Among many things that the internet has revolutionized, I believe people undermine how it has impacted the way we trade or invest our money. A few decades ago, retail investors like me had slight chances to trade or invest money in financial markets without connecting to a broker working on Wall Street or another financial market first.
But now, the internet has changed everything. I just need a smartphone or a laptop to invest in my favorite stocks or cryptocurrencies, or trade commodities like oil, wheat, gold, silver, and more. Here, I’ll explain in detail how the Internet has made investing easier for retail investors to invest their money in financial markets.
Brokerage Platforms
Online brokerage platforms have significantly reduced retail investors’ dependency on private brokers and brokerage firms. Back in the day, my father used to have weekly meetings with his broker from Wall Street to explore new investment and trade opportunities.
However, with several reliable brokerage platforms now, I can explore such opportunities without relying on any broker or brokerage firm. Also, the elimination of these traditional intermediaries has significantly reduced the transaction and other fees involved in the process.
Furthermore, brokerage platforms empower retail investors to buy or sell their assets or make investments at any time. Having said that, I recommend you to have an active and reliable internet connection to use online brokerage platforms.
I suffered numerous losses due to a spotty connection, simply because the brokerage platforms failed to fetch real-time financial data. As a result, I lost some trades due to inaccurate analysis.
After discussing it with my trading buddy, he advised me to explore Spectrum Internet , as he was using this connection and never lost a trade or missed out on an investment opportunity due to the internet being slower than expected.
So, it’s incredibly important that you have a fast internet connection, simply because brokerage platforms fetch and update data in real time. Here are some of the most famous and reliable brokerage platforms.
| Cryptocurrencies | Stocks | Commodities |
|---|---|---|
| Binance | Robinhood | Exness |
| OKX | Charles Schwab | AvaTrade |
| KuCoin | eToro | Pepperstone |
Real-Time Data
My father had subscribed to a weekly financial journal, as it was the only medium to find out what was happening in the global financial markets. But now, I don’t have to wait for a whole week to know how the financial markets are performing.
I can simply head to Bloomberg, Financial Times, and other credible sources to determine the financial markets’ position. I can analyze different stocks, demand, and supply of different commodities, and other relevant factors whenever I want.
Other than this, real-time data can significantly help in maximizing profit margins. For instance, I can easily sell assets as soon as I analyze that the financial markets will dump. This way, there’s no need to rely on traditional intermediaries to open/close trade and investment positions, and have more control over my money.
Additionally, I can also utilize brokerage platforms to gain insight into stocks’ performance, market volume, trends, and other relevant information. In short, with so much real-time data, it becomes easier for retail investors like me to analyze the market and call the right shots carefully.
Educational Resources
Today, there is a ton of educational material, be it in the form of videos, articles, courses, etc. available on the internet. It has hugely encouraged retail investors like me to educate themselves about the financial markets and eliminated the need to rely on brokerage firms or advisors.
For instance, I can easily access Apple Inc.’s annual reports and analyze the company’s financial health. And based on my analysis, I can decide whether it’s worth investing in the company or not.
Other than this, educational resources can help us understand technical market indicators such as RSI (Relative-Strength Index), Bollinger Bands, and more. And, not to mention, websites like TradingView can help us analyze any stock, commodity, or cryptocurrency whenever we want.
Moreover, communities and groups on social media can also offer valuable insights about trading and investments. People can follow successful traders and investors, brainstorm new strategies, and learn from their peers.
Frequently Asked Questions
What are commodities in financial markets?
Commodities include energy resources (oil, natural gas, etc.), agriculture products (wheat, barley, etc.), metals (gold, silver, etc), and other products that we use in our daily lives.
Do online brokerage platforms charge a fee?
Yes, most online brokerage platforms charge a nominal fee for using their services.
