What is Online Trading?

The field of trading is an extensive domain that includes a lot many things from planning finances to carrying out the deals practically. Earlier, trading had emerged as a monopoly of certain agencies and traders’ groups and as such there was a growing monopoly of the sort that didn’t make it any easier for the rest to breakthrough. This was more evident in the era of pre-disinvestment when there was little support from the administrative quarters and transparency didn’t flourish as much as required.

However, as Indian markets opened up more to the global realities, a need was felt to encourage more transparency and accountability which led to a change in the whole way trading business was carried out in India. This was also the time when online trading was greatly encouraged and this led to the current scenario when online trading has become the most sought after trading instrument.

Online trading has made the whole process of trading much convenient and easily accessible to the general masses. This means that today, anybody who wants to Local Trade Copier in stocks or commodities has the required access to everything that he needs to do so.

With the online trading platforms, the available options are numerous and the whole system is conducive for those who wish to invest their funds in capital growth channels through trade. The following points highlight the major pointers about online trading in India:

Pros of Online Trading

[1] Ease of investment:

Online trading opens up a whole set of available options and brings them to you for your overall multi-faceted benefit. A firm like Tradebulls comes across as a reliable platform for receiving dependable consultation that can further grow your capital interests through varied trade options.

Moreover, instead of going through lengthy processes of offline trade, with all the paperwork, form filling etc., you get to simply log on and receive the complete set of information regarding your investments.

[2] You retain control of investment channels:

Unlike physical trading where every step of the procedure feels cumbersome and hefty, especially considering that it has to be accompanied by research, online trade allows you to retain significant control of your available investment options.

Be it commodity trading or general stock trading, the decisions of investment are yours to take. This also impacts the quality of investments as you can seek and get the best available information at your convenience.

[3] Timing and flexibility factor:

Unlike offline trading where the procedures involve lengthy processes of seeking appointments with multiple brokers, negotiating the terms and conditions, regularization of your trading instruments and then certification and documentation, online trading allows you to considerably save your time and resources by simplifying the entire process so that you can make quick decisions and can execute trade deals almost immediately.

This also means that the degree of flexibility is greater and you can leverage this for further benefits in a significant manner.

[4] Monitoring of deals and transactions:

Online trading allows you to keep an easy tracking of your investment status and transaction history. The ease of tracking and monitoring in online e-trading is one of the core points of advantage. In case of offline or physical trading, monitoring your trade deals, payments, pricing etc. is way too burdensome and tiring.

After all, there is so much paperwork involved and record-keeping consumes the bulk of your time and efforts. This is where the inherent benefit of online trading can come to your aid.

[5] Costing parameter:

This is another major area where online trading proves its worth. The costing i.e. brokerage fee, consultation charges etc. are way too less than what they are with physical trading. The logic here is simple – since you act as a primary controller of capital fund movement in the market, there is no requirement of anybody else acting on your behalf.

As a result of this, there is no need of paying hefty amounts of money to brokers. The internet brokers i.e. the brokers who offer online trading platforms do not charge much and so, the costing is way more economical.

Tradebulls, a duly registered and certified body of professional consultants thrives on the idea of simple trading solutions for your benefit.

Just like any other market channel, online trading also comes with its limitations. The key to any successful trading activity or market understanding is to have a balanced perspective of every factor.

Cons of Online Trading

Thus, for a complete understanding of online trading, its limitations or cons must be also taken into account.

[1] Going beyond your actual requirements:

The ease of conducting online trading is also one of its major limitations. This is because, since trading is so easy, it can hamper one’s judgment of how much to invest. Often, owing to the speedy transactions and convenient access, people end up making deals that prove to be a disaster in the long run.

Given the stress-free and smooth procedures in online trading, you may even overinvest your funds or may make your portfolio quite lopsided. This is why consultation with professionals like Tradebulls is so essential.

[2] Lack of interpersonal understanding:

One area where technology cannot replace personal interactions is understanding human behaviour and mutual interdependence. Offline trading, though cumbersome, involves a better understanding of your personal financial goals.

This is why a broker may be able to point out certain pointers for you which may be relevant on a personal note. This is something that technology won’t be able to do.

[3] Not suitable for people with less technical or internet know-how:

Unlike physical trading, online trading does not offer significant scope for the correction of mistakes or errors. A minor technical error can have serious consequences. If a person lacks due internet knowledge or required technical know-how, he/she can end up making mistakes that severely impact the trading outcomes.

This comparative analysis of online trading offers insight into why the services of a trusted firm like Tradebulls is very much required. To ascertain your specific requirements and to get due consultation, connect with our advisors at online@tradebulls.in or 022-40001000.