Trading is done in a stock market, between stocks of various companies. Trading was and still is done in stock exchanges on a trading floor. But the advent of online trading has brought trading facilities closer to the trader. A trader now enjoys trading from the comfort of his home or office, without having to worry about being present in the stock exchange during trading hours.
To start trading online, one needs to find an online share broker who plays the role of a physical share broker. The online share brokerage firm should be a credible one, and the trader needs to make sure of it. He should consider the available online share brokers and compare them according to their features and the services they provide. But the most important criteria to select an online share broker should be the brokerage charges being levied on the trader. The broker should be able to provide quality services at low brokerage, which would not eat up his profits. An online share brokerage firm provides the online trading software for the traders and they just have to connect to the internet to access the software and start trading!
The first thing a trader will need to start trading online is a demat account. A demat account holds his securities in a dematerialized or electronic form. This eliminates the need and risks of the physical share certificates, and also makes the trading process much more convenient and secure. A demat account can be opened with any bank or a financial organization. The demat account needs to be linked to his savings account from any bank and his online trading account. These days, banks are offering to provide all the three facilities to an investor. Apart from a savings account, the SEBI requires PAN card and proofs of identity and residence as requirements for opening a demat account or trading account.
Online share brokers provide an online trading software which should be user-friendly and provide the trader with fast and reliable market updates. Some important features to look out for in an online trading software are live share price updates, market news, market research reports, various stock exchange updates, etc. The software should basically provide all the necessary information required by the trader. An online share broker should also be able to provide trading facility on phone in case of internet failure. Advisory services and trading tips would make the software much more attractive to the trader.
There are many online share brokers in India for the investors to choose from. Some of them are ICICIDirect, HDFCSecurities, UniconDirect, ShareKhan, etc. Many of the share brokers have a free demo of their softwares on their websites too. This helps the trader in finding the most suitable online share broker for trading in the Indian share market.
ABOUT THE AUTHOR
Get the full benefits of trading in an online platform with our online stock trading account, and follow our tips for online stock trading in India : http://www.onlinestocktrading9.in/online-stock-trading-india.html
Sunday, August 12, 2018
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