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The rise of consumer e-trading

With increasing sophistication and improvement in the online trading platform, more people are being encouraged to take the plunge.



The rise of consumer e-trading

In the last 20 years, we have seen a dramatic increase in the accessibility global financial marketplace. During the second half of 2016, writes Investment Trends, an Australian trade research company, over 77,000 online trading accounts were opened in Australia alone.

Among the most Popular forms of online trading were EFT’s and Forex.

As I might systems become more complex, more and more people are considering online investing as a real option. With the overall number of new online investors, you are coming into the market for the first time being at the highest levels since 2010.

The research also when I’m to show during the last 12 months over 605,000 placed at least one share trade. In real terms, this means an increase in the Australian online trading market of around 13% in new online investors.

Many believe that the low-interest rates cycle we have been experiencing has also helped to create an environment where people are motivated to invest in these kinds of markets.

The diversification inherent in ETFs has made them an increasingly attractive option. Nevertheless, The majority of an online investors’ financial allocation remains in the single stock option.

Beyond Australia, the research shows a similar trend among western countries. Among the patterns emerging in western nations are the number of investors who, while, enjoying the diversification of EFT’s are willing to explore other more volatile markets such as Forex.

Late 2016 saw monthly averages in trading volumes of around $5 trillion across three, separate sessions.

Given that the expectation for these markets was around $4 trillion back January 2016 these foreign exchange markets really represent a growth market.

Clearly, the growth in these kinds of trading is the result of the easy accessibility of online trading platforms.

As the online trading marketplace becomes increasingly diverse the number of opportunities, as well as the ease of access, make trading online an excellent option for both short and long-term investors.

In the past, currency markets were considered too complex for most people and thought to be only the domain only of professional traders.

Such markets were the sole domain of large corporations who had the resources to trade at a profit and make financial gains over time.

But with the improvement and complexity in online trading, as well as the security, these new forms of investment have become real possibilities for the average individual.

Among the Forex, opportunities gaining popularity is Forex scalping.

Forex scalping is a form of online trading that entails the opening and liquidation of positions in rapid succession.

The time frame for these positions is usually around 3 to 5 minutes with scalpers often maintaining their positions for less than a minute.

With one of the most important decisions in Forex being the choice of broker, the competition for the online trading dollar is high among the best scalping forex brokers, each trying to win new consumer business to their lucrative, yet volatile markets.

The experience and attitude of the broker can have a direct bearing on the ultimate profitability for the trader.

Today, brokers and traders to be found all over the world. The methods and practices differ from culture to culture depending on the requirements of the trader. Sub-brokers are inclined to take greater risks than others.

For those who are trading long-term, the differences between traders may not be overly important. But for daily traders and those who are in and out of the market quickly, choosing a reliable broker can have a significant impact on the resulting profit or loss.

With increasing sophistication and improvement in the online trading platform, more people are being encouraged to take the plunge. While the risks remain whether it is Forex EFT’s or scalping, the potential gains and convenience are making online trading almost irresistible for some investors.

It was not that long ago that you only had a small number of online brokers to choose from. Today there are over 200 agencies all competing for your trading dollar.

And believe me, With an estimated 20 million trading accounts in the United States alone, that traded dollar is worth a lot of money.

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

David Trounce is a small business consultant living in Port Stephens Australia. He is the Founder of Mallee Blue Media and specializes in small business marketing and management. David also writes for, My Customer and the Huffington Post.