Online trading via the trading app is increasingly replacing the broker’s visit to the bank. The depot can be managed very conveniently from the couch or on the go via the broker app. Regardless of whether individual stocks, ETFs or even crypto currencies: Private users can invest their money flexibly and at any time in securities and hope for profits.
In these additional heise + articles you will find detailed analyzes, comparisons and advice on the topics of online trading, stock exchange trading, trading apps and crypto currencies.
Neo brokers attract beginners with low trading fees and offer apps with user-friendly menu navigation. With their business model of easy access via broker trading app, the fintech startups are putting the custodian top dogs under considerable pressure.
This article gives you an insight into what is necessary for mobile trading. Explanations about online brokers, custody accounts and trading also offer beginners an orientation.
The apps for iPhone, iPad and Android devices only form the infrastructure. The right trading strategy, investing the money and buying and selling stocks at an advantageous price, is left to the trader. We will not recommend any investment strategy, but we do point out the risks that exist for beginners. Especially with long-term trading, it is not enough to just keep an eye on a few charts.
What is online trading? And how did it come about?
- Trading means the short-term buying and selling of stocks and shares
- It used to be a matter for the brokers on the trading floor, today it takes place via the stock app in online trading over the Internet
- The new financial instruments also offer hobby traders and beginners a platform to get into securities trading cheaply
- You can find detailed background information on trading and the like in our heise + article: Electronic stock exchange trading: The technology behind Germany’s largest stock exchange
The term trading describes the short-term buying and selling of securities in trading markets. Ideally, the broker wants to sell cheaply and at high prices and use the financial market fluctuations (volatility) to their own advantage.
Even the ancient Romans leased tariffs and salt pans to early finance companies for years. Over the centuries, stock exchange transactions developed parallel to banking. In 1971 the Nasdaq opened in New York, the first computer-controlled stock exchange. In 1999, the Deutsche Aktien Index (DAX) in Frankfurt switched to calculation using the Xetra electronic trading system. Today’s brokers are no longer on the trading floor; instead, trading only takes place via computers.
At the end of the 1990s, the stock exchanges opened up to online trading. Since then, private investors have been able to trade stocks, options or, more recently, cryptocurrencies as traders from home. Initially, investors only sat in front of their PC, but today they send their orders via the trading app with a smartphone or tablet.
There are various markets around the world in which private traders, depending on their investment strategy, can trade and invest money online. But the investor still needs a broker to trade.
Background information on exchange trading using the example of Xetra can be found in our heise + article: The technology behind Germany’s largest exchange.