Traditionally stock trading is done through stock brokers personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology helped stock broker in solving these problems with Online Stock Trading.
Online Stock Trading is internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker.
The Online Stock Trading companies are stock broker for the investor in this case. They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE.
Below are few advantages and disadvantages of Online Stock Trading.