Thanks to the proliferation of smart technologies in recent years and a willingness on the part of authorities and exchanges to open their doors to technological integration, the role of the stock broker in the life of individual traders is not growing at the rate of self-directed investing (according to Forbes). Online trading platforms afford investors like you direct access to financial markets. As a result, a new generation of well-educated and efficient stock and option traders has sprung up.
The foremost benefit of acting as your own stock broker is that it allows you to minimize the transaction costs associated with each trade. Rather than paying a hefty stock broker commission when trading online you’ll typically pay much lower transaction costs.
Choosing to go it alone via a platform such as Ally Invest instead of a “bricks and mortar” stock broker also enables you to react efficiently to changes in the market, and to act on news announcements that may impact upon the value of your assets. By granting online access to the financial markets, and enabling features like contingent orders and trailing stops these platforms also enable the trader to automatically close out losing positions.
The trader investing on his own accord is also in a position to learn and understand the mechanics of the markets. Because online trading forces you to more closely watch the market, you will learn more about the best timing to enter and exit your trades. Furthermore, the powerful trading tools and charting capabilities offered by Ally Invest can help individual retail traders to watch and predict market movements more accurately than at any other point in history.
Thanks to low transaction costs and a direct route to the markets, by using powerful trading platforms like Ally Invest’s you really can become your own online stock broker. We’ll allow you to trade stocks and options in a secure and professional manner — without having to go through a traditional stock broker.
Benefits Of Being Your Own Stock Broker
- Lower transaction costs
- Direct access to financial markets
- Allows for more responsive trading
- Learn and improve investment skills
- Become more aware of trading profits and losses