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The online stock market trading is the Internet based investment activity that involves no direct involvement of the broker. There are many leading online stock trading portals in world along with the online trading platforms of the biggest stock houses in India like the National stock exchange and the Bombay stock exchange. The total portion of online share trading in India has been found to have grown from just 3 per cent of the total turnover in 2003-04 to 16 per cent in 2006-07.
There are several facilities of online stock trading portals in the world. The investor has to register with an online trading portal and get into an agreement with the firm to trade in different securities following the terms and conditions listed down on the agreement. The order processing is done in correct timings as the servers of the online trading portals in the world are connected to the stock exchanges and designated banks all round the clock. They can also get updates on the trading
and check the current status of their orders either through e-mail or through the interface. Brokerages also provides research content on their websites, such that the clients can take their own decisions on stocks before investing.
The major financial products and services of online stock trading are are equities, mutual funds, life insurance, general insurance, loans, share trading, commodities trading, portfolio management and financial planning. Online investing and trading or OT in short has been a new phenomenon enabled by the Internet. In a nutshell, it has helped to radically lower barriers of entry into investment processes by decentralizing and atomizing them, that is moving them away from large institutionalized exchanges and brokerages and into the hands of practically any individual with the access to the Internet.
As such, OT revolutionizes investment processes by making them much more responsive to competitive market forces on a global scale. However, possessing adequate knowledge has never been more important to achieving success in this area. There are always success and failure rates in online trading at the dawn of this new era.
As per the survey the online trading assets has grown from $415 billion in 1998 to more than $3 trillion by the end of 2003, according to Jupiter Communications. As trading on the web speeds toward mass acceptance, traditional financial institutions are scrapping with Internet brokerage firms and start-ups over the biggest piece of the online investing pie. The growth of online brokerages is forcing traditional "brick and mortar" financial institutions a run for their money. Competition and
growth are increasing in the brokerage business.
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