed by investors online. Share trading is done by brokers at one corner of the place and the investor interacts with the broker from the other corner of the world. Online trading or eTrade is also interactive. It is not just one side reacting to the changes. Whatever is happening on the account is visible to both the broker as well as the investor - while in offline trading you tend to wait for your broker to do your errands for you.

One of the most reasonable advantages in online trading is that you can watch the international stock markets move right from your doorstep. You donít have to call anyone or wait for the newspaper the next day to check out the international listings. You can even trade at the same time from another part of the world. If you are still an offline trader, it would still remain a dream for you to explore the international markets.

Online trading is electronic which means that the trade of securities, bonds, shares, stock, debentures, certificates, etc. is through an online broker. This is the modern day world trading. Bill Gates truly said with his experience that Internet will help achieve "Friction free Capitalism" by putting buyer and seller in direct contact and providing more information to both about each other. This is what practically happens while you do stock trading online.

Daniel Chen has been researching and writing about finding interesting Home Business Opportunity. He is highly interested in the housing market and online trading. There he specializes his writing in finding ways to incorporate working at home with online stock exchanges and Real Estate Investing.

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