Online trading is the act of purchasing and selling financial products on the Internet. The trader buys and sells using an online trading platform. Online trading may include trading in bonds, stocks (shares), futures, international currencies, and other financial instruments.
Most people trade online through an online broker. An online broker is a brokerage firm that offers its services on the Internet. Unlike traditional brokers, the investor does not meet the broker face-to-face or via the telephone. Everything happens on the web.
In this article, ‘online’ means ‘on the Internet.’