In the real estate industry there are two important exchanges and trading venues that are considered essential for real estate investment. The first of these is the open outcry market or OTM. This is where all transactions are done electronically and not through physical closings like with share sales and traditional business exchanges. Another important exchange is the Over the Counter (OTC) market. This is a private market where all transactions are made without involving banks or other financial institutions. Both of these important exchanges are found in New York, Chicago, Los Angeles, San Francisco, and Miami.
Financial institutions and trading platforms are what link buyers and sellers in the OTM and OTC markets. Buyers can either visit the online trading centers from their homes or offices or they can go to an OTC brokerage where they will have to face no problems at all since they will have a broker with them. The seller will be responsible for preparing all the necessary documents needed for trading. The brokers do all the technical work involved with the trade including accessing information from internal systems and from the outside world. The linkages in the OTM and OTC markets allow for numerous trading hours in every day.
There are many other types of real estate exchanges besides the two mentioned here. There are cyber exchanges which operate exactly like the OTM and OTC markets but through the Internet. They are usually faster than the former two, and they are accessible through any computer with an Internet connection. The biggest advantage of cyber exchanges and trading platforms is that the buyers and sellers can meet virtually anytime and anywhere in the world.
There are still many other kinds of real estate exchanges and trading platforms but these two are the most common ones. There are other types of exchanges that allow for the direct linking of buyers and sellers but they are less common compared to the two listed above. For instance there is a “Gather-and-Retrieve” exchange which links sellers and buyers in a specific region or country. Another example is a “Social Networking” or “Party Buy” link where parties actually meet online and make a purchase without ever meeting in person. These types of linkages are only found in informal financial institutions and online marketplaces such as Facebook and Craigslist.
There are also other types of online trading platforms such as blockfi, eHarmony, and even a few others which can be accessed through the Internet. One of these is the bank-to-bank linkages. These are actually not banks per se but have the same type of look-alike bank accounts that users can view their transactions in and view what their bonuses are. These are linked directly to an account provided by the lending bank and require a certain amount of money up front, usually around $500.
Another type of online broker is one that does not require any type of bank account or other deposits to trade. This type of broker is called a “Exchange Trade Platform”. The exchanges usually list the prices of both buyers and sellers, but no deposited funds are necessary for the successful execution of an exchange trade. This is the cheapest form of trading platforms, but it’s important to keep in mind that the largest US banks will most likely not allow deposited funds to be traded on their exchange platforms.