The widespread popularity of online trading among all types of traders has given rise to various brokerage firms. Today traders can trade almost all financial instruments from the comfort of their home, including stocks, bonds, commodity futures, options, funds, currencies, and much more, online.
Online trading in South Africa offers very fast order execution for low fees and provides many trading tools that were once available only to institutional and large-scale traders. There are many different types of classifications of online trading brokers, here are some important ones.
One of the most popular is the assortment of by-products. Here the brokers are classified according to the access to the products they are providing. they include
Stock Trading Brokerage Firms – Brokers whose main service is to trade equities. Most of the brokers you have heard of are mainly stockbrokers.
Forex Trading Brokerage Firms – These are brokers that provide traders with access to the world's largest financial market, the Forex currency trading market. Forex brokers differ from others in that they do not charge any direct commission, instead, they profit from the spread between the ask and bid price for a currency pair.
Online Full-Service Brokers – These are the traditional brokerage firms that started offering online trading services. They allow traders to trade a large variety of products and markets; Offer more order types, and have lots of trading services. In return, they often charge high fees but they are well versed in market movements and are very good at customer support.
Day Trading Brokers – also known as Direct Access Brokers, provide traders with real-time access to the markets. The products and markets may be limited but they offer some of the most powerful trading systems that help active trading immensely.
To find the broker that best suits one, one must consider several factors including trading style, product/market, profit target, risk-tolerance, commission payable, order type, account specification, past performance, reach, platform, and Many are included. more.