Online share trading is one of the most popular investment methods that every investor wants to learn about.
What is online share trading?
Share trading like Stock trading, Future trading, Options trading, Commodity trading etc that is done via a trading account over the internet is called online share trading. An intraday trading time account is usually opened with the help of a Stock Broker but the online share trading can be done directly by the investor over the internet. This is done using the Trading platform developed by the Broker and can even be done on the mobile using apps.
Major benefits of online share trading:
Online share trading has revolutionized the way we trade in the stock exchanges and it has several benefits. Here are the major benefits of online share trading:
Secure Transactions using Robust Technology
Online share trading is secure because it harnesses latest technology to safely place a buy or sell for a stock or future trading. With huge volumes of trade going on every minute, one of the major worries for investors is if their money is safe and the trading is secure. In online share trading, after you open a trading account with your broker, one of the benefits is the secure trading platform they provide to start the trading online.
Saves Time and Effort needed
Unlike paper transactions, the entire process is digitized right from trading account creation to the actual trading. Because of this digitization, investors save a lot of time and effort. Before online share trading was implemented, the share trading was cumbersome, time consuming and resulted in losses because of delays in the actual trade being carried out.
Now, it is very simple to place a buy or a sell. Investors have access to most information at their fingertips on the trading platform itself and so are able to quickly decide to make the trade. This saves a lot of time and effort.
Cuts out the Middlemen and Reduces Cost
With share trading platform, investors can directly place the orders rather than go through the Brokers or middlemen. All it takes is a trading account and a login to a web trading platform. Most share trading platforms now provide latest trend analysis, stock performances over the years and live price charts, so they do not even need the direct assistance of brokers to make a decision on which stock to buy or sell. Thus, it cuts the cost of paying the brokers and involving them for every trade.
Less Error Prone
The shares traded online have much less margin for actual mistakes or errors since it is not done by a human but directly carried out online. Unless the investors themselves make a mistake in the number of shares to buy or sell or the price at which they want to make a trade, there is almost no chance of an error happening in executing the desired trade online.
This makes it much less error prone and hence is very reliable.
Ease of Monitoring complete Portfolio
Using the web trading platform and trading apps of your broker for online share trading, the investor also gets to easily monitor the complete portfolio. They can get a good idea of which shares are performing well and which ones are performing poorly in a single place. This way, there is no need for cumbersome paper reports and analysis. Everything needed for portfolio analysis is made available online.
Flexibility in accessing account and doing online trading
With mobile apps for online trading, the investors are no longer tied to their desktop or laptop for online share trading. Now, with the click of a button on their mobile trading app, they can place a buy or sell while on the go. Provided they have internet connection, they can execute their option trading tips transactions from anywhere in the world.
The investors need not worry about sudden travel plans or hectic schedules at work. They can easily carry out the trades even while travelling.
There are many benefits to online share trading. But we must remember to carry out the trading from a secure network and avoid public PCs or cyber cafes. Try the mobile app provided by your Broker before you decide to go ahead. In the fast-paced digital world, trading platform and app make all the difference in online share trading.