By the virtue of the internet, trading can be done quicker in an easier way by executing trades through online brokers. Internet companies such as Amazon.com and Ebay use online trading as a primary means of business and have great success in doing so.
In online trading, an online broker helps in execution of trades through an online trading platform (trading software). The broker, through their platform offers the trader to have access to market data, news, charts, alerts and technical analysis programs. This has opened the door for online traders to make their own online trading decisions, as these were not available to the average retail trader.
When you log into your trading account, you virtually have everything to trade and there are many electronic trading and settlement systems which help you to trade in any stock or a commodity over the world. Now-a-days many financial instruments like stocks, bonds, futures, options, ETFs, forex currencies, mutual funds are available to trade online.
Thus online trading includes many benefits of fully automated trading process which is broker independent, with discount commission rates, informed decision making and access to advanced trading tools. Here traders have direct control over their trading portfolio, and they have the ability to trade multiple markets and/or products using real-time market data.
For a faster trade execution in day trading, online trading favors active traders to make quick and frequent trades, who demand lesser commission rates and who trade in bulk on leverage.