An Internet trading system is a system that allows you to buy and sell valuable papers or currency via the Internet. It provides direct access to exchanges online from a personal computer from home or office. Using the capabilities of the system, you can independently buy or sell securities on the stock market, or buy and sell currency on the market in real time at current exchange quotes.
In Russian practice, there are 2 types of Internet trading:
- 1. Access to the market for online trading of securities is provided through an intermediary. The broker is a nominal holder of securities and provides its client with access via the Internet to its trading terminals connected to trading systems and exchanges. The client only gives orders for transactions in real time. In addition, the client can fully receive all reports on completed transactions, receive expert advice, follow the news feed, etc. Currently, this access option is the most common in the world.
- 2. Direct access to trading (direct access). The investor independently trades securities on the stock exchange in real time using special software without the mediation of an Internet broker. The advantage is the efficiency of the system, since you can either make or withdraw a transaction. The disadvantage is higher risks (the investor acts independently without the help of professionals).
Comparing Russian Internet trading with American one, we can identify some differences. In foreign practice, Internet trading happens:
- - “mass” - carried out through Internet brokers, which are discount brokers and provide automated collection of orders with their further transfer to the market maker for execution;
- - “elite” - carried out through the Electronic Communication Network (ECN), which provides direct broadcast of the application either to the selected ECN, or to the NASDAQ queue under the name of the corresponding ECN, or to a specialist on the NYSE. Modern systems Internet trading options are varied and allow you to independently place orders, monitor market quotes and control the progress of trading. A trader can trade on the stock exchange using the chosen system. For example, using:
- 1. Online store: This one software operates in any Internet browser and has the following properties: 24/7 access to the portfolio; simplicity and accessibility (even beginners can work with such an online trading system); the need to confirm orders, which helps protect the trader from accidental errors; the ability to make decisions based on quotes and charts that are updated online; maintaining an archive of completed operations; no subscription fee.
- 2. PDA version of the online store: There is also a PDA version of the online store for traders who want to receive operational information even when they are far from the main computer.
- 3. “RT Client” program: This Internet trading system from investment company"Ricom - Trust" (www.ricom.ru) is the "know-how" of the named company. It is unique in its accessibility to investors. Beginners will especially appreciate it. The main properties of the program are: obtaining prompt and reliable information about exchange trading; availability of a Single Trading Account, with which you can work on different markets simultaneously; possibility of carrying out technical analysis; broadcasting economic and stock exchange news in real time. The RT Client program is more suitable for experienced traders, while beginners should give preference to an online store.
- 4. Trading and analytical portal Nostra: This Internet trading system was introduced in 2010, which means that its creation was carried out taking into account the results of the latest market research and analysis of its functioning. This solution allows you to obtain: automation of the purchase and sale of securities; a large selection of indicators for predicting prices and tracking their dynamics, tools for technical analysis; the ability to create your own analysis tools. With the help of these Internet trading systems, you will have the opportunity to make effective investment decisions when studying quotes, market news, and conducting technical analysis. In addition, trading using such instruments is safe - the trader’s data is protected and confidential.
from the dealing center FBS is an international brokerage company providing financial and investment services of the highest quality throughout the world. Being an ECN/STP broker, FBS guarantees its clients direct access to the international foreign exchange Forex market, automated processing of transactions and payment orders, minimal spreads and no restrictions on trading strategies. The Company's goal is to develop and implement first-class service standards to meet the needs of the most demanding investors. FBS builds its work on transparency, honesty and professionalism. A team of highly educated and experienced professionals is constantly working to develop and improve FBS services. It turns out that FBS offers insurance trade deposits, and upon the onset insured event, you can get back even 100% of the lost funds of your deposit. FBS insurance can be just such an additional tool for psychological relief, which at least slightly reduces the chances of losses. This promotion is especially indispensable for scalpers and intraday traders who conduct very aggressive Internet trading and trade large-volume short transactions; it is quite possible for them to collect the required amount of the insurance premium.
Today we will talk about what online trading is and also look at its key features.
To successfully trade on the modern foreign exchange market, novice speculators require a certain theoretical basis. Without the necessary theoretical knowledge, many novice speculators begin to open transactions at random, which leads to significant losses, as well as the complete loss of their existing deposit.
Your acquaintance with foreign exchange market Beginners need to start with information about what online trading is. Only after familiarizing yourself with the key features of this process can you start trading for real money.
Internet trading. Definition
The term “Internet trading” usually means a method of performing trading operations on the international foreign exchange market, through the services of dealing centers and specialized programs. Internet trading involves trading online.
Currently, there are a huge number of different dealing centers that provide their clients with access to the foreign exchange market. These brokers provide their clients with various platforms that enable them to execute trades.
When choosing a suitable trading terminal, you first need to take into account the following characteristics:
- Ease of use. It should be as convenient as possible for a trader to enter into transactions using the selected terminal. The trading platform should be as clear and comfortable as possible. It should allow the speculator to assess the situation on the market and quickly open positions.
- Large number of users. The presence of a large number of fans for a particular platform is indirect evidence of its High Quality and reliability. When choosing a suitable trading terminal, it is recommended to read reviews about it.
- Availability additional functions. If the selected platform is equipped with a large number additional tools to perform a strategic analysis of the market situation, it is more convenient.
Features of Internet trading
Modern Internet trading involves the use of strategic analysis and planning techniques, as this can significantly reduce the risks that arise in the process of concluding transactions.
It should be noted that online trading involves creating successful transactions not only on the foreign exchange market, but also on the stock exchange. As in the case of Forex, trading on the stock market is carried out using a specialized terminal.
The trader needs to purchase the selected shares at a time when their price is at a low level and sell when the security's quotes increase. As with Forex trading, the difference between the purchase and sale price of a stock is the speculator's profit.
In the stock and foreign exchange markets, traders use a variety of fundamental and technical analysis techniques to determine the optimal moments to open orders. It should be remembered that even the competent application of the above-mentioned techniques does not always allow you to create successful positions. This is due to the fact that the market is constantly changing and there are no methods that can predict price changes in the future with 100% probability.
Thus, no matter what kind of trading technique you use, there is always the possibility of losses.
Strengths and weaknesses of online trading
Internet trading has a huge number of advantages, among which the following deserve special attention:
- Opportunity to achieve financial independence. If you become a successful speculator, you won't have to take a job you don't like.
- Small amount of tax fees. Most large dealing centers automatically deduct tax fees when withdrawing profits. This way, you don't have to deal with this issue yourself.
- Free schedule. You can choose your own time for trading. There are a huge number of successful speculators who spend less than one hour a day opening orders.
- Freedom of movement. You can make transactions from anywhere in the world. To do this, you will need a laptop and access to the Internet.
- Huge selection trading instruments.From a variety of trading instruments, a speculator can choose the one that best suits him.
- To obtain the necessary knowledge and trading skills, you can use.
Like any other method of generating income, online trading has a number of weaknesses, among which the following deserve special attention:
- To generate income on the foreign exchange market, you will need a certain amount of savings. For online trading to bring you significant income, you will need capital of at least $1,000.
- To get the necessary successful trading skills and knowledge, you will have to go through quite a long learning process.
- If you start trading in the foreign exchange market without having the necessary knowledge and skills, you will quickly lose all your savings.
- No guaranteed monthly income. Even experienced speculators have bad periods during which they experience losses instead of profits.
- Very serious psychological stress. Since there is a high probability of losses when trading in the foreign exchange market, the speculator is always under strong emotional stress. Experienced speculators know how to cope with stress and focus their attention on the trading process.
The advantages of trading in the foreign exchange market significantly outweigh the existing disadvantages. It is for this reason that online trading is extremely popular among speculators from various countries around the world. 
Conclusion
If you are interested in online trading and want to make money on the modern foreign exchange market, then first of all you should complete a specialized training program. Only after obtaining the necessary amount of knowledge and experience can you begin to select a suitable broker.
Professionals recommend trading on a demo account at first. Only after you are convinced that the position creation technique you have chosen is effective, can you begin to use it for trading with real money.
Today, almost everyone can try their hand at online trading. This is due to the fact that in order to get acquainted with the foreign exchange market, you need to go through the registration procedure with the selected broker and start trading.
To achieve success, online trading should be perceived as a job that requires the most serious approach. By opening positions at random, you will quickly lose your savings and be completely disappointed in the foreign exchange market.
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Internet trading or, in other words, Internet trading is a method of accessing trading on various types of exchanges (, commodity, over-the-counter market) through Internet technologies.
Today, when access to the Internet is everywhere, everyone has the opportunity to participate in bidding directly by installing a special software.
More and more global exchange platforms are switching to an electronic trading system. After all, it is much more convenient to participate in the process while being at any point globe. Online trading has gained the most popularity in the Forex market.
Many, both foreign and domestic, provide intermediary services in the field of Internet trading.
The advent of Internet trading has led to the emergence of a large number of newcomers in the field of stock trading, trying to make quick money.
Access to trading has become extremely simple: 5 minutes to register and top up your balance and you can already buy shares, options, currencies, etc.
However, despite easy access to the process, successful online trading requires not only special knowledge and skills, but also a certain psychological preparation and self-discipline.
I won’t be mistaken if I say that now more than 90% of traders work via the Internet.
Internet trading programs
Created special programs, which allow you to assess the condition stock market at the current moment, track statistics on price changes and enter into transactions.
QUIK. The developer is the Novosibirsk company ARQA. Versions of the program are available on Windows OS, in IE, through the website on mobile phone or as an application on iOS or Android. The system makes it possible to view all the necessary price information, build price charts in real time and analyze them visually, trade on different markets, manage various trading accounts, track trading limits and read news from the Interfax agency.
SmartTrade. This is a professional terminal, which was developed with the participation of Russian traders. Among its features, it is worth noting 20 built-in indicators, a flow of quotes from the most popular exchange platforms around the world, a comfortable account manager, placing logical and unique orders, linking a list of quotes with windows, and the ability to export and import in real time. The warning system and filtering of news from news agencies are also interesting.
MetaTrader makes it possible to trade on several markets at once: this includes both the stock exchange and Forex. It gives its clients good opportunities to interact with the market: analytical modules, trading, various trading robots and strategies, as well as developing your own scripts and indicators. This versatility provides the user with a wide arsenal of tools for convenient work in financial markets.
BOOM – trading platform for professionals. It is characterized by an extended type of orders. There is an opportunity to trade an entire basket, provided detailed schedules shares and multi-account management system.
- Many large brokers have their own online trading interfaces. These are often web applications that only require a browser to operate.
- Another popular option is apps for mobile platforms.
In the context of the development of online trading on stock exchanges, a very interesting topic is when trading is carried out by special software according to a given program, taking into account risks, statistics and other input data.
Opinion: choosing convenient software is important, but even more important is choosing a broker and tools for trading.
Online broker
An online broker is a regular broker, but working via the Internet.
An intermediary through which, using the software described above, you can trade on the stock exchange.
Advantages of online brokers:
- Cost and final cost for clients: clients use software that allows them to serve tens of thousands of investors simultaneously, which is several orders of magnitude cheaper than an entire office with live brokers who will serve a comparable number of investors.
- Availability: around the clock, as long as there is access to the network, and while trading is ongoing, you have the opportunity to work. Moreover, you can work in any market in the world, again, from anywhere where there is sufficient Internet connection quality.
Exchange exchanges deserve special attention, where you can change one electronic currency on a friend, you can exchange crypto-money (and their analogues).
Some online exchanges and exchangers act as brokers.
Many people here also make money from trading. Moreover, some exchanges allow you to store funds directly in your exchange accounts. That is, we are not just talking about exchange, but about trade, trading.
Against the backdrop of the growth of some cryptocurrencies, a large number of users began to buy and sell btc and similar solutions.
Internet trading is the purchase and sale of securities via the Internet. Internet trading allows you to make transactions on your account from home or office anywhere in the world.
With the help of Internet trading, you can carry out any operations on the stock market. Trading shares, corporate, municipal and government bonds, as well as urgent financial instruments feasible using various trading systems: QUIK-Broker, Transaq, SmartTrade, MBOSS-Veksel, GIATS, Wallstreet, etc.
Internet trading in Russia began to actively develop after the creation at the Moscow Interbank Currency Exchange (MICEX) of a universal bidirectional hardware-software interface (gateway), which allows connecting brokerage systems of client orders (orders to buy or sell securities) to the exchange trading system, which are filled by the clients themselves in electronic form and transmitted over computer networks.
Computer processing electronic applications faster than manual processing of paper applications. Electronic orders undergo entry control using special software. One of the stages of such control is checking the authorship and authenticity of the application. You need to make sure the following:
· the application was not distorted during delivery via a computer network from the sender to the recipient;
· the application was sent by exactly the individual (legal) person on whose behalf it came.
The testing technology must be so convincing that, in the event of a trial, judges will agree to use its results to make a decision on the controversial issue. For these purposes, an electronic digital signature is used.
The Internet trading system consists of the following elements:
1) gateways in trading systems of exchanges;
2) an automated complex of a brokerage company, including systems for: order collection, limit management, security;
3) broker’s workplace;
4) client’s workplace.
The client's workstation provides the following basic functions:
· viewing current supply and demand for each type of security;
· submitting applications via the Internet;
· monitoring the status of the securities portfolio, limits Money and securities in real time;
· obtaining information about trading on all Russian trading platforms in real time, news feeds, analytical reviews;
· graphical display of information in the form of graphs various types;
· real-time connections with systems of technical analysis of the securities market;
· information protection.
Let's briefly look at several Internet trading systems.
"Alfa-Direct" – a multifunctional Internet trading system developed by Alfa Bank specialists. The system allows you to receive complete financial information, carry out transactions with securities on all major exchanges, conclude over-the-counter transactions, as well as carry out all non-trading transactions via the Internet.
Key real-time services are:
· certified module for direct entry of orders on the Moscow Interbank Currency Exchange (MICEX), Moscow stock exchange(MFB) and the Russian Trading System (RTS);
· information from all major Russian exchanges, quotes archives;
· news from information agencies, world stock indices;
· built-in technical analysis unit, export to MetaStock and OmegaTradeStation;
· margin lending securities and cash;
· Stop loss and other special trading orders;
· “Signal” system – notification about quotes, portfolios, etc.;
· single account; a single “collateral” position on all exchange platforms;
· a special package of services for professional participants, including partnership;
· automation of all non-trading, back-office and accounting transactions;
· function of self-administration of the system;
· full reporting, any money and depository transfers;
· highly professional analytical support for decision making.
« QUIK" ( Quickly Updateable Information Kit) is a family of information and trading systems that provide prompt receipt of information and participation in trading via the Internet in the main segments of the Russian financial market.
The QUIK system today is the most popular Internet trading system in Russia, which is used daily by more than 150 banks and financial companies, as well as 5,000 of their clients.
This system was developed by the Siberian Interbank Currency Exchange (SICEX) and the enterprise "SICEX - Information Technology" Information and trading systems implemented on QUIK platforms, operated not only on SICEX, but also on others currency exchanges, in banks and financial companies. On this moment One information (QUIK-Info) and three information and trading systems (QUIK-ETC, QUIK-Shares and QUIK-Broker) have been implemented on the basis of the QUIK platform.
The QUIK-Info system has a basic set of functions.
Functionally, it is a complete software package in a Windows environment. Within the system, you can participate in trading on the following exchanges:
· on the Unified Interexchange trading session(ETC) – foreign currency;
· on the MICEX – in foreign currency, government debt obligations and equivalent securities, corporate securities, bonds of constituent entities of the Federation;
· on SICEX – foreign currency, regional and municipal debt obligations.
In addition to stock exchange information, the system can supply operational news feeds from information agencies (Prime-Tass, Rosbusinessconsulting, MFD-Infocenter).
An innovation in the QUIK system is a universal news gateway, with the help of which brokers can create streams of messages - news, industry reviews, analytics, comments and forecasts of specialists on the situation on the stock market. This opportunity allows you to integrate various brokerage services in one system, offering, along with operational stock exchange information and news from leading news agencies, the potential of our own analytical service.
« Transaq" is a modern software package designed for
effectively servicing a large number of clients and allowing the implementation of several schemes for lending clients' trading operations in cash and securities. A feature of the system is a high degree of authorization of lending processes, monitoring of collateral and reforming obligations (transfer of positions) of clients. All calculations are made in real time when placing and withdrawing orders or making transactions and when prices change on the market. There are a number of settings that allow you to take into account the limited liquidity of securities individual species. The system also includes specialized risk management tools.
The capabilities provided by the Transaq software package are:
· use of submitted orders and transactions made in the MICEX trading system through other trading systems, through the Transaq system and taken into account in the risk management system;
· crediting and withdrawing available funds and securities of clients, as well as changing client lending limits during trading;
· use of the built-in module for calculations based on the results of the trading session and generation of client reports;
· automatic replenishment of the quotes database;
· data exchange with external Back Office systems;
· separation of trading and information subsystems, allowing to increase the speed of processing trade transactions;
· use of a special module for technical monitoring of main processes;
· use of a messaging system between trading participants.
The Transaq system provides the following advantages to the broker:
· lending to clients online without the participation of an operator with automatic control of the level of lending;
· efficient use of the broker's credit resources through the simultaneous use of individual and general limits lending;
· monitoring the distribution and use of broker credit resources during the trading session;
· the ability to set individual lending levels for clients during the trading session and overnight;
· automatic notification of a decrease in client security below specified levels;
· use of built-in tools for structural analysis of client portfolios and risks with the functions of generating applications for security adjustment;
· automatic reformation of client obligations by performing internal repo transactions or transactions in the MICEX RPS section;
· use of a built-in set of the most common commission charging schemes.
The Transaq system provides:
· direct participation in MICEX trading with minimal time delays, including when using low-bandwidth channels;
· developed interface and convenient tools for prompt work with applications;
· possibility of forming conditional orders, which allows the client not only to optimally use his funds, but also to respond more quickly to the market situation, since when the conditions specified by the client are met, the application is automatically placed on the market by the Transaq server;
· built-in system for graphical presentation of current and historical market information, including a set of popular technical analysis indicators;
· function of exporting data to external technical analysis programs in real time;
· comprehensive tools for structural portfolio analysis;
· preliminary calculation of the ranges of acceptable operations and operations to achieve a given level of security, taking into account the market situation and all limits;
· security of transactions via the Internet.
They get the opportunity to make transactions with securities or currency through the World Wide Web.
Internet trading was used for the first time American exchange Nasdaq in 1971. Before this in stock trading technologies were mainly used when transactions were executed “on the floor”, i.e. the order was transmitted to the broker directly to the exchange, where the transactions were carried out. Relationships with a buyer or seller were built on the principle of concluding transactions with a dealer over the phone.
Today, the vast majority of platforms use a system of electronic execution of transactions, including Internet trading for direct access of investors to quotes.
The introduction of automatic trading has significantly simplified and reduced the cost of working with clients for brokerage companies, which led to the emergence of so-called discount brokers on the market - firms offering the minimum necessary service in the securities market, usually automatically and at a significant discount.
In order to use online trading services, you must be able to independently understand the intricacies of the stock market, since the system of direct entry of orders does not imply consultations with specialists - employees of professional market participants.
In Russia stock market V modern form appeared much later than in other countries: only after privatization. This led to the fact that exchange platforms in the Russian Federation were initially focused on Internet trading as an advanced system for completing transactions.
There are two types of trading systems used for online trading. First, these are web applications that run in the browser. Such programs do not require installation on a local computer. The disadvantage of the approach is the relative slowness of the update, which can be extremely important for the so-called “fast” markets, when quotes change rapidly.
Secondly, there are programs for online trading that are installed on your computer. These are brokerage companies’ own solutions, but there are also packaged products, such as Quick, NetInvesor, MetaTrader, etc. Investors are often offered a choice, depending on what is more convenient and familiar.
Most programs for online trading provide the opportunity to see not only the current price of an asset traded on the exchange, but also a number of entered orders for purchase and sale - this is usually called the depth of quotes. In addition, the systems allow you to track the value of your portfolio in real time. Often, stock exchange news is displayed in a separate window.
When concluding an agreement for the provision of Internet trading services, it is necessary to provide for the possibility of traditionally concluding transactions by telephone - in case of computer failures.
In Russia, the leading companies in terms of trading volume using Internet trading are ZAO Finam, FC Otkrytie, LLC BKS Company, Alor Group of Companies, and ZAO IC Troika Dialog.