Internet Trading In India

Internet Trading:- The act of placing buy/sell orders for financial securities and/or currencies with the use of a brokerage’s internet-based proprietary trading platforms.

Internet Trading Advantage and Disadvantage.

Advantages Of Online Trading.

  • Lower brokerage and fees (in almost all cases). Fees can be even lower if you’re a frequent trader.
  • More control on your transactions. you can decide exactly what price and time you wish to buy, down to the fraction of a second, as well as change your order whenever you feel like. No waiting on the phone or having to go in person to a branch.
  • More flexibility in terms of being able to see what options are available to you and scan the market.
  • With online trading, you often have access to lower-fee mutual fund products since you are your own advisor and nobody gets a cut along the way.
  • Handy tools to model interest earned, yield, returns etc., as well as financial screeners to research stocks and bonds.
  • Good research tools and newsfeeds on each stock, which you can delve deeper into in your own time. A conventional offline broker may not always be able or willing to offer you all of these. you can also get many of these for free from sites like Marketwatch, etc.
  • Real-time values of your portfolio.
  • If your online broker offers Level 2 quotes in real time, you can actually see what the bid and ask prices and volumes are and get a sense of where and how your order will fit in.
  • Some online brokerages have access to research reports prepared by Standard and Poors and such, and these can give you some really good insight.

Disadvantages Of Online Trading.

  • you’re on your own; you have to decide if it’s a good or bad buy/sell. you have no advisor to help you. If you’re not a pro, your risks may be higher.
  • If you’re not careful, you could end up trading too much just because it’s so easy too but it’s in your hands to control.
  • The advantages and independence of online trading far outweigh the disadvantages, but start slow, find a good brokerage with a good reputation and take it a step at a time till you feel confident enough and know the risks and rewards well. There’s no reason why you shouldn’t have a mix of online and offline holdings.

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Internet trading in India using online trading platform and computers
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