Trading on-line or Direct Access Trading (DAT), financial instruments has become very popular over the last five years. Almost all financial instruments available, including online trading of shares, bonds, futures, options, ETFs, forex currencies, and investment funds. Trading online is different in many ways from traditional practices and different strategies are needed to benefit from the market.
In traditional commerce, the operations are performed by aBrokers by phone or through any other means of communication. The broker assists the dealer in the whole negotiation process and to collect and use information for better trading decisions. In exchange for this service they charge fees for merchants, which is often very high. The whole process is very slow, in general, and run on a single hour of trading. Long-term investors, the reduced number of operations that are the major beneficiaries.
In online commerce, any transaction in an online versionTrading (commercial software) by the broker on-line for free. The broker, through its platform provides the operator with access to market data, news, charts and alerts. Day traders, real-time data on 1.5, Level 2 or Level 3 Access to the market. All trading decisions will be the operators themselves, with regard to market information, has done. Often traders can more than one product, market and / or an ECN with her single account and software. All storesRunning (almost) in real time. In return for their services for free on-line (broker trading fees that is often very low - Discount Commission Schedule), and use the software.
Advantages of e-commerce, trading process fully electronic, the independent broker for informed decision making and access to advanced tools for trading, traders have direct control over their trading book, the ability to more markets and / or commercial products or market data in real time, fasterUtilization of Commerce of day trading and swing trading and low fees, choice of routing orders to market makers or specialists other is fundamental, low capital requirements, high degree of leverage offered by brokers to trade on margin, easy-to - account open and easy to manage account and no geographical boundaries. Online trading favors active players who are quick and frequent trades that rates of lower demand from the Commission and want to use in large quantities for trade. But trading on-line is nothere for all dealers.
The disadvantages of online trading are needed for specific activities and represents the minimum required by the broker to satisfy an increased risk if the big deals done on board, monthly fees to use the software, the chances of loss of trade due to mechanical / errors platform and must be on a high-speed Internet connection. Online retailers are fully responsible for their business decisions and often there is no one to help them in this process. Taxesinvolved in the trade vary widely with the broker, market, ECN and the nature of the trading account and software. Some online brokers may also charge fees for inactive traders.
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