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What is Online Trading.

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Old 20-11-2009, 13:48
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Default What is Online Trading.

Online Trading

In the past, investors had to call up their brokers and place an order on the phone. The broker would then enter the order in their system which was linked to trading floors and exchanges.
With the advent of the internet, investors can now enter orders directly online, or even trade with other investors via ECN's (electronic communication networks). Some orders entered online are still routed through the broker allowing agents to approve or monitor the trades. This step assists in the protection of both the client and brokerage firm from unlawful or incorrect trades which could affect the client’s portfolio or the broker’s license.
There are many major benefits to online trading. You have the ability to expand your business for a relatively low cost. Online trading has become big business, and the Internet has helped many businesses achieve a great deal of success. Internet companies such as Amazon.com and Ebay use online trading as a primary means of business and have had great success in doing so, but there have also been many businesses that have tried and failed with online trading.

You can also Get Live Trading Signals to trade online with more ease.

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