If an agent is really necessary to trade on the stock market? Years ago it was the knowledge that only gray-haired men in suits removed Pin-listed. The average person did not know anything about the market, it was a mystery. Many people do not know what a hedge fund was, or to understand that something relating to options or futures.
That's all changed in the computer age. But even so, a few years ago, the average person tradingbounded on the stock exchange on the phone with his broker and the execution of a trade. Most people rely on brokers to give them advice on buying and selling.
With the advent of online trading has changed the position of broker. Not more advice on what to buy and sell, but only the order processing for its customers. With the deep discount brokers, there is very little contact between the concessionaire and a person live at the switchboard. Now you can remove the average personbroker from the equation, and consequently have lower transaction costs.
The first steps on the market can be integrated, fun and useful. It can also be painful and expensive. Any person trading in the market needs to perform its due diligence and the market is to understand that trade
There are advantages and disadvantages of trading without intermediaries. With the largest is not with the expert advice given to investment. Now, individual investors for the stock's own research.Of course, this is indicated by the fact that some brokers were nothing more than offset the market churns them is recommended that the hot soup of the day, sometimes only the price of shares traded for a record low, so that the investor with the 'bag.
There are many pros to trading without intermediaries. The cost would be the greatest, it can be as much as ten times more for a full cost of the service broker is used compared to a deep discount broker. So, you do not need a huge bankroll to start, you can openaccount for $ 500 with several companies. Low taxes, you can start with a relatively small investment to start even the smallest trading on-line investor.
It 'really easy to use online trading. Most companies have a simple computer program to facilitate the exchanges fast. Some companies even allow the sale of naked options. Of course this is only for investors with experience with large account allows.
The elimination of broker opens a lot of freedom for investors and provides all the control functionsin his hands. The downside, there is nobody to bad investments on other than you to blame.
Trading in the stock market without an intermediary can be very funny. No matter if you're trading days, or operating under a long term approach that can learn the advantages and disadvantages of trading the market without a broker, exciting and rewarding. Trading online is a trend that is sure to continue.