Online Stock Trading – Past, Present, and Future
Online Stock Trading – the Past
Time was that when you needed to purchase or sell stock an investor needed to pick up the phone and call a stock broker. That is, if your timing for the trade was during the broker’s office hours and you could reach him on the phone. With stock brokers being the only way to make the desired trade they were in demand by investors which in turn provided them with lucrative businesses through commissions and fees. Some investors even fell victim to unscrupulous brokers who were incented to guide investors toward particular stocks that provided the broker or brokerage with higher commissions or bonuses.
Then came the birth of public communications networks. Through the access provided by high-speed communications brokers were provided with the ability to place buy and sell orders more quickly and efficiently than ever before. Stock-trading-warrior describes the evolution in detail beginning in 1982 with the first round of internet trading capability. But it was several years before economic factors and technology enabled real advancements in online stock trading.
In the 1990s it became more feasible for the average investor to participate in online stock trading and the world of the day trader was born. Investors not only had the capability of placing trade orders quickly and at lower cost than conventional brokers but also had access to information that enabled more informed investment decisions. Online investment accounts proliferated rapidly through the 2000’s as did the number of online stock brokers.
Online Stock Trading – Present
Are there any investors today who don’t have access to the internet? Cost-effective high-speed services that give the average day trader 24×7 access to an online stock broker account open the investment world to anyone. All you need to get started is a computer, some initial capital, and an investment strategy.
Online brokers have grown significantly in the services offered to day traders. Constant reliable access to trade orders allow quick and easy buy and sell activities even during off hours. Trades can be executed in minutes ensuring that financial opportunities identified can be realized to full advantage. Online stock brokers today provide more than financial news and real-time stock tickers. Most offer sophisticated tools for stock analysis over time periods, historical graphing tools that enable investors to detect trends, and more. Many can provide pertinent information linking directly to the company or stock the investor is interested in. Online stock brokers provide benefits to their account holders through providing easy access to information, fast execution of trade orders, and lower cost than traditional brokers.
There are also now many more financial investment vehicles available to online investors. Where online trading initially focused on traditional stocks today’s options include stocks, bonds, commodities, and currencies including forex. Online investors also enjoy the capability to trade in markets worldwide instead of being limited to only markets that a traditional broker represents.
Online Stock Trading – the Future
Sophistication incorporated in online broker services continue to evolve with technology and are also driven by widespread competition. Analysis tools and financial products offered will continue to grow to the advantage of traditional investors and day traders.
CNBC has their own vision of what the future holds for online stock traders that includes the use of a personal investment advisor online presenting advice to your online avatar. Through artificial intelligence capabilities the advisor will know your investment strategy and can tailor advice to your specific goals or needs. Just as smartphones have evolved with voice recognition and commands you may be able to make stock trades in much the same manner.
Most of us are familiar with today’s “crowdsourcing” sites that facilitate requests for investment or contributions through social media connections such as Kickstarter. Why not take that a step or two farther through using similar techniques to launch an IPO? Obviously regulation or oversight will be in order to protect investors against bogus propositions, but the concept certainly has merit.
One consideration that may or not be a cause for concern: with immediate trade execution, access to information in real time, and more investors participating in such online trading activities, it seems plausible that there is a real potential for rapid shifts in economic conditions. This could even result in bear and bull markets that indicate a decline and a subsequent recovery not only in months but even in minutes.
SureTrader is a leading online broker offering day trader clients all the tools needed for timely execution of their desired trades. Utilization of SureTrader’s sophisticated technology permits day traders to make quick decisions and act on them when the time is right. Our desktop and mobile services provide the accessibility and functionality that make day trading enjoyable and profitable. Smartphone applications are available on both iOS and Android platforms. SureTrader even facilitates execution of trades in after-hours trading so that you don’t miss critical investment opportunities. Contact us right away to get started doing online trading with the best in online brokers.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.