Online Trading is an internet based investment activity which eliminates the association of a broker. Anyone who has a computer, enough money to open an account and reasonable financial history has the ability to invest in the market. Nowadays there are many online trading companies working as portals for the biggest stock houses like the National stock exchange and the Bombay Stock Exchange.
The person has to get registered with the online trading portal and get into into an agreement with the company to trade in different kinds of securities by accepting the terms and conditions. The online trading portals are connected to the stock exchanges and the assigned banks.
Such online portals offer the trader an opportunity to check live online stock prices which they can either check through mail or the interface. Also ample amount of research data is provided which helps the user make their own decisions as to whether to invest in a particular stock or not.
The online trading companies allow the users to invest in a number of financial products and services like equities, mutual funds, life insurance, loans, share trading, commodities trading, institutional trading, general insurance and financial planning.
Due to this invent, the market has become more accessible, but that doesnt mean that it should be taken lightly.
When you trade online, you use the services of an online broker. You use actual money, but instead of talking to the broker about which investments to make, you yourself decide which stock to buy since you have resource to the online stock prices.
Thus online stock company not only acts as a portal, but also as a broker and offers you to maximize your returns in the most efficient manner.