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With fiat stock exchanges, making trading applications such as automated bots were largely out of reach for ordinary investors due to the restrictions in data access.

With fiat stock exchanges, making trading applications such as automated bots were largely out of reach for ordinary investors due to the restrictions in data access, contributing to an illusion that "High Frequency Trading" was an unattainable mystical trade reserved for the mystical quantitative programmers in secretive hedge funds.

Advantages of BTC stock exchanges  1) Speed of deposits and withdrawals

On a decentralized exchange (using mastercoin protocol, counterparty, or colored coins), one does not need to "deposit" bitcoin at all, but the sacrifice being the stock trades themselves are at the mercy of the confirmation speed, so many kinds of trading (time sensitive under 30 minutes) are not practical, but investing and swing trading is. Colored Coin protocol does not have this sacrifice. On decentralized exchanges AML is impossible barring some future invention that attempts to make some bitcoin tainted to the entire network.

But Wire/SWIFT transfers obviously aren't much better.

Advantages of BTC stock exchanges 

1) Speed of deposits and withdrawals

But Wire/SWIFT transfers obviously aren't much better, due to the cash settlement time before the transfer happens.

On a decentralized exchange (using mastercoin protocol, counterparty, or colored coins), one does not need to "deposit" bitcoin at all, but the sacrifice being the stock trades themselves are at the mercy of the confirmation speed, so many kinds of trading (time sensitive under 30 minutes) are not practical, but investing and swing trading is. Colored Coin protocol does not have this sacrifice. On decentralized exchanges AML is impossible barring some future invention that attempts to make some bitcoin tainted to the entire network.

Advantage of fiat stock exchanges

1) Margin, lots and lots of margin.

2) SIPC insurance, for stocks.

9) 24/7 market hours

Bitcoin stock exchanges never close. Trade any asset any hour of the day. There are no gap ups and gap downs due to information coming out while markets were closed.

This is an advantage because information can become available at any time for a security in any part of the world.

In centralized exchanges, implementing "closed" hours is difficult (but a future exchange may opt to do this), and in decentralized exchanges this is impossible barring some future protocol change.

Advantage of fiat stock exchanges

1) Margin, lots and lots of margin. bitcoin currently does not have a practical way to offer margin for stocks.

2) SIPC insurance, for stocks. If the exchange shuts down many regulatory environments have a way for depositors to get their money back up to a point.