What is an online broker?

A company, which gives a trader the opportunity to make transactions in the currency, stock, and commodity markets through the Internet, is called an online broker. Any trader by installing a trading terminal on his personal computer gets direct access to trades by current exchange quotations or electronic trading platforms in real-time.

Currently, there are many applications through which investors and traders get access to trades.

Computer applications – these are the most common platforms, which are installed on the computer for free and allow to manage accounts, analyze the price movements and trade in real-time. There exist well - known standard trading terminals such as MetaTrader 4, MetaTrader 5 and other terminals of online brokers, developed by their own standards with additional functions, such as, NetTradeX trading terminal developed by IFC Markets, which allows to trade not only individual instruments but also portfolios of various instruments.
Web applications – these are online programs with less functionality, but they give the opportunity of trading through web browsers, which in its turn allows to trade from any device.
Mobile applications – these are platforms for devices running Android and iOS, which provides access to trades anytime and from any part of the world. Mobile platforms are particularly relevant for people who combine trading with the main job.

Advantages and disadvantages of online brokers

The main advantages of an online broker are high leverage, fixed spreads, low minimum deposit requirements and the introduction of information for making analysis and using trading signals.

The negative side is the easy and fast access to financial markets, which, may cause a trader to make quick and careless transactions in case of not having sufficient knowledge. In case of trading with the help of a classical broker through trading terminals installed on the personal computer, traders may assess the situation through multiple analytical sites or consult with the managers of the brokerage company on the current situation, characteristics of different markets and trading instruments, get advice where to invest their funds.

Online brokerage services:

Provision of access to trading platforms with instant execution of orders;
Provision of an easy-to-use trading software for analysis and trading;
Provision of a demo-account (for developing your trading strategy);
Provision of leverage;
Graphical support (for technical analysis);
Technical support;
Publication of the economic calendar and the daily analytical overview of the markets.

The choice of an online broker

While choosing an online broker, pay attention to the number of key features: minimum deposit, the size of the spread, swaps, order execution mode, trading terminal, restrictions on the use of several trading strategies, the quality of customer support. It is especially important to check the stability of the provided platform, instant and qualitative execution of orders and the speed of the deposit/withdrawal of funds.