Nowadays, trading online has become common. More people are expanding their investment portfolios and looking for diversifying their instruments. If you are a seasoned investor, you may not be afraid to increase your risk appetite or expand your share market investments. You might prefer them over traditional investment instruments such as FDs and PPF. Today, you can conduct trade through the online trading app and portals and not necessarily rely on the broker.

If you are skeptical or have some misconceptions concerning online trading, this article will debunk some classic myths.

They are as follows –

Doing trading yourself is challenging
Most traders are not confident in their trading skills. They think there is some assistance required from their dealers for doing trading themselves. But the fact is, you can do research, save a lot of funds, which you would otherwise pay the broker as commission. Once you get the hang of it, with the help of brokers, you can easily conduct trades by yourself.

Eliminates the role of brokers

Taking some cues from the mentioned points, many avoid online trading since they think they cannot speak to a broker if they do it themselves. Though you might not receive hands-on services, almost every online trading company offers live chat and calling facilities. You can reach the customer care helpline if an incorrect trade happens or queries concerning your trading account.

Brokerage firms are complete bypassed

Every trade requires a brokerage firm, even if you do not use a stockbroker directly for operating trade. While you can easily enter the online trade order through a broking portal or online trading app, you cannot directly access the securities market. Only your brokerage firm can execute these trades.

Online orders get immediately executed

An online order electronically entered gets executed immediately, but there is no guarantee of the same, especially if the order gets placed with time restrictions or price limit. High trading volumes usually causes a delay in execution. Also, if you place market orders, you need to know that execution delays and market volatility owing to high trade volumes result in the trade being executed at prices, which are quite different than the ones quoted when the order gets entered. Note, your internet or Wi-Fi speed affects the transmittal and execution of the order.

Online trading is gambling

Several investors steer clear of share trading owing to the label of gambling. If you do the homework right and research the investments, trading becomes a science and not gamble. Keep your risk appetite in check for reaping the rewards from the investments. Risks get mitigated through diversification and follow essential rules of simply relying on business news channels rolling out trading tips.