Gone are the days when visiting stock exchanges in person was the only way to make trades. With the launch of trading platforms and accounts, investors do not have to stand in long queues to make trades. The rise of digitisation has helped investors find new trading and investment research methods. Let us discuss what online trading is and the recent trends.
Online Trading: Basics
Before delving deeper, you must understand what is online or digital trading. Online trading is the process of buying and selling financial securities through digital platforms, applications, and portals. You might have come across several trading applications and platforms that facilitate trading. Besides investment platforms, investors also require trading accounts to buy and sell financial securities. A trading account will offer access to public securities listed on stock exchanges and financial markets. You will also require a Demat or dematerialisation account. A Demat account will hold financial securities in electronic form purchased via a trading account. It helps remove the need for physical or paper trade certificates.
Online Trading: Trends and Innovations
Investors must keep track of recent trends in digital trading. It can help them enhance their efficiency, research standards, and return ratio. Here are some recent trends in digital trading one must know:
When cryptocurrency first arrived, many investors were sceptical about its future. The government did not implement proper laws for cryptocurrency trading, as they did not believe it could survive. However, cryptocurrency has not only survived but thrived in today’s era. Due to the increasing popularity of cryptocurrencies, many financial institutions and brokers have started offering digital currency services. Many merchants around the world have started accepting cryptocurrency as a form of payment. It is expected that more investors will prefer cryptocurrency in the coming years.
The Rise of NFTs
The rise of NFTs (Non-Fungible Tokens) has been observed in the past few years. It is a new asset class preferred by investors around the world. NFTs are digital assets that include art pieces, in-game items, collectables, virtual real estate, and other things. Investors now prefer owning unique digital items and selling them for a profit.
Personalised Trading Platforms
Trading platforms have been around for many years. However, the recent innovations in trading platforms have increased the efficiency of investors. Brokers and financial institutions offer personalised trading platforms to meet individual needs. For instance, a new-age trading platform will offer personalised notifications based on your investment strategy. You might get to know about the latest IPOs, market conditions, compliance changes, and much more in real time. A personal touch offered by trading platforms is more important for beginners and retail investors. They will feel like a personal assistant is available to assist them with investment decisions.
AI-led Investment Research
Back in the day, investors believed in paper-based research. Institutional investors hired consultants and analysts for informed decision-making. However, today’s digital era has completely changed the investment research scenario. Investment platforms are embedded with AI (Artificial Intelligence) and ML (Machine Learning) capabilities. It allows investment platforms to automate research and analysis. Investment strategies can also be automated with the help of AI and ML. These technologies have removed the traces of human errors in investment research. Not to forget, they can predict market conditions, asset prices, and more.
Increasing Number of Discount Brokers
More and more individuals are now interested in online trading in 2023. Many discount brokers have emerged in the past few years to support the growing number of investors. Contrary to full-service brokers, discount brokers offer trading services at a low cost, thus helping retail investors to grow.
Online trading has been revolutionised with the rise of new technologies and asset classes. Investors must keep track of recent trends in digital trading to stay updated. You can open a brokerage account today and start trading assets. Learn more about digital trading trends now!