The Rise In Online Trading
Dynamic changes have been altering the traditional systems over the last decade and stock market trading is no exception to this. A few years ago, you could find a handful of online traders, but the number has dramatically risen today. However, the true numbers are quite challenging to find because of the phenomenal shift of consumers and marketing activities in stock trading. Let’s take a look at some of the reasons that contributed to the rise and popularity of online trading.
Factors that supported this change
A new trend: Anything new that is followed by many becomes a trend and trends need to be followed. Online trading was the new way to the share markets for investors, and hence, gained immense popularity. Its efficiency and accessibility are what keep online trading attractive.
Less dependence on brokers: The emergence of online trading liberated traders and investors of their dependence on intermediaries (brokers). Earlier, trading was primarily mediated through agents who also gave tips. However, online trading has made market research outputs readily available to consumers, which has, in turn, helped the latter take their own decisions.
Transparent and updated information: Information is updated in real time and is readily available to traders through online trading apps and/or websites. This information reduces the time difference between a market activity and the time it takes traders to know about it. This has significantly added to the popularity of online trading.
Trading for all: Before the emergence and popularity of online trading, stock trading was a secluded market. Most people were not even aware of the stock markets, while others shied away from it. Online trading has opened the gates to all and tickled the interests of the general population.
Change in investment norm: Long-term investments have always been considered to be profitable, but due to gradual changes in market elements and the nature of the market and trading processes, short-term investments have reaped more profit. Online trading is best suited for short-term and quick investments because of the ease of operation, least time lapse, and real-time motoring.
The capital markets are an ever-evolving space that have elements being added over time. Online trading and its growth have made the markets more dynamic than ever before, which reflects even in the economies of different nations.
About the Author
Start Investing Now!
Open Free Demat Account in 5 mins