5 Reasons Why Stockbroking is Still Valid in 2016
In recent years, we have witnessed a pronounced trend toward more liquid trading positions such as binary options and Forex pairs. While there is no doubt that these ventures can and will prove rewarding, it is undeniable fact that classic stockbroking still enjoys a sizeable presence in 2016. Regardless of market conditions, profits could very well be just around the corner. Should you be looking to venture into this lucrative industry, it is a good idea to appreciate its benefits. Let us briefly examine five of the main reasons why stockbroking in 2016 is here to stay.
The Electronic Edge
Unlike in the past, traders are no longer forced to endure the rather lengthy processes associated with traditional brokerage firms and similar middlemen. Not only could such stumbling blocks be frustratingly slow, but anything less than split-second reactions may have been quite costly. Thanks to the presence of virtual trading platforms, such situations are no longer a concern.
Amenable Brokerage Rates
Low trading rates and fees are two other important metrics to mention. In-house brokers were known to accrue sizeable commissions simply for enacting a position for their client. This could obviously eat into any accrued profits. Thanks to the rock-bottom brokerage rates offered by reputable firms, traders will be able to calculate the exact levels of profit that they can expect to enjoy.
Any investor is aware of how important it is to stay ahead of all of the most relevant economic news. Modern technology in 2016 has made this easier than ever before. Centralised trading platforms offer live information feeds. Traders can capitalise on sudden market movements as soon as they occur. So, enjoying a winning edge is now a reality. This is particularly important for stockbrokers, as sudden press releases could cause a specific share to experience a pronounced change in value.
The “Good” Type of Volatility
It is quite ironic how the term “volatility” has received such a bad connotation with the marketplace. Without market movements, profits would never be realised. Those who are astute stockbrokers can take advantage of the volatility that has already been witnessed in 2016. While others may shy away, it is an undeniable fact that astute traders could enjoy impressive profits throughout the remainder of the year.
The Long-Term Appeal
It is always prudent to invest for future needs. Stockbroking is one of the most common ways to address this requirement. Blue-chip companies such as Apple, Microsoft, Facebook and Coca-Cola all represent excellent long-term strategies. These can provide valuable levels of income towards a pension plan while these holdings can just as easily be passed on to a child or a grandchild. Although the majority of news stories centre around the short-term movements of a specific asset, it is just as relevant to appreciate the long-term advantages of becoming involved within the stockbroking industry.
Those who feel that stockbroking is outdated in any way need to consider their position in greater detail. Modern technology combined with a truly global marketplace have both opened up this sector to investors from around the world.