Online Trading in 2021 – Is It Better Today Than It Was Just a Year Ago?
While online trading is not a new concept, we can definitely say that the past 12 months have been its golden era. This is mainly due to the fact that all around the world, people were locked down at home with no possibility to work but with a need for an income. These virtual trading platforms were an ideal solution, albeit the many risks that come along with them.
But how has trading on the World Wide Web changed in the past year? Is it more profitable, or at least more technologically advanced for the comfort of traders? Is it more dangerous than it used to be? Let’s take a look at some of the changes that this sector has undergone recently.
We’ll start off with some positivity, if we may. Ever since this industry had become trending and popular, competition for the customers’ attention (and money) became intense as well. That means that there are hundreds, if not thousands, of different brokers out there in the virtual sphere, each trying to provide the most optimal conditions for trade – and yes, that also means that it has become cheaper in terms of commissions, spreads and rates.
Variety is another key factor, and some may even say it’s actually the name of the game when trading online. When this industry had started out, back in the early 2000s, traders were pretty much limited to forex and some stocks. Today you can trade online on indices, commodities, bonds, ETFs, and even those cryptocurrencies that have been causing a huge buzz recently.
While the opportunities in the world of online trading seem to have become endless, the limitations have sadly stayed the same. Trading is done a very dynamic and volatile environment, and it wouldn’t be an exaggeration to say that immediacy is a key factor today when buying and selling. It’s a real shame, though, that most traders around the world do not have access to speedy internet – making fast-paced trading almost impossible.
That’s why throughout 2020, when demand for online trading services had been high due to COVID-19, the supply side generally failed to deliver. However, the internet is not the only one to blame here. There’s a downside to the plethora of trading venues online, and it is the fact that a lot of them are just not professional enough.
Now, let’s talk about the elephant in the room here. Online trading had become very popular over the past year, and that in return has also made it an attractive venue for bad people to commit misdeeds. These scammers had been around for a while before the COVID-19 crisis, but people’s need to make fast money online while being stuck at home was a real incentive here.
Don’t be fooled by the graphics, fonts and phrases you see on these trading websites. A lot are no more than a big fraud, and they don’t really have any intention of helping you make a revenue. The bigger problem is that since they work globally, it is very hard to track them down and bring them to justice – let alone retrieve your money. Sure, there are some angels who have dedicated their lives to forex scam recovery, but they are just too few in the face of this phenomenon.
One common example of such a scam, according to victims of online trading frauds, is a website which lures people into dubious investment venues, each time promising tremendous profits. The victims also report receiving tens of phone calls from brokers related to the website on a daily basis, putting a lot of pressure on them to invest more and more money. Needless to say, when the promised venue turns out to be a big flop, the broker disappears into thin air, and good luck trying to reach them on the phone.
What does the future hold?
Sadly, we’re not too optimistic here and our conclusion is that trading online today is less attractive than it was just a year ago, despite the advantages mentioned, which are outweighed by the disadvantages. However, that doesn’t mean that you should stop trading online (or not start at all). It just means you have to be extremely cautious and suspicious. If you don’t keep an eye on your money, nobody else will do it for you. Good luck!