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The online trading industry is exploding with some 460,000 transactions recorded per day, and 14 percent of all stock trades are executed online. Internet discount brokerages are attacking the market by offering low transaction fees, fast execution of trades, and tons of information at little or no cost. They are also ratcheting up the competition with the big guys of the stock market, by introducing tools online that at one time were only available to the pros. One of these tools, Nasdaq Level II quotes,

gives users a picture of a stock or stocks that shows exactly who is interested in a stock and how much they are willing to pay for it. The savvy investor can use this information to squeeze out some of the costs of investing in the market and to get a better picture of the action surrounding the stocks. Soon, Level II quotes may be as prevalent online as, well, online brokerages are. The online index maintained by Yahoo! lists more than 30 fee-based real-time quote services, and each is a candidate for the service. TulipsandBears also offers a directory for day-traders. What Are They? Gomez Advisors, a market analyst in Concord, Mass., calls Level II quotes the book on a stock. Essentially, Level II quotes improve on the information offered at Level I -- bid and offer prices, the number of market makers willing to buy and sell at those prices, and how much they say they are willing to buy and sell -- all in real time, just like on the screens seen by the institutional investors. You can even see your bid enter the system. Nasdaq charges a fee to view the quote. Still, if they become a popular feature, sites may begin to eat the cost as part of the competitive landscape. Data Broadcasting of Hayward, Calif., on Monday introduced eSignal services, which offers Nasdaq Level II information at prices ranging from $99 to $175 a month with other options including real-time delivery and limit alerts on cell phone or pager. The company, which also provides its service to other companies, has a 30-day free trial subscription available. CyBerXchange, a product of CyBerCorp of Austin, Texas, takes in Level II data and uses its technology to pick a best price for an order, charging $14.95 to $19.95 per trade for customers who execute 50 or more trades a month. The company trades on fast execution, using its software to find best bids and offers and execute the deal. These quotes help an investor see the direction of the market and who is playing. They do not, however, assure profits or reduce risky positions. As with any kind of trading, be aware of your appetite for risk, and trade accordingly. And, if you still aren't comfortable, Sagamore Trading Group and SyeNet of New York offer training in Level II trading.