We can trace the birth of online trading back to the advent of the internet. Before then, everyone who traded placed order through a broker who influenced their purchase decisions. Only a limited number of companies, those with the largest business, had access to the web before 1979.
Today, however, investments are made by individuals through the internet as online trading continues to be one of society’s most popular ventures.
Online trading started in the ‘90s with the advent of the internet. Online trading opened a door to a room full of opportunity because traders no longer had to physically call in their transactions.
Traders were able to place their transactions without relying on a broker. Online brokerage firms became the new way to conduct business. CompuServe came on the scene in 1969 as the first major online service company and by the mid-‘80s, it was considered a giant in its field.
The world’s first electronic stock market was NASDAQ, in 1971.
The great revolution came, however, in 1992, when the CME Group’s electronic trading platform launched Globex.
The Chicago Mercantile Exchange was one of the first exchanges to use electronic order routing through its Globex trading platform.
Online stock trading has developed tremendously since its inception in 1994. Today practically anyone can invest with a reputable company.
In 1999 the domain name ugtz.com was implemented in an independent database. It was Game Trading Zone, the earliest trading sites on the internet (with exception of eBay). The database helped traders by showing them a list of potential trading matches and historical transactions as well.
The tools you need to trade are a computer with internet access and a telephone. The remaining tools are services specific to trading, such as a direct access brokerage, and real time market data, and these services are also available via the Internet.
In the ‘70s-‘80s, if one wanted to buy shares of a company, he would call his broker telling him how many shares he wanted to buy, the broker then calls a runner in the NYSE who passes the order to a floor trader to buy shares of that company on your behalf in the company pit.
Now orders are processed electronically through a network with nearly zero human intervention. The orders will be routed to a trading server, matched to a counterparty and the confirmation will be in your email within few seconds at minimal cost.
This has created many more efficient markets as more traders are able to interact with each other all around the world 24 hours a day.
Now, the question is: what are the top countries for trading? Considering tax efficiency/lowest capital-gains tax only, it seems that U.S is the first choice among investors.
The reason might be the good performances of US stock markets in the last two years, while BRIC nations have performed very poorly.
Since that most of the European countries is still sunk in the crisis, this does not encourage investments, even if the main capital cities are still cornerstones for trading.
It always remains the off-shore tax countries: Bahamas, Barbados, Caymen Islands, Isle of Man, Lichtenstein, and Turks and Caicos. Among others, Argentina, Egypt, Hong Kong, Jamaica, Singapore, Switzerland, Turkey, and the UAE have no capital gains tax.
As we have seen, there are a lot of countries to choose from, you just have to think to your needs. After all, there is plenty of choice.