| With the emergence of the internet in everyday | | | | coming from the New York Stock Exchange. You |
| business, the significance of the online stock market | | | | have a pre-made list of stocks that you want to |
| trading broker has gone up. With the ease of use | | | | watch streaming across the screen. As soon as you |
| and the relatively cheap prices offered, online trading | | | | see something you like, you can simply go into your |
| is growing exponentially. What are some of the | | | | online trading account and click "buy". The stock will |
| benefits of trading online? | | | | be purchased nearly simultaneously and you didn't |
| Convenience is the biggest thing that is offered by | | | | lose hardly anything from the time you decided to |
| online trading. With the traditional form of trading, | | | | buy it. This can make the difference in a good chunk |
| you were much more tied down. First of all, the | | | | of money in some cases. |
| information that you got was probably out of date. | | | | Another advantage to online trading is that it is |
| You had to read the Wall Street Journal every | | | | usually cheaper. With the growth of some of the |
| morning or watch the news to get your stock prices. | | | | more popular online trading companies like Scottrade |
| You may have had access to a stock ticker, but | | | | and E-Trade, you can trade for a cheaper price. |
| most people didn't. Then if you decided that you | | | | Some offers come out like four or five dollars per |
| wanted to buy or sell a certain stock, you put in a | | | | trade with online trading companies. If you were to |
| phone call to your stock broker. If your stock broker | | | | make the same trade with a stock broker, you |
| was out of the office, you had to wait on a return | | | | would probably pay much more than that. Your stock |
| phone call. Then once your stock broker took down | | | | broker has to make a living and they do that by you |
| the order, they in turn placed a call to New York to | | | | making trades. Therefore, they have to get their |
| buy your stock. By the time all of this happened, the | | | | money from you when they can. |
| price of your stock had fluctuated greatly. It might | | | | Overall, online trading can be a great tool. If you don't |
| not be as great of a deal as you thought by the | | | | need the face-to-face contact, an online stock |
| time you actually bought it. The traditional form of | | | | market trading broker might be the way to go. They |
| buying stocks isn't as convenient or quick as it could | | | | can offer you great advice, up-to-the-minute |
| be. | | | | information, and cheaper prices. They operate under |
| Now let's look at what is available through online | | | | the economies of scale strategy and try to get as |
| trading. You're sitting in the comfort of your pajamas | | | | many clients as possible. You probably won't get as |
| and having a cup of coffee. You're in front of your | | | | much personalized attention, but you will get all of |
| computer and you have up to the second stats | | | | the other benefits. |