Trading in the Digital Age

With all of the technologies that have been created over the years, we have seen a drastic change in the way traders trade. Even though we still see representations of trading with people screaming with their hands waving at each other in a trading pit or on a trading floor, todays trading is pretty well all done online.

Trade Anywhere

Most notably, with the access to online trading, we traders can place trades more often directly without needing to phone a broker. In fact, trading from a handheld device can become an option to place, monitor and exit trades. Gone are the days traders need to phone in a transaction. This means that time delays can be a thing of the past. You can trade from anywhere as long as you can connect to the internet.

Buy and Sell Strategies for All

Traders have always had access to trading both the sell and buy side, but more complicated options strategies were difficult to execute over the phone and most often reserved for professionals. With the access to electronic trading came a simpler way to trade more complex options strategies like spreads, combos and multi leg strategies on your own.

So, for the retail trader, you now have access to trades like the professionals. We now have the ability to have our trades routed in the same manner as professional traders. Retail traders are no longer required to go through brokers in order to trade.

However, it is interesting that the way retail traders hear about how to invest in stocks has remained virtually the same. Indeed, the methods of which average active investors hear about the markets continues to be the ‘buy and hold’ strategies that are so traditionally understood when in fact there are many more ways a retail trader can trade.

Commissions

Online trading platforms have created some competition amongst brokers, meaning that traders can benefit from the lower rates that each broker offers to the retail trader. It is a competitive marketplace with banks and brokers all hoping to win your trading business. The direct investing segment of the financial industry is relatively new. Retail traders can have access to great rates to trade, meaning that you too can begin trading more often or with various leg strategies to take advantage of the markets. Don’t let commissions stand in your way of trades, shop around to make sure you ware getting the best commissions rates on your trades.

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