A Rundown History of Online Stock Trading
Ever since technology has made a change to the world, online stock trading has made a revolutionary jump. A long while back before electronic stock trading and the internet combined as one investors used to call their brokers on their landlines to place a trade. The same goes for selling a trade and brokers would do the same with their clients. As the world has come on in leaps and bounds it is now possible for any individual on the planet to buy, trade and sell stocks without using the services of a stockbroker. Online platforms like CMC market have made it possible for everyone to pursue online trading. With only a few clicks people can now pull up information about stocks, companies, trades and important information that is vital to know before doing a trade.
At The Beginning
In 1969 digital trading systems, also known as ECNs were used by brokers to show the bids and ask for prices for stocks. It was only in the late 1980’s that people realized what a plus it could be if the financial industry combined into the internet. It was during this time that computers were becoming more popular and it was possible for every family to own one. During this time the leading brokers began to look more closely at ECNs.
Several industries throughout this period began investing in creating software that linked up the traders with current price stocks and information. Sellers and traders could therefore match up with ease and it was from this time that online trading platforms were invented.
It was in 1982 that the first online trading program became publicly available. It was called NAICO-NET and was offered by the company called North American Holding Corp. It was the first online, electronic consumer trading platform for buying and selling stocks, creating mutual funds through a PC. It was terminal based and PC’s could connect to the platform via an application from anywhere in the world. The client subscription base rapidly rose to over 5000 users. The rest is simply history!
The Next Ten Years and Today
Slowly but surely the next ten years saw an incline in software and platform developers whom created similar trading services. The stock market crash of 1987 and the Gulf War slowed the pace down with online trading and it was only in the 1990’s that things really took a soar upwards.
For the run of the mill retail traders the trading pioneering platforms such as trade plus made is cost efficient and easy for trades to take place. It was becoming more and more popular with individuals all over the world. Information was readily accessible and trades could be completed with the click of a button.
In the mid 1990’S over twenty percent of the population was aware of the huge possibility that online trading offered. As the first stock broker companies online soon became the fastest growing companies in America there was a rush for online stock brokers and the fight to become the best platform began.
The ease of online trading now opened up a whole new world of careers opportunities for those that wanted to quit their day job. There was a steady flow of cash that pushed it’s way into the stock exchange market creating a safe foundation for the traders who would subsequently follow and move onto online trading.
Today it is possible to complete trades on the go with mobile applications. It is possible for traders to create demo platforms before investing money and with the internet and technology as it is, up to date reports and information on stocks are easily accessible. The trading world has come on so rapidly that online brokers are now continuing to fight for the top place and have began to offer educational courses and programs to their clients. Jobs have opened up for online mentors, brokers and traders and the global markets have boomed.
Although no-one can determine what the future holds for the stock market – today it is possible for anyone and everyone to dip their toes into the trading world. Readily help is available all over the net, so what are you waiting for? Try it today!