How the Internet has changed the world of trading

Small Business

The Internet provides us withmany advantages of living in the technology age. Services like Uber simply wouldn’t have been possible without it, while the ease with which information on any topic can now be found is astounding. But for speculative financial traders, the web has had a profound impact on the industry. The speed with which trades can be placed over modern broadband connections is fast to say the least.It’s now also possible to find brokers online offering a range of additional investment products. This article will explore exactly what the all-new Internet trading landscape looks like – and how you as a trader can benefit from it.

Transmission speed

The average broadband upload speeds in the US have approached 20 Mbps in recent years – and while this has lots of versatile uses, it’s a godsend for traders. That’s because market order trades can be executed almost as soon as they are placed, with delays on some platforms limited to just a few seconds. It’s a far cry from the trading world of decades gone by: calling in orders over the phone meant that the markets could well have shifted by the time the connection had been established and the message had been relayed.

Other products

Years ago, the number of products available to a trader was much lower than it is now. That’s because it’s only in recent years that derivatives such as contracts for difference, or CFDs, have come into vogue. These products are often easier to access because they are derived from the market rather than actually beingpart of it, so you won’t haveany ownership or have to wait long to access a scarce stock or share. These Internet-friendly products are also advantageous in that they work on a leverage basis: this means that any gains can potentially be magnified, although losses can be as well.

Broker comparison sites

Looking for a broker is an essential part of the trading process and finding the right one can be make or break for a business. That’s why broker comparison sites are so useful: once you’ve inserted criteria like your preferred fee structure, the range of products on offer and more, comparison tools are able to filter out the sort of broker you don’t need and emphasize those you do. Comparing CFD and Forex Brokers before agreeing to one you like the look of is a good idea.After all, the first offer you see may well not be the best one.

Trading certainly hasn’t been the same since the Internet came along – and it’s changed by far for the better. From the introduction of contracts for difference to the arrival of fast broadband speeds and easier market access, the Internet has transformed speculative financial trading in a manner that would have been hard to predict even a decade or so ago. And with trading technology set to grow in force and prevalence in the coming years, it’s likely that Internet trading will become more popular.

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