Advantages and disadvantages of Online Trading and online stock trading.

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Advantages and disadvantages of Online Trading
and Online Stock Trading.
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Introduction to Online Trading
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• Online trading (or Internet trading) is the
  buying and selling of securities through the
  internet.
• It is fast becoming one of the best ways to
  invest in the stock market.
• The Stock Market is a place where people from all
  over the world come to buy and sell stocks, which
  are an asset and an ownership in a company.
• Stock trading in India started permitting outside
  investments only in the 1990s.

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• Information technology is used to bring together
  buyers and sellers through an electronic trading
  platform and network to create virtual market
  places.
• Examples of such market places are NASDAQ, NYSE
  Arca and Globex which are also known as
  electronic communication networks (ECNs).
• You don't need to have a personal broker or a
  disposable fortune to do trading, and most
  analysts agree that average people trading stock
  is no longer a sign of impending doom.

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• Online trading is fast paced and efficient as
  compared to the older floor trading and phone
  trading.
• But blunders and cancelled trades do still occur
  in online stock trading.
• Opening an online trading account is also quick
  and easy making the entire process highly
  effective.

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Advantages of Online Trading
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• Online stock trading and online share trading has
  given way to paperless transactions.
• It eliminates manual order entry and paper trail.
  
• Your share certificates get deposited in
  electronic format (Demat) in your web trade
  account.
• It increases accuracy and speed of placing order.
  
• Stock market trading enables better record
  keeping by investors, brokers and regulatory
  organizations.

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• Investors can make more informed investment
  decisions because they have access to vast
  amounts of data in online depositories.
• It facilitates extended hours of trading.
• Orders can also be placed offline during
  non-market hours.
• Investors are benefited with complete control of
  investing decisions.

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Disadvantages of Online Trading
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• Low internet speed could lead to technical error
  or system failure due to which the investor may
  suffer a huge loss.
• Some online brokers charge apathy fees from
  traders.
• If you trust them, without any enquiry, it could
  prove to be a risk.
• Online trading empowers investors with the do it
  yourself attitude that could prove to be a loss
  in certain scenarios.
• They could make uninformed mistakes owing to lack
  of knowledge.

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• The aforementioned guide rightly structures out
  the definition of online trading and its numerous
  advantages and disadvantages.
• Read about all the varied nuances of online
  trading online to understand how it works and how
  you can be a part of it.

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Thank You