Question

Give any four limitations of E-Trading.

Hint:

E-Trading requires a stable internet connection and digital literacy to be effective.

Answer 1

1. Technical Issues: System failures, internet outages, or software glitches can prevent timely execution of trades, leading to financial loss.
2. Security Risks: Online trading accounts are targets for hackers, identity theft, and unauthorized access.
3. Lack of Personal Interaction: Investors miss out on the personal advice and guidance provided by traditional brokers.
4. Addiction Risk: The ease of access and gamification of trading apps can lead to compulsive trading behavior.