With the advent of online trading, many think that banking is an old-fashioned way to invest. It’s not really, it depends a lot on the institution you choose
Banks were born many years ago, already at the time of the first Mesopotamian civilizations. In ancient times, financial activities often took place near temples, where possible deposit or borrow money. The name bank derives from the wooden bench where these activities used to take place in ancient times. These institutions have evolved together with our economy to the present day to face a major enemy: online trading.
Investing with banks or online trading?
Until recently, investing was a banking activity for ordinary people. It was not possible to access the financial markets in any other way indeed. This sort of monopoly often became unfavorable for the consumer who could be conditioned or even cheated as it happened. Of course, there was always the possibility of choosing, going in search of the best banks for investing. But in any case one had to go through an intermediary, a very powerful intermediary given the limited availability of alternative services.
However, the arrival of online trading has changed everything. People today can invest their money comfortably seated in their armchairwithout the need for intermediaries of any kind. Simple, fast and much less expensive, online trading has captured the attention of many consumers, so much so that some applications such as eToro have managed to exceed 20 million active users.
But what’s the difference with a bank? The biggest difference is that with online trading we are alone. We have to develop our strategies and we don’t have no consultant to help us. Of course, in this way the management costs are very low, but the risks are also higher.
Why choose?
Under the competitive drive of online trading platforms, many banks have started an innovation process which led to the development of modern home banking systems. Today many banks offer all the services they used to offer at the counter, but via our smartphone and at more convenient costs. So we will be able to monitor and manage our investments from the comfort of home, while still having a consultant available who can help and advise us if necessary. Here then some banks have turned into something hybrid and perhaps more functional for consumers.
In any case, whether you choose the bank or online trading, it matters good financial education. Portals like www.bassilo.it can give us lots of useful information to develop our skills and stay up to date. That’s all from the web and social section, keep following us!