The Advantages of Online Brokers
The advantages of online brokerage are many (cost, speed and ease of access, and services) but also some disadvantages, such as technical problems and lack of education.
The cost
This is the main interest of an online broker. Indeed, the online broker will take advantage of low costs of computerization to offer attractive rates, although lower than traditional banks, often with a supervisor.
However, some brokers that offer very low prices (they are therefore called hard discounters) offer little or no services such as information, recommendations for purchase and sale, etc..
In contrast, other brokers, mostly from former companies, have higher prices, and require a high minimum capital to open an account. But in return they offer a range of services, ranging from flows of economic and financial information to the presence of a consultant, through internal analysis of publicly traded securities.
It is not only the broker who made savings you get. By connecting to the Internet, you do not pay more than the price of a local call, or nothing at all in case of unlimited Internet access.
The speed and ease of access
It is now obvious to say that the Internet is potentially everywhere: phone, ADSL, Wi-Fi, cable, and now on your mobile WAP, I-Mode or your PDA. Terminals for Internet access to the public are even offered in various locations. Thanks to the many means of access, you can access your favorite websites from anywhere in the world, you are in Paris, Brive, Timbuktu or Sydney. Having an online broker, so the opportunity to intervene on the stock market anywhere in the world, or even in your country, in the countryside.
Services
Flexibility and relatively low cost Internet technologies allow online brokers to offer many interactive services that go far beyond mere gadget.
Already a strict ergonomic point of view, the Internet has a clear advantage over the Minitel. The same goes for the tools: decision support, simulation and calculation, interactive pedagogy, real-time information, opportunity to score and to customize your environment, to the point when you want on your situation Financial … All that was unthinkable with the Minitel is becoming increasingly widespread.
February 2nd, 2009 at 3:14 pm
[...] have talked about the advantages of online broker. Now we talk about the disadvantages. The online brokerage has three main disadvantages, which are [...]
March 12th, 2009 at 1:42 pm
There is obviously a lot to know about this. I think you made some good points in Features also.