pros and cons of online trading
Some companies that embrace B2B and B2C transactions, such as Amazon, arise as e-commerce businesses without traditional retail outlets. These single-business companies typically identify a gap in the traditional retail market that can be filled with only an e-commerce solution.
5 benefits of online trading:
1. Lower fees
Travel chaos from pilot shortage just part of Alaska Airlines’ headaches
Microsoft CEO Nadella warns of the impact of all those late-night emails
Alaska Airlines cancels more flights out of Sea-Tac Airport on Friday
Delivery company files class action on behalf of 2,500 Amazon-branded partners
Teamsters say they will end Seattle-area concrete strike, but still no deal with employers
One of the clearest advantages of online trading is the reduction in transaction costs and high fees associated with traditional brick-and-mortar brokerage firms. Typically, you’ll pay between $5 and $10 to buy and sell stocks and exchange-traded funds at online discount brokerages, according to a Bloomberg report.
2. More control and flexibility
Time is often of the essence when you trade stocks, so the speed of using online trading portals is a benefit to many investors. With online trading, you can execute a trade almost immediately. Traditional brick-and-mortar brokers might require appointments, either online, over the phone or in person, just to initiate a trade.
3. Ability to avoid brokerage bias
4. Access to online tools
5. Option to monitor investments in real time
![]() |
5 disadvantages of online trading:
1. Easier to invest too much too fast
Online investors can protect themselves by understanding the stocks they are buying and setting up safeguards in fast-paced markets. Placing a limit order on your account is one way to control what you buy and how much of it.
2. No personal relationships with brokers
3. Addictive nature
4. Internet-dependent
5. Buying errors due to computer missteps