Blom Egypt Securities Website

11:26 AM Market Open

Online Trading

Stocks Online Trading in Egypt was launched since July 2007 to meet a strong demand in the market, with the internet invading our lives and pushing us to do almost everything virtually. Market Information, live stock quotes, Researches, recommendations, and much more are all available online, and You can now carry out all your Buy/Sell transactions in the Egyptian stock market through a licensed stock broker.

Advantages of Online Trading

  • Lower commission rates

  • Throwing out brokers’ preference for only large portfolios

  • Empowering investors with full control over their portfolios, and enabling them to watch the trade execution details and to track their portfolios online.

  • Providing Investors with Real-time market information, what would increase the tempo of their reactions to market and prices’ changes and accordingly suggest higher returns.

However, analysts pointed out that online trading could be associated with some risks such as Encouraging active day trading, leading the overall market to be more vulnerable to volatility and Speculative deals.

Therefore, online investors should be aware of the following:

  • Although online trades can be executed in few seconds, investors and traders must take their Time to make wise investment decisions.

  • Online trading requires high concentration as some investors place their orders more than once mistakenly assuming that the orders have not been executed, hence ending up either owning more than the amount demanded or with selling stocks they don’t own.

  • In fast moving markets, delays may occur due to the rush of orders placed on the market at the same time, combined with quick price changes, online traders might end up with transactions executed at different prices than wanted. Some investors protect themselves by placing Limit orders rather than Market orders, where a limit order is an order to buy or sell a security at a specific Price, so a buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher.

  • Online traders should determine if the stock quotes and account updates received are real-time or delayed data.

  • Technological obstacles (e.g. internet provider delays, computer or modem problems, .. etc) must be taken into consideration.

  • Online traders should verify the registration status and disciplinary history of the online broker they chose to deal with.

Source:EGX & PC
Date:08/09/2008 22:37:53