Published on June 13th, 2015 | by Pete1
The Benefits and Drawbacks of Online Trading Using Various Platforms
Trading online is a big decision as it involves your hard earned money. Many people who jump into the pool of online trading without having any prior knowledge regarding the subject, usually end up making big losses. It is better to study all the aspects of online trading and to know what benefits and drawbacks are associated with it, before you plan to put your money at stake. Discussed below are some of the benefits and drawbacks of trading online, using a variety of trading platforms.
Benefits of Trading Online
Low Cost Trading – Before online trading became common, people used to trade stocks through personal stock brokers. These brokers used to charge a considerable amount in fees on the basis of their experience and expertise. With online trading, people can trade on their own without a broker.
Moreover, the many platforms available online like MetaTrader4 and Trader Pro charge a lot less than skilled brokers and can save you a good amount of money. Websites such as ETX Capital offer these platforms at reasonable rates to online traders.
Trade 24/7 – The stock market is continuously changing and you cannot afford to miss an opportunity to make a profitable trade. The biggest benefit of online trading is that it does not have any time constraints. You can trade at any time and from anywhere. Unlike the case with traditional personal brokers, there is no time lag when you trade online.
Tools and Information – The trading platforms available online offer a wealth of information to keep you informed and updated regarding the latest trends as well as offering useful tips to enable you to learn how to trade profitably online. In addition to that, the many tools offered by platforms like MetaTrader4; help you monitor and analyse the shifting trends of the stock market and allow you to make wise investments and trading decisions without depending on a personal broker.
No Minimum Financial Requirements – Initially, when personal brokers used to trade for people, they only worked with clients who had thousands of dollars in spare change and were willing to invest a good amount for trading purposes. Many of us do not have stashes of money lying around and still want to trade. With online trading, you can now trade in stocks even if you want to invest an amount that is less than $100.
Drawbacks of Trading Online
There are also some drawbacks to online trading. Only those people who have the appropriate knowledge on how to operate trading platforms find them easy. Those who jump in headfirst into online trading without any information are sure to fail and lose their money.
Successful online traders read a number of books, take online classes and spend a good amount of their days going through tutorials that help them learn how to use online platforms. The stock market is very volatile and to make lucrative trading decisions, one needs to be well informed.
Before choosing a trading platform on ETX Capital, make sure to read up on them to see which one would be suitable for your trading needs.