by Jeremy Otte

Created on: August 18, 2008   Last Updated: August 25, 2008

It's fun. It's cheap. It's easy. No, I'm not talking about standing in line at your local government office. I'm referring to online trading. This method of buying and selling stocks has skyrocketed in recent years - and, for good reason.

First of all, the internet penetrates virtually every corner of the developed world today. It's in homes, restaurants, business, airports, bus stops, airplanes, coffee shops and just about anywhere else you might be hanging out. This makes online trading extremely convenient. No more waiting for your broker to call you back.

Secondly, it's relatively inexpensive. Pound for pound, if you compare a full-service broker to a website that allows you to do instantaneous online trading, you get more bang for your buck online. The fees are low and most sites allow you to configure your account so that it conveniently matches your trading goals. If you want to trade infrequently, they have an option for that, which is usually your cheapest one. If you trade daily, or multiple times in a day, they have something for you too.

Another reason may people love online trading is that it is so easy. Virtually at your fingertips is anything you would ever want or need when it comes to online trading. For instance, you can look up any ticker symbol in a matter of seconds (or nanoseconds) and see what it's currently trading at. Many websites also have online tracking software. This is an extremely useful tool that you can use to track gains and losses, buy and sell dates, market value of your portfolio and even tax forms. An added bonus when it comes to this trading venue is that most sites offer a savings account option which allows you to fee free dump funds into and pull funds out of at your whim. These accounts typically pay a higher interest rate than do your community banks. How do you beat that?

Finally, the most important reason to trade online is for good, ol' fashioned fun. It's exhilarating to see your portfolio value climb up and up (although not so much when it falls down and down) and know that you did that yourself no finance guru attached. Only time will tell if this form of trading will remain as strong as it is today. Whatever the outcome, you can bet your britches that some form of online trading will be around as long as the internet is.

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