What is internet trading?

  Historically, the purchase or sale of securities carried out in specially designated areas where gathered both sellers and buyers. With the development of financial markets and the other was too much. The yield found created Exchange and entered the post professional participant. For the acquisition of the securities is now necessary to go to a broker and apply through. For a long time, but reliably. With the advent of the phone process has become more dynamic. The time it took to conclude the transaction, reduced to 20-30 minutes. Sources of information on which decisions were made, remained the same the press, rumors, tips a professional counselor. Then came the Internet and as a result of Internet trading.

  The literal translation Network bids. But in the present conditions, this term has a narrower, but also more specialized definition. In fact, online trading it is an investment management activities through the Internet, buying and selling securities through the Internet. Sometimes, equally, the terms are used "E-trading" or "I-trading". In general, the term "Internet trading" refers to the possibility of remote access to trading over the Internet, through a specially created for these purposes software. And online trading can be of two types:

  "Mediation". Chronologically the first type, which is essentially an electronic reflection of the real process of investing in securities. In short, the essence of Intrernet trading of this type is as follows: US broker is the nominal holder of the client's securities, and it opens access to its trading terminals connected to trading systems and exchanges. Access to the system via the Internet broker, and the client may give orders for real-time transactions. Given the maturity of the US market, the customers carry out transactions and receive reports from the brokers, the deals are recorded as securities actually change owners in depository and clearing system between customer accounts in a very short time, allowing you to enter into transactions for a short time, thus opening up opportunities speculation.
  Part of such opportunities exist in the UK market, Germany, and Japan. Of course, with the introduction of the euro, and the European market as the association moves in the same direction. And those steps have already been made. Basically, opening an account in a major Swiss bank (Credit Suisse), you can access through the Internet to virtually any global market, whether it's Australia or America, now. (Disadvantage the minimum amount for opening such an account 200,000)

  "Independent". Chronologically later kind of online trading is much more progressive and promising for investors, but it is undeveloped, which requires additional investments and legislative settlement is a service provided by a few companies. The essence and the main feature is that the investor almost independently on the stock exchange in real time with the help of special software obesprecheniya, rather than through the intermediary of the Internet broker, which is necessary to send a request to perform an operation, and wait for her execution. Another advantage of this type of online trading efficiency, ie, It has the opportunity to not only make the transaction immediately at the current price, but also immediately revoke the transaction if something has changed
  To these definitions Intrernet trading became more apparent, it is necessary to consider three components of Internet trading: trading system, users of Internet trading and what is meant by software.
  Trading system a stock exchange (non-profit organizations), created in order to trading in securities carried out with minimal risk. For example, the Exchange shall monitor the delivery of the securities transaction and timely payment. Organizations that, due to the specifics of their activities, securities trading, agree to pay a certain amount for that exchange takes on some of the risks. Such organizations should have a professional participant status. All domestic trading systems available for trading is available exclusively to the professional participants of the securities market, ie licensed dealers and brokers. Conclusion the relationship is directly between the trading system and unprofessional party, without an intermediary a broker, do not work in modern conditions of the domestic market.
  Users of Internet-trading:
  If you want to get access to trading, you need to have your own broker. Responsibilities broker to the client sufficiently well defined as the historical traditions and regulations. First it is receiving from the client orders for execution of the transaction, and secondly to send him a report on completed transactions on those assignments. All other charges or brokerage services: consulting, information, filing the application on the phone attendant. The classic version: the customer comes to the broker in the office and personally gave the order for the purchase or sale of securities, without any consultation. Long and uncomfortable. With the advent of the phone have an opportunity to apply to the "voice". Professional consultations of experts have become a recognized alternative to newspaper articles and rumors. Quick and timely information sheet about the current state of the market has replaced the floppy nightly stock quotes. Each of the newly emerging services becomes a necessity, and sometimes indispensable. Internet trading a complex of such services, its main difference from the real trading that the client is given a minimum set of brokerage services reception and execution of orders, all other services individual more, but at the expense of the online trading system, the minimum volume is reached brokerage commissions (approximately 5-10 times lower than the actual brokers)
  In the world there are hundreds of online brokers. This as the newly established companies and divisions of large investment banks, brokerage houses and classical mutual funds. In the top five, with a total of about 6 million of public investment accounts include:

www.schwab.com
www.etrade.com
www.waterhouse.com
www.ameritrade.com
www.datek.com 

  Software:
  Thanks to the good interface of the program can be seen on the monitor current quotations on selected instruments, committed in the trading system of the transaction, dynamically changing after every transaction details on limits. The data exported from the stock exchange, can be stored in the archives, to build charts, technical analysis to analyze the programs. Internet trading enables real-time application form and see their performance directly in the trading system. The most important indicators providing information services and the execution of applications virtually the same as those that are professional participants of the stock market.
In the countries of the former USSR Internet trading began to develop about four years ago. A pioneer in this field is Guta-Bank with its proprietary Remote-Trade.
  In 1998, direct exchanges have begun to develop a program that would allow the system to connect with Internet trading rigidly fixed standards for information is sent to the trading system. There were some programs essentially differing only in the interface and the name of the developer. But the program must be configured individually depending on your Internet terydinga and securities services markets on which the client would like to participate in each country.