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Online trading platforms and stock exchanges


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The stock exchange market is one of the most liquid markets in today’s economic environment. Trading on these markets is one of the most important activities nationally and globally as it is an effective way in which companies can increase capital with minimum loss. It also gives traders the opportunity to earn profits.

Traders can choose to use one or both of the available channels to trade in stocks. These are online trading platforms and stock exchanges.

The similarities and differences between online trading platforms and stock exchanges are outlined below:

Charging of commission

The two methods have similarities because stock exchanges always charge a commission on every stock traded through them.

The same is true for online trading platforms because online brokers will also charge a commission on the traded stocks. Sometimes this is hidden in the costs, but in spite of what is usually said, they may not charge a lower rate than the stock exchanges. These rates vary from one online broker to another and sometimes may be higher than those in traditional stock exchanges

 

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