Online trading platforms first came into being in the 1990s and have now taken a firm hold on the trading of Shares, Foreign Exchange, Futures, Options and Commodities. Volume and turnover has increased considerably since the introduction of online trading.
Indeed, at Berkeley we have seen a tenfold surge in business over recent years, and this is expected to continue well into the future. In this article I will explain how this has been achieved.
In the past, trading was conducted over the telephone and transacted in an "open-outcry" pit; no doubt you have seen the boys in bright jackets shouting at each other in films such as Eddie Murphy's Trading Places.
This was an exciting, if slightly chaotic method of trading which was often open to abuse. Modern technology and the arrival of the Internet have now made it possible for online trading to be conducted in futures, options and equity exchanges. It is now possible to show prices, bids and offers on dealing platforms and for online traders to access prices and trade them over the internet.
As an online trader, you will need to open an account with a broker, as you can not deal directly with the exchange. Before you look for a broker, make sure that they are regulated by an appropriate body, such as the Securities Commission of the Bahamas or the Financial Services Authority. It is strongly recommended that you only trade through regulated brokers such as Berkeley (Bahamas) Limited.
Online traders can trade through any broker in the world and this means that if they wish to use offshore trading brokers such as Berkeley (Bahamas) Limited, they can enjoy the benefits of a tax free environment.
Online trading platforms enable traders to access futures, options and foreign exchange prices at any time when markets are open, which can be 24hrs per day. It also allows you to trade from anywhere in the world, whether you are on an isolated sheep station in the middle of Australia or in the City of London.
There are many different online trading platforms and software packages available, however one of the most effective is offered by Berkeley and is called IQtrader. This includes charts, back data with many technical aids and allows online traders to place orders in to most world futures and options exchanges.
Foreign Exchange platforms are different from those offered to futures and options traders in that there is no physical exchange to access. Therefore, you have the choice of using a proprietary platform which will show you the prices offered by a single company. Alternatively, you can access a dealing pool where a number of banks will show you prices, the best of which you can trade. Clearly, this is the best way for you to get fair prices, but very few companies offer such a service. "Berkeley Currenex" is one such platform.