Who are online traders?
Online traders are investors who buy and sell securities over an electronic network, typically with a brokerage business concern. Since late 1990s, they were known with customary behavior via a wide variety of online trading platforms.
Electronic trading platform as a tool for online traders
In finance, online trader use a computer software program to place orders for financial products over a network with a financial intermediary by online traders. This includes products such as stocks, bonds, currencies, commodities and derivatives with a financial intermediary, such as brokers, market makers, Investment banks or stock exchanges.
Risk encountered by online traders
The risk of investment fraud (which is in all investment) can be caused for online traders which can increase for the investor that does not have a personal relationship and the broker may be located in a different jurisdiction. As a result of this, investors have been warned by financial regulators to research the online brokers they plan to employ, assuring that those firms are licensed within their state, provincial or national jurisdiction.