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Online Trading Platforms. A Situation Analysis Of 2016

Author

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  • Ioana Ancuta Iancu

    (Universitatea Tehnica din Cluj-Napoca)

Abstract

Competitiveness between financial investment services companies manifests on all levels, including the distribution channels. Therefore, the investment companies are looking for cheaper and easier alternatives for investors to trade. So, online trading platforms have been developed to offer investors the opportunity to make their own transactions without the help of a stockbroker. Online trading platforms offer multiple benefits to users, such as reduced fees, portfolio in real time, transfers of cash or shares in/out to/from their accounts, access to multiple markets (SSIF Broker and Tradeville are offering to their clients access to over 100 exchanges markets), fast transactions, transparency of transactions, access to technical and fundamental analysis, news alerts etc. Assuming that in Romania the number of experienced retail investors is growing and they don’t need consultancy in trading, our aim is to discover the strengths and the weaknesses of online trading platforms. We analysed the online trading platforms of 20 Romanian financial investment services companies (SSIF). In essence, on each SSIF Web page and/or online platform we have sought information about: content, minimum amount required to open the account (cost), time (period of time in which the order appear in the system used by Bucharest Stock Exchange - Arena) and the level of platform interactivity. Please note that where the information was not found, its absence was noted. This doesn’t necessarily mean that the SSIF doesn’t have this element, but it means that we didn’t find any information. We found that time criterion was the winner element, and most of the companies described it well. The most neglected element of the platform is interactivity with visitor/ investors (non-stop assistance, alerts, etc.).

Suggested Citation

  • Ioana Ancuta Iancu, 2017. "Online Trading Platforms. A Situation Analysis Of 2016," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 789-795, July.
    • Handle: RePEc:ora:journl:v:1:y:2017:i:1:p:789-795
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    References listed on IDEAS

    as
    1. Oh, Natalie Y. & Parwada, Jerry T. & Walter, Terry S., 2008. "Investors' trading behavior and performance: Online versus non-online equity trading in Korea," Pacific-Basin Finance Journal, Elsevier, vol. 16(1-2), pages 26-43, January.
    2. Choi, James J. & Laibson, David & Metrick, Andrew, 2002. "How does the Internet affect trading? Evidence from investor behavior in 401(k) plans," Journal of Financial Economics, Elsevier, vol. 64(3), pages 397-421, June.
    3. Brad M. Barber & Terrance Odean, 2000. "Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors," Journal of Finance, American Finance Association, vol. 55(2), pages 773-806, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    online trading platforms; retail investors; stock market; financial investment services companies (SSIF);
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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