In the era of e-commerce when we have come to accept online discounts and cashback policies as the order of the day, it was but inevitable that a digital platform for trading and investments was to follow suit. In fact, the advent of a digital platform for investments has made life easier for many investors who had been wary of the hassle the traditional method of stock brokering entailed. Let’s explore digital investment in detail.
Are Digital investment better than traditional ones?
There might be a few drawbacks to the online process of investment, especially for new investors who would like to be advised on their investment decisions by their brokers. However, there is no denying the fact that online investment options have made life much easier for a number of investors. Nowadays, there are a number of ways in which you can use the digital platform for investments. You can trade-in equity online, opening a trading account online, book fixed deposits in your bank, set up recurring deposits, choose a SIP (Systematic Investment Plan), and even buy term insurance policies. In this article, we shall explore five different ways in which online investment platforms have simplified the investment process for common people like us.
Low Brokerage Fees:
The best part about investing in equities and trading on the stock market through an online platform is the low brokerage fees involved. In fact, you were to invest through traditional avenues, you would probably have to cough up nearly twice the amount of brokerage.
Despite the low brokerage, there is a flip side to the coin. In case you were investing through an actual broker, they would be more likely to share personal opinions on equity investment based on their years of trading experience.
Ease of availability:
Another reason why investing online is preferred is the easy availability. The internet is omnipresent and unlike the traditional market, the offices never close. Thus you can invest at any time from anywhere without having to go through long queues. Moreover, unlike the time delay associated with traditional dealers, you can immediately implement to stop order through the internet or pull out your funds, thus preventing huge potential losses. Indeed, digital investment platforms have made life as well as investments easier for a lot of us.
Secured Dealings:
Most online trading and investment platforms offer secure trading for their customers. The risk of identity theft, credit card information, and funds theft is minimal. Thus, with an online investment platform, you know you are dealing with a full proof system and your money is going to the investment vehicle of your choice. The risk of middlemen taking their share off the top of your hard-earned money or brokers with fraudulent practices endangering your investments is eliminated. A transparent, convenient, and easily accessible platform for investing is something we applaud.
Research Tools for Digital Investment:
Most online platforms usually provide free research tools as well. With online insurance plans, you get online premium calculators. With SIP plans, you can have the stimulation of how your wealth might grow over the years. With well-structured research tools at your disposal, you can form a fair idea of the market yourself and decide where to invest according to your investment needs.
Is online investment a good option?
Online investments do have a huge number of potential benefits. Although the third party wisdom from your broker is eliminated, you can have complete control of your portfolio and well-structured research tools in your hand. Thus, unless you do not want to take financial decisions from the comfort of your home, you have a particular aversion to conducting even the minimum amount of market research or are completely prone to taking foolhardy decisions when it comes to monetary investments, there are no reasons why online investments should not be a good idea.
