An online brokerage platform is an online trading system that provides the means to buy, sell and settle stock transactions. Online brokerage firm aims to provide modern electronic technology for investors who want to trade stocks or other assets online in order to connect individual buyers and sellers of financial instruments via a price-matching engine. Some online brokerage companies also offer additional services such as online trading platforms, research services, and financial planning tools.
A few years back, there were three major models for online brokerage: client-server model in which the customer interacts with the brokerage using proprietary software installed locally on their own computer; web browser-based trading platform where all transactions are done through a website via a web browser; and hybrid model which combines both models.
Key factors that influence customer satisfaction when using an Online Broker include order execution quality (includes speed of trades being filled), the accuracy of their quotes, accessibility from the Internet or mobile devices, flexibility to trade different assets classes including stocks, bonds, options etc., availability of additional helpful tools such as trading charting capabilities and features to manage one’s portfolio (e.g., for intraday and/or longer-term investing).
One of the biggest advantages of online brokers over traditional stock brokerage is a vast range of assets that can be traded, as online brokers are not restricted to dealing in only one type of asset. This can also be a disadvantage as there are some securities that cannot be traded online due to technological limitations or lack of demand from investors. Online trading firms often use automated pricing models for stocks, ETFs, options and futures based on market data while more ‘traditional’ financial advisory companies may have their own traders responsible for setting prices in accordance with economic factors such as business news. Some institutions will allow their clients to trade using an account accessible through a web browser where all trades are executed via servers located at the institutions.
A disadvantage that is not shared by most brokers of this type is the inability to deal in certain investment vehicles such as individual stocks or closed-end funds (CEFs). Because its business model depends on developing a significant number of clients, individual investors sometimes find that there are advantages to using an online broker over a traditional full-service brokerage firm. For example, many online trading platforms provide extensive market research with up-to-date financial news and quotes, allowing investors to make informed decisions about their investments more efficiently than in person at a traditional stock broker’s office. This can be especially important for people who live outside major metropolitan areas where the nearest large brokerage house may only offer limited hours of operation; some services have 24-hour telephone support and are accessible from all time zones.
I have been trading myself for the last 3 decades and I know a lot about different brokers. With all the knowledge and awareness, I decided to stick to London Gates and through this review, I will try to explain some of the many reasons behind my choice. So, let’s start and see what qualities and flaws London Gates has.
An Overview
The online brokerages, London Gates, offers electronic trading services for stocks, commodities, indices and much more. It allows customers to execute trades via the Internet through a website that is operational on many devices. Some brokers provide their users with mobile apps which can be used by traders to make trades while travelling or in situations where internet access is not available but unfortunately, we do not have an app introduced by London Gates as of yet.
Website
But the website has a superior interface and it works equally well on all laptops, PCs, tabs, etc. It allows clients to trade from the comfort of their houses without having to make long and exhausting trips to stock exchanges and offices. The custom charting tools developed by well trained, experienced and skilled software engineers help the young and elderly traders a lot. We use charts provided by the company to get a clear idea about the ever-changing market situation and then make appropriate decisions.
Tools
I noticed that this forex company, London Gates, offers tools to help traders keep track of their investments, including real-time quotes. Not only this, but they also provide advanced trading tools for investors that cannot be used in traditional brokerage firms, for example, the ability to trade forex and CFDs on currency pairs, indices and commodities without owning trading accounts at a bank or brokerage firm dealing in foreign exchange (FX).
Some companies have a specific platform for tracking personal finance which incorporates online banking with their financial insights services – these include building budget templates, investment analysis and retirement planning features. This company is taking the lead when it comes to investment analysis because along with the tools, they give you an expert financial manager who keeps advising and guiding but the firm might want to add up the other things.
Another trend is offering financial news content through live TV channels like Business News Network, Bloomberg Television etc. Live streaming video technology is not a common spec for most online brokerage firms but this can be a great addition to the website. We know that most traders these days do not prefer reading and this is why they need to be provided with something that keeps them updated. Video lectures can be added if blog sections or TV streaming is not cost-effective or something easy to adopt.
Financial Advisor
Because the online brokerage platform, or online trading platform, is a computer-based tool that provides operators and customers with an electronic communication link for the purpose of buying and selling financial instruments, it can be trusted but not entirely. It allows market participants to enter orders (bids and offers) and manage their portfolios and they also give traders real-time access to markets as well as continuous monitoring of price fluctuations in all traded assets but you cannot rely on them all the time. This is because there have been numerous reports that even the well-reputed brokers provided values that were poles apart from the original ones.
The computer-generated data works on previous trends and software that are not influenced by the prevalent volatility. This is why you are recommended to listen to financial advisors. Not all firms offer financial advisors and this can be a huge drawback but I am happy that this isn’t the case at London Gates. These experts are very well trained and they keep an eye on all that is going around. This is why you can consider what they think. However, you do not get a finance manager unless you get a higher account. I think this is another area that the firm needs to work on. Young traders need financial advice the most because they have not been through the process yet.
I understand how this means an expensive account for them but in my opinion, it would be worth it. Or maybe they can add an option for young ones and they can go for one if their budget allows them.
Affordability
Another feature that I like about London Gates is that it is able to offer substantial savings on trades because of its low overhead costs when compared with traditional brick and mortar brokerage houses. Apart from that, this company does not have a lot of branch offices, high-maintenance storefronts or other local expenses associated with traditional brokerage services; thus this broker can pass along these savings directly to customers—in addition to offering lower commission rates than full-service brokers.
Paper Accounts
This reminds me of a small flaw. Many companies allow customers to trade with paper accounts before they open an actual account, and this allows a potential client to learn the basics of how trading works without risking their own money. This is a great idea to save the young lot from going back home disappointed and this is why I would urge the company to add this option soon because I know that London Gates is a player of a long game and they realize the importance of making the future generation better traders.
Webinars
Another feature that this brokerage offers is access to webinars or seminars; these can range from live events hosted by professional traders that tackle a variety of financial topics to pre-recorded videos on technical analysis or basic forex trading strategies. Some larger firms may also have entire websites dedicated to investing educational material, which incorporates numerous articles about investment education. Many brokers have blogs where staff writers write about current economic conditions and the stock market in general. Traders usually find it helpful.
I have been trading with London Gates for a long time now. The company has a lot to offer but it has some areas that can be improved to improve the experience. You can definitely consider it for a longer partnership.
Disclaimer: This review is written from my own experience and my self-knowledge only and this is not a recommendation.