Online Trading Advantages and DisadvantagesOnline trading or direct access trading (DAT), financial instruments became popular over the past five years. Now almost all financial instruments are available to trade online including stocks, bonds, futures, options, ETFs, mutual funds and forex currencies. Online trading is different from much of the traditional trade patterns and the different strategies need to profit from the market.
In traditional commerce, trades made through a broker over the telephone or any other communication method. The broker helps the dealer collects the entire trading process and use information to better trading decisions. Exchange for this service commissions charged by retailers, which is often very high. The whole process is usually very slow, taking hours to execute a single trade. The long-term investors who have a smaller number of trades are the main beneficiaries.