Many online traders choose to focus solely on technology companies, as the tech industry is among the most dynamic investment sectors in the world.
The first stop for most tech traders is the NASDAQ. The NASDAQ consists of leading software developers, online service providers, media outlets, consumer electronics companies, and healthcare firms, all in one massive index, making it the world’s second-largest exchange by market capitalisation, following the New York Stock Exchange. The NASDAQ100 list, however, is made up of only the largest companies, primarily from the technology sector.
NASDAQ stands for “National Association of Securities Dealers Automated Quotation”. Founded in 1971, the NASDAQ is now the largest securities market in the United States, and was the first index to be completely controlled and displayed electronically. Until then, investors, traders, and international brokers used to rely on telephone calls or face-to-face meetings to execute trading positions. However, many brokers were initially resistant to this trading revolution, since they were no longer able to make as much money on the spreads. Nevertheless, for an increasingly connected world there was no looking back.
Investing in Tech Titans
The technology sector has grown exponentially over the past few decades, and now represents a cornerstone of American and global economies. Companies like Microsoft and Apple, NASDAQ pioneers who literally jumpstarted the computer age, have become international household names. Trading shares of newer companies, like Google and Facebook, is also extremely popular. Some notional groups of related stocks even have their own names, like the “FANG” companies: Facebook, Apple, Netflix, and Google.
The Advantages of Online Trading
These days, many top international brokers offer services exclusively through online trading platforms, saving on costs and passing on the benefits to traders, usually in the form of lower spreads.
UFX is a favourite among many investors because of its user-friendly interface, extensive educational resources, very competitive spreads, and its wealth of bonus features. It offers traders a wide variety of NASDAQ CFDs to invest in, as well as access to many other major indices.