Are you an offline trader who still relies on the traditional method of trading with the help of a broker? Stock trading has come a long way. Today, there are many online trading portals that offer seamless trading experience.
Some people, however, still prefer to go with offline trading which is trading with the help of a broker as they believe that online trading is not safe. Let’s first try to understand the two types of trading from a closer angle.
What is online trading?
An online trading is done on a trading platform that allows an individual to trade without the support of a broker. Through the online trading platform, you can buy or sell stocks, currencies, futures and bonds on-the-go using a laptop or a CFD trading app. There are many online trading platform providers out there that offer excellent service allowing a trader to trade without any security concerns.
What is offline Trading?
In offline trading, trading is done with the help of a broker. All the trading is routed through a broker, and the trader has to pay the broker’s fees. The problem with offline trading is that you need to get in touch with the broker’s office every day in order to execute the trade. If your trader is not available for a day or two, you won’t be able to trade for that day.
Benefits of Online Trading
1. Eliminates Middlemen or Brokers
The main advantage of online trading is that you can easily eliminate the role of middlemen or brokers. For years, brokers played a very important role in trading and it was not possible to think of a way to trade without their help. By trading through an online trading portal or online trading app, you can buy or sell stocks with a few clicks of the mouse.
2. Online Trading is the Least Expensive
When you trade with the help of a broker, you will have to pay a huge amount as brokerage. But, when you trade online, you don’t have to pay that much. This means every year you can save a lot of money and use that money for buying stocks.
3. Control for the Investor
Through online trading, you can execute your trade whenever and wherever you want. This means, even when you are travelling, you can execute your trade without any difficulty by using your laptop or Smartphone. The investor has all the control over the shares he or she holds and can review the status of the shares easily. In offline trading, on the other hand, the control with the broker who is executing the trade on your behalf.
4. Expert Help
When you trade through a well established online trading platform, you will have access to many sophisticated reports and tools that will help you analyze the market well and select the best shares for trading. You can get applications powered by artificial intelligence that open new trading horizons. Through these trading apps, you can review the most popular stocks and commodities with a single click or tap.
5. Faster Transactions
In trading, time matters. Markets are always going up and down. If you don’t trade fast, you might lose the opportunity to make some money. When you trade with the help of a broker, most of the time, you are not able to take advantage of these highs and lows as the transaction time is more. You have to wait for the broker to execute the trade and this means you may end up losing valuable time and money. But, through online trading, you can execute your trading anytime without anyone’s help. With a few clicks, you can execute your trade and complete the transaction. You can buy stocks when prices go down and you can sell your stocks when the price hits the roof.
Due to the numerous benefits of online trading, more and more people are selecting online trading platforms. CFD Trading app by Capital.com is a financial app that helps you trade on the go and is powered by artificial intelligence. It features stocks of the leading companies on your mobile device and provides useful information through the Smart Feed feature. With the help of this trading app, you will never miss out on a good opportunity. Another their financial education app “Investmate” will offer you helpful tips to make your learning curve less steep.