Posted by Pamela Swift in Business Trends
Online trading has proven to be both a blessing and a curse for the investors all around the world. By enabling them to acquire and sell financial assets from virtually anywhere on the planet, it has effectively revolutionized the way business is done in the 21st century, although this does not come without its own share of troubles. Trading has become faster and more available than ever, albeit at a great cost in terms of security and finances.
Advantages of Online Trading
Of all the advantages online trading has brought to the table, what stands out the most is the sheer convenience that comes with being able to trade at one’s leisure. At last, traders are no longer bound to their brokers. As the 21st century connectivity kicks in, one no longer has to stay within running distance of a landline so they can phone orders to their brokers, hoping they get lucky. Nowadays, market opportunities can be exploited in real time, without having to make direct contact with the broker – thanks to online trading. Aside from that, online accounts keep getting easier to open and manage, making brokers all but redundant, for the most part. In fact, since online trading is controlled by the computers, online accounts can be accessed at any given moment. Furthermore, online safety has reached a point where traders no longer have to worry about a teenager with a laptop ruining their entire portfolio; in fact, savvy traders can amass a sizable fortune in a relatively short amount of time, without ever having to worry about online safety. In addition, online trading actually rewards zealous traders with lower commissions, costs and various perks. The best part is that virtually anyone can join in on the action – all it takes is some spare money to get started, the desire to invest and a computer with an internet connection. Users can get an update on a daily basis on the brand’s social pages. Optionsxo is sharing knowledge on their twitter page every day on the beginning of the trading day.
Disadvantages of Online Trading
As convenient as online trading gets, people often neglect the fact that there is a price for convenience – any convenience. In this particular instance, the convenience is the price; or rather, it can make traders prone to risks they might not otherwise take or even have access to. The costs of doing business are lower indeed, but people often forget that they are risking real money, instead of playing a fancy video game. Make no mistake, there is a degree of risk to any trade, online or otherwise, but this way traders can make more of them and that means more risk by default. And since the broker’s involvement has been reduced to a minimum, there is no one to hold your hand out there. Furthermore, by relying on all this technology, online traders leave themselves open to all sorts of mechanical failures and software glitches that can be quite costly. To make the matters worse, there is no meaningful way a trader can influence these things. Besides, as critics love to point out, the old dependency on phones and landlines has been replaced by a similar dependency, albeit on another medium – the Internet. The connectivity itself has been improved, but now there are even more things that can go wrong: from failures to malicious attacks to outright sabotage, the sheer number of factors means online safety should never be taken for granted.
While online trading certainly has its flaws, the numerous advantages make the future of said trading all but assured. In fact, online trading continues to grow and develop as a concept faster than ever. Yes, this will inevitably involve some growing pains, but in the end, savvy traders will carry the day, while those less able will have to rely on their good fortune. After all, the convenience and versatility that online trading has introduced cannot be negated that easily; being able to trade on the go – quickly, efficiently and (relatively) safely will always trump the occasional mishap or a rash judgment. And even if said flaws are not being rectified fast enough, the ease with which virtually anyone can join in will supply a steady influx of newcomers that outpaces the loss of disillusioned traders who have learned a valuable life lesson – albeit the hard way.