A Brief History Of Internet Stock Trading

Internet stock trading does not have an overly extensive history as normally you would need to place an order with a stock broker and then that broker would obtain or sell the desired stock. All internet services were first tailored specifically to the finance industry and not the customer or individual that wanted to invest themselves.

 

The very first services for internet trading were created in 1979 by CompuServe. Businesses only used these services because the public was not yet using the internet as they do presently. Eventually internet trading services have developed to be used by the public and these services progressed as technology improved and internet usage soared.

 

The very first online stock trade was made in 1983 by a dentist using the services from the company Trade*Plus which eventually became the E-Trade Group located in Silicon Valley. During the 1980s many other companies became online brokers such as First Omaha Securities, Inc which is now known as AmeriTrade.

 

However these early internet trades still required a stock broker. It was not until 1996 that you could trade online yourself without needing a stock broker using eBroker. Soon large brokerage houses such as Schwab developed as did other online discount brokerage houses that offer their services 24 hours a day for online trading.

 

Online trading had much lower costs then previously and in the 1990s almost anyone could make money trading in the stock market. Today most individuals use online stock services to invest their money and these online services offer options so that you can make the trade yourself, have a broker make the trade all through the internet.

 

When compared to the history of the stock market which was developed during the second half of the 1800s and investing was common long before this, internet trading is still young so there is still plenty of room for improvement and new applications for online trading.

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