3 Simple Reasons Why you Need to Start Trading Online Today
There are several reasons to begin trading online now, and I want to address three of them. Trading online has existed for some years now. Before online trading, people would need to phone their broker for each trade. This, for the active trader, was a time-consuming process and likely kept most people out of active trading. With the invention of the net, access to trading grew exponentially.
The reasons you want to start trading online today
Reduced Costs: Online trading is less costly than speaking with a broker. Fewer people involved in any trade will bring down the cost. Typically in case, you trade by speaking with a broker you’re likely to pay on average between $20 and up to $50 for the transaction. The range of price is dependent upon the agent, some shares, and kind of order. Online trades can be as low as zero (usually with a minimum balance or minimum paid transactions) to approximately $10 for larger orders.
Faster Executions: Talking to a broker is fine, and from my experience, they’ll get your order in fast but not as fast as you can do it yourself. Consider it. When you are talking to a broker what do you think they are doing? That’s right; they are taking a look at a screen that is probably a lot like yours and inputting the same order you would have entered yourself.
Access to after-hours trading
Access to After-Hours Trading: What happens to the agent at the end of the day? Many of them go home and while there may be a night shift why take the risk. Having online access means that you can get in and out of positions round the clock. So if information comes out, you will have the ability to shift your rankings around right then. One warning here though is sure the online broker offers after trading and does not just assume it’s there.
Brokers Like Online Traders
Another reason that commissions are lower for trading online is there is less risk to the agent. You see if you all a broker and enter an order verbally there is that chance that he’s going to make a mistake. If that occurs, and the market moves they need to pay for any losses you may suffer but can’t keep any gains. This is the biggest thing brokers fear because one mistake can wipe out an entire year worth of commissions. Online trading reduces this risk substantially.
Trading Online is a no-brainer
So as you can see moving to start trading online today make a good deal of sense. It is a win for you as the trader with lower prices, quicker executions, and after an hour’s access. So get out those web browsers and start looking into how you can begin trading online today.