| Many industries have profited from data exchange | | | | in entirety. |
| over the Internet but they face several impediments | | | | Since in an online brokerage there is no need for any |
| when it comes to the actual transfer of physical | | | | human contact, to control and manage risks the |
| products. Only with online brokerage industry, | | | | ongoing automated screening is important. The |
| transactions occur where "information” is sold as | | | | screening includes checking availability of funds or |
| a commodity without the transfer of physical goods. | | | | scripts, trading history, trading volumes and payment |
| The Internet is accurately the means, which | | | | defaults. This needs online real time access to clients |
| transforms the dynamics of brokerage industry. | | | | and also to historical data. |
| Within the financial services, Internet trading is the | | | | Also the trading system should be able to acquire |
| first industry to maximize the Internet's potential and | | | | intelligence from every transaction. |
| quickly build a substantial customer base. | | | | While choosing an online broker, it is important to |
| Online brokerage has gained inconceivable resources | | | | notice the following: |
| through cost-effective access to capital markets | | | | The type of trader: For a person trading often, |
| across the world. Online brokerage offers ultra high | | | | lowest commission is important and for an occasional |
| speed and highly convenient information analysis to | | | | trader, a broker offering good customer service is |
| online traders. The number of household trading | | | | important. |
| stocks online has grown astonishingly making the | | | | Commission and fees: It should be noticed whether |
| investor community shift towards online. | | | | the commission is based on the type or size of the |
| In the traditional training system the brokers have | | | | order and there is any additional fees like inactivity |
| been absolute control over a customer's investment | | | | fees or closing account fees. |
| choice where the brokers act in two capacities-first | | | | All investment accounts in one place: whether any |
| the role of a "gate keeper" in which he collects rent | | | | other trade investments other than stocks can be |
| from his customer for his accessibility to stock | | | | made like mutual funds or ETF. |
| markets. This gives him the brokerage commission | | | | Security: It should be double-checked whether the |
| irrespective of whether the customer gains or loses | | | | personal information of the trader and his account |
| in the whole transaction and secondly, as a full | | | | are secure with the broker. It can also be verified |
| service broker in which he acts as an advisor or | | | | through articles online about the broker to check his |
| manager of the client's portfolio. | | | | genuinity. |
| In an online brokerage system, the two basic factors | | | | Online brokerage industry will continue to grow |
| are the speed and cost and online brokerage aims to | | | | dramatically which is evident from the increase in the |
| simplify online interaction for the investors. Therefore | | | | number of investment brokers aiming for an online |
| the entire trading circuitry must be linked online. This | | | | presence. Therefore, Internet has become the most |
| guarantees a one-stop shop experience to investors | | | | important distribution channel of the future and online |
| when the trading systems are tied in by technology | | | | brokerage service is a rapidly growing industry. |