What Is Online Market Trading?

Online market trading refers to buying and selling shares in the stock market through the use of internet-based software trading platforms. Online trading has increased significantly since it was introduced in the late 90s. Recently new, discount brokerages have been established that offer better tools and commission-free trading for their users.

Traditionally, trading in shares required a broker that took a buyer’s order and bought shares on their behalf on the market. With the advent of high-speed internet connections, brokerages offer trading platforms that enable an investor or trader to trade shares directly in the market including placing buy and sell orders, placing price limits, stop-loss and other types of transactions. These platforms also provide real-time stock quotes, information on companies and other facilities that were previously only available to stock brokers. This has reduced costs for the user and allows almost anyone with money to invest to trade in shares directly in the market without having to go through a broker.