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Online Trading -  The Good  & The Bad

  Whether or not online trading is for you, is a question that only you can answer.  Hopefully though, the following tips will provide you with some insight.
 

the
GOOD

Speed!  In only a matter of seconds, your order is reaching its destination and headed toward the floor!

Control! You're not relying on anyone to place your orders.   Your not waiting on anyone to call you back and  report your fills.   Virtually everything that's transpiring is done so by your hand.

Cost! Most online trading accounts are charged a lower commission rate.

Don't have to deal with a broker! If you've ever had your broker talk you out of a trade that ends up being a winner, you know about this one. Uhg!

Electronic Statements! Most online brokerages will supply you with "market to market" position analysis so you can follow your account status as it fluctuates!

Sounds cool! Of course it's cool, and all your friends will look at you with admiration (and probably shock) when you mention you're an "online futures trader."



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the
BAD

Errors! If you make a mistake placing your order, there's nobody to catch it.

News!  It's a fast moving world out there.  A good, "live" broker is often one of the best sources for updates on current fundamental events.

Technical Insight! Depending on how much experience you have with the charts, there may be times where a live broker's confirming analysis might come in handy to answer any questions.

Don't get to deal with a broker! Working with a good broker is more times than not, going to keep you out of potential trouble, and perhaps even steer you toward some good trades.

Higher Margin Requirements! This is not always the case, but most discount brokerage firms will charge a slightly higher margin than a full-service firm will.

Eyesight. Most doctors will advise you not to stare at a computer screen all day.


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