UK Accounting Glossary
Online trading is a process by which securities are traded over the Internet. Online trading is available to anyone with access to an Internet-enabled personal computer. Online trading may be provided by Internet-based brokerage companies like Scottrade, as well as conventional brokerage firms like Charles Schwab. Online trading functions in the same way as physical trading. However, online trading provides individuals with the benefit of placing orders and making trades beyond normal trading hours. In addition, online trading tends to be a cheaper alternative when compared to working with a professional broker. While online trading may be more practical, many investors continue to opt for live brokers. For online trading lacks the service and expertise commonly associated with brokers and financial professionals. Today, many individuals investors engage in dynamic online trading, called day trading, carrying out numerous narrowly spaced trades in order to generate short term profit. Online trading is made possible by electronic communication networks (ECN).
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This glossary post was last updated: 7th February 2020.