Trading in the stock exchange was traditionally done by brokers before the advent of the Internet. After closing the deal, the broker would offer advice and trade the stock. To trade, you had to either present yourself at the exchange or rely upon numerous phone calls to broker house. The way stock trading works has changed dramatically with the introduction of the internet to everyone's lives.
Online trading can be done via secure websites or proprietary software programs provided by trusted brokerage houses and financial institutions. Traders are also provided with online support, training documents, and professional assistance through call-centers. Online trading offers the following advantages:
Traditional stock trading has a wide range of commissions. However, online trading charges are much lower and nearly uniform for all stocks. Low-priced stocks are easy to trade and can earn substantial profits in a short time. Traders can also make a profit from the marginal rise or fall in a stock within one day due to low commission charges.
Transactions are faster:
An online trader is able to complete the entire process in minutes, unlike traditional stock trading, where the trader calls the broker and fixes the price. The trader has the ability to choose when to sell or buy stock and maintain profit margins, considering the time factor involved in fluctuating its price.