In today’s climate of uncertainty and global upheaval in markets, there are only a few investments vehicle that seem secure. But more importantly, many individuals are beginning to notice that financial managers entrusted with investing others’ money often do not have the interests in the clients at heart. The average individual would never have managed to trade directly on the stock exchange considering the amount of initial investment required to make it into the elite club. But technology is a source of major disruptions and trading on the stock exchange is no different. Now individuals can easily make their trades and control their money by using the many online trading options such as stock options trading, future trading, commodities trading and foreign exchange trading. Following are five key reasons why many individuals favor online commodity futures trading.
The Investor Controls the Capital
In traditional broker-based trades, the broker or investment banker was entrusted with the money. This model consisted of considerable human interference along with the possibility of errors. Late contrivances by brokers, for example, the LIBOR outrage and the sub-prime emergency have incredibly disintegrated the certainty of the normal man in “overpaid” money managers. Online futures trading is revolutionary because it puts the control of money back in the hand of the primary investor. This not only ensures that the investor can watch the investment grow but also ensures prudent trade transactions.
Round the Clock
For individuals working odd hours, it might be almost impossible to trade on the domestic exchanges, however online trades are available for multiple stock exchanges spread across different time zones. So, no matter what your working hours, you can easily trade in the stocks of your choice as well as in the stock exchange of your choice from the comfort of your home.
Many Users following traditional methods of futures trading are frustrated with the prospect to tracking each and every trade they conducted. The older the trade, the harder to track down the record, but new technologies can make it much easier. Online trading websites are incorporated with tools such as Trading Log, Investment Journal , Investment Log, etc., which automatically maintain a comprehensive records of all trades including key information such as date on which the trade was completed, total value of the transaction, profit/loss on the trade and much more.
Another key reason more and more individuals are opting for such online activities is the easy availability of tutorials. These online tutorials are easy to understand and feature a degree of interactivity with the learner, which cannot be replicated through books. Even experienced brokers sometimes undergo these courses to improve their skills and pick up new tricks.
Small Start-up Capital
Traditional stock market transactions required significant capital investments, due to key volume requirements according to trading regulations. The regulations for online trading are not the same as that of trading on the stock market; this allows individuals to trade using relatively smaller investments. This small seed capital ensures that risks are minimized for the individuals while simultaneously ensuring a key investment for the future.