Active Traders

Written by Michael Federico
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There was a time when most people working in the investment field looked at independent active traders as a bit of a joke. There was a consensus among those in the business that no serious investor could go it alone. Basically, most major financial advisors and brokers thought of themselves as indispensable. While there will always be people who invest through firms, active traders have found success on their own trading on the Internet.

While an individual trader might not have all of the resources available to major investment firms, he does have the ability to do ample research online. He can get expert opinions on specific stocks and companies, and he can create a watch list, which allows him to track the performance of a set of securities. He can gauge market pressure and send options orders directly to the exchange he is trading on. An active trader can even decide whether he wants to place orders based on speed or price. For instance, if he has a number of shares he is looking to unload, he can set it up so the transaction will be carried out when the stocks reach a certain price or when a certain amount of time has passed.

Fees for Online Brokers

Even the most expensive online sites that cater to active traders will still charge far less in fees and commissions than most investment firms. Most sites charge by the transaction, allowing a person to open an account for free. Commission percentages will be based on the amount of shares that are being traded, but a person will often be able to trade close to 1,000 shares and pay a commission of under $10.

Online accounts will continue to add services over the next few years. Day traders will have access to more information. This means that they will continue to grow, and investment firms will most likely be forced to offer online services of their own.

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