Internet share dealing has overtaken traditional methods such as telephone or face-to-face trading, according to market analysts Datamonitor.
Internet share trading costs less, Datamonitor says
Just over half of all share trades took place over the internet in 2005, compared with about a quarter in 2001.
Internet share trading appeals because it is cheap and time efficient, the analyst group said.
A £1,000 internet share trade costs on average 40% less than one carried out over the telephone, the group added.
"The advantages of online stockbroking are obvious," said Ingo Nachbaur, financial services analyst at Datamonitor.
"There is no more waiting in telephone queues, immediate access to one's portfolio is given and trades can be executed at the click of a button."
The group also noted a marked increase in the popularity of financial spread betting.
It estimated that there were 100,000 financial spread bets in 2005, a 25% increase on the previous year.
Traders are attracted by spread betting because there is no stamp duty to pay, the group said