Online trading is simple and straightforward. For the most part it does not require any kind of in-depth knowledge of the market; or advanced degrees to execute it adequately.
We say, for the most part, because anyone can do it. However, obtaining results in the long term will require a great effort on your part to learn and understand the market.
Fortunately, the new era of electronic trading, which is constantly taking place with all the latest developments in cyber communications, has made it easier for traders to place their trades.
Such advances are constantly taken advantage of by platforms such as: TdAmeritrade, Optionxpress, CMC Markets or Trading 212.
These online trading platforms facilitate a massive number of high-speed transactions every day; helping millions of investors. The only thing you need to be a trader and be able to buy and sell shares on the New York Stock Exchange; It is a computer and internet connection.
How was trading before?
People could only trade through brokers. Everything was done physically or through phone calls. If you wanted, for example, to buy 20 shares of IBM, you would have to call the broker and talk to your specialist agent about a purchase order request.
Your stockbroker would inform you of the market price and other relevant details; and you would decide if said transaction was worth it before declining or confirming.
Your investment broker should also confirm what commission costs would follow the trade. After all this rather lengthy administrative effort had been carried out, only then would the broker launch its trade through a system that was connected to the exchanges; like NASDAQ or the New York Stock Exchange.
You would then receive a letter in the mail confirming your transaction, as well as a quarterly account statement listing your overall investments. Any other cash transfer to enjoy your winnings was processed by calling your agent once more.
How is trading done now?
As you can see, this process was really cumbersome and lengthy. Currently buying and selling shares is a matter of seconds.
Today, thanks to the internet and the information age, investors have started flocking to online trading platforms; They are provided by intermediaries for the procession almost completely independent of the investment.
Such online trading platforms are there to provide tools that the keen trader (Employees, students and even housewives) and the investor can take full advantage of.
Now it is completely free to buy and sell, analyze information, read all the news related to the market; and obviously related to your actions. You can not only do it with shares, but also with currencies, bonds, commodities, etc.
Most brokers will be affiliated with banks, which means that even more convenience can be added by having your investment accounts connected to your bank accounts.
This obviously means that you can now make transfers in a completely simple and straightforward way. All within the same system.
Both the investor and the brokers have realized the reduction of costs with the beginning of online operations.
Brokers are now not as focused on commissions. Rather, some charge a fixed fee per transaction. With all these facilities more and more people are venturing into the world of trading; Therefore, the number of transactions has increased so much that it makes it more practical to charge per transaction.
Now that you know this, wouldn’t you like to start learning a little more about investing in the New York Stock Exchange? It is something you can do from anywhere in the world.
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