Fintech has broken the traditional barriers that kept investment away from people who did not want the go through the hassle associated with investments. The conventional trading of stocks and securities caused many investors headaches having to deal with brokers whose attention was torn among their numerous investors. Today, thanks to the innovations by fintech, people can trade in shares, securities, and mutual funds with minimal labor making it attractive to more people. Fintech has developed mobile applications that allow people to trade easily. Many assume that online investment instruments are meant for tech-savvy millennials, but this is not true. Such innovations are created to eliminating barriers that keep people away from investing regardless of their age or tech-savviness.
The reasons more people will continue to consider investing money online include:
It is simple as it does not require specialized skills to trade profitability. Many online traders are self-taught using information available on the internet to learn about trading. There is a vast literature on learning online trading and the trading simulation games equip interested individuals with the resources they need to trade profitably. Trading online allows you to access research reports on stock prices and investment recommendations that you can use to make sound decisions.
Online investing gives investors complete control of their portfolio, meaning that they can place a trade on stocks and securities of their choice and wherever and whenever they wish to do so. As such, you have the discretion of deciding whether to invest in fixed-income securities, EFTs, mutual funds, or stocks. You also get to decide whether to trade part-time, full-time, or whether to be a passive or active investor depending on your goals for investing online.
Easy to monitor your investment
There are mobile trading apps available for online traders to monitor investments and keep track of markets. The availability of such information is critical to enable investors to make strategic moves in response to market indicators. For example, keeping track of markets can help you identify a stock that is likely to make losses and cut it from your portfolio and invest more profit-making options. A strategic investor keeps abreast of market conditions and makes moves when it is most opportune.
Minimizes chances or loss and errors
Errors in trading usually arise when there are miscommunications between traders and broker about the trading intentions of the investor or the broker. However, when you trade online, in case you make an error, for example, you place a trade order you did not intend to, you can cancel the trade. Conversely, if a broker was placing trades on your behalf, you might not learn about this until the trade is executed, and at this point, you cannot cancel the trade.
When you compare online investing to conventional investing, it is evident that online trading is cheaper. There are commissions and maintenance costs that brokers charge that increase the investment cost, and online trading minimizes such costs.
Saves on time
Traditional trading involved visiting or calling brokerage firms to place an order on sales or purchases or even cancel orders. Since many people relied on similar services, one would take time to have their requests executed. Today, trading technologies and applications have made it easy to execute similar services.
A precautionary note to investors is that while there are numerous benefits of investing online, the online world is highly susceptible to vulnerabilities. Therefore, secure your investment by taking measures to be safe such as avoiding trading on shared PCs and using open access WIFI. Always logout from your trading account after executing trades and keep your PC installed with anti-virus to minimize authorized third-party access.