Industry Backgroud


Before there was internet, investors used to call up their brokers and place orders by phone. Then, brokers would call in that order to traders on the floor at the exchanges where they would execute the investor's order.

Why Online

Nowadays, investors can enter orders directly online with online brokers. Online brokers are cheaper since they do not give advice to clients like full service brokers. Additionally, by executing trades online, the process is more efficient and there are many helpful tools.

Choosing an Online Broker

Before choosing to invest or trade online it is important for investors to research the online brokers that they plan to use. Investors must understand the potential risks of investing without the help of a trained Stock Broker or Investment Advisor.


Once investors have chosen an online brokerage that best suits their needs, they will be provided a trading platform. This platform acts as the hub, allowing investors to purchase and sell:

  • Securities (fixed income and equities)
  • Options
  • Mutual funds
  • Forex

Included with the platform are tools to track and monitor securities, portfolios and indices, as well as research tools, real-time streaming quotes and up-to-date news releases; all of which are necessary to trade profitably. Often, more robust research tools are available such as full, in-depth analyst reports and analysis, and customized backtesting to see how particular investment strategies would have been realized during different historical periods.

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