being more established, there are also positive trends that bode well for electronic investing in future such as the maturing of an entirely new generation of young investors who are more aggressive, more computer savvy, and more informed than their older counterparts.
Investor fear and ignorance are major reasons why electronic trading is not more established than it is at the present time despite myriad success stories from countless investors who are hooked-in and logged-on to trading online. The industry is in its infant stage which presents a host of difficulties and challenges that must be overcome before potential investors will feel more secure and confident about electronic trading. Presently, a degree of chaos, a lack of standards or uniformity, discrepancies in commission fees, and other differences are hallmarks of the electronic trading industry. Potential investors are wary of investing cash electronically because of security concerns, and they are also nervous regarding scams and phony investment deals. Trading jargon and rhetoric, different types of stocks, commodities, and bonds, complicated financial transactions, tax complications, privacy and security concerns, and a host of other factors are beyond the reach of most lay people. Thus, investing electronically has been held back because even though people want more control over their personal finances, many of them have no idea how to go about investing electronically. Companies like Ameritrade and E*Trade do not make this
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