In this world today, almost everyone has access to a computer and the Internet. As such, a lot has been replaced: instead of sending mails (now called snail mail), we send electronic mails or emails to friends—who live far away or just next door—through the Internet; we can also buy things online; pay our bills; or even order tonight’s dinner.
This being said, stocks can be traded online now, to the mutual benefit of both trader and broker alike. Traders can check their accounts at the comfort of their own houses; and buy or sell stocks at a lower commission rate and charges from brokers. While brokers on the other hand, can execute a transaction without the hassle of the telephone.
For a novice trader, it is advisable to be familiarized with the stock market before trading online, and also be familiarized with the online brokerage company he chooses. It should be one that has been in business for a number of years. It is also wise to have contact with his broker in person, as there might be some complications of trading online. And while the Internet is the fastest medium these days, it is still not the most secure to make transactions.
Such are the opportunities and risks of trading online. It is highly recommended that we make an extensive study of the different factors before trading via internet. Some people may find themselves at a disadvantage, while others may find this method convenient, if not profitable.