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Online Stock Trading – Meaning, Benefits, Procedure & more

Last Updated Date - Mar 16, 2023

In this article, know everything about Online Stock Trading.

Back when everything was on paper, usually the buying and selling of the shares were done using a lot of paperwork. This also meant that a general trader had to depend largely on a broker.

Also, there was always a risk of losing the paperwork. But, now in the current time, everything has taken an online turn. Trading too is not far from the revolution, now you can easily trade from the very comfort of your home.

All you need to do is find an online trading platform, create an account, and start trading with only easy clicks.Stock Market Trading

Benefits of Online Stock Trading

Here are some of the advantages of using online stock trading:

Easy to Trade

One of the biggest reasons why online stock trading is popular among traders these days is because of the ease and convenience that you can experience.

There is no need to go anywhere as you can sit at home or office or anywhere possible and sell and buy shares through the app.

Remove Middlemen

One of the issues faced by most traders is the fact that there is the constant interference of middlemen or brokers in trading. That means you have to pay extra money to these brokers or a percentage share of the investment.

This makes trading less lucrative for many traders who are not trading larger amounts. With online trading, you can trade individually with only a small trading fee paid to the platform, making this a much more profitable venture.

Easy to Monitor

When it comes to trading in the share market, one of the most crucial things is to keep an eye on the stocks, their performance, and their price changes throughout the day.

This allows the traders to take better decisions in the long and short run. With online trading, you can keep track of the share market movement, check the stock performance and even get real-time insight from any device of your choice.

Fast Transactions

Another benefit of using online trading platforms and apps is the fact that there are no middlemen to obstruct or delay the payments. Here the transactions can be completed within seconds or mere hours.

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    How to Trade Online?

    Follow these steps if you are looking to trade online:

    Trading and Demat Account

    The very step in the trading process is to open a Demat account and a trading account. Choose a stockbroker and provide them with the KYC documentation to complete the application for the Demat and trading account.

    Learn And Gain Knowledge

    Next, you will have to study the market, remember stock trading is not something that will make you rich overnight, there is a lot of research and study involved in making the right investment and trading plan.

    You should understand the factors that make the market move and how you can trade for profit as per your requirement.


    Now that you have started researching the market and have created a Demat and trading account now is the time to log in to your account and start trading.

    Use your credentials to log in and add money to your account. This money will be used to buy the stocks and this account will be credited after you sell some of the shares you own.


    Now all you have to do is choose shares, read their historical data, make a decision, and start trading.

    Learn everything about Modern Stock Trading Now!

    How Does It Work?

    Now that you know how to trade online, let’s see how the trading works:

    1. Traders will first initiate the order of buying or selling on their trading or Demat account.
    2. The platform will search for a matching order, and as soon as the order matches, it will be executed.
    3. After the order is executed the trader will get confirmation from the broker.
    4. Then the order is cleared by the clearing company or the platform, as the clearing process gets initiated as soon as the order is executed.
    5. After the clearing process is initiated, the sell or buy trade will be completed within the T+2 days which means within 2 days of completing the buy or sell order.
    6. As soon as the clearing is completed, the Demat account of the trader will get debited or credited with the shares sold or bought.
    7. One can access the digital record of the order as well, for any type of future reference.

    Choosing A Platform

    Here are a few things that one should keep in mind while choosing a platform for online trading:

    User Interface

    Firstly. Look at the platform and decide if they have a good and easy user interface. After all, you do not want a platform or app with a complicated design and user interface that will confuse you while making a trade.

    Market Features

    One of the major things that a mobile app needs to take care of is the variety in terms of market opportunities. When it comes to trading there are multiple types of stocks and instruments.

    Always make sure that the platform provides different market instruments for easy trading.

    Brokerage Fees

    When you trade less often, brokerage fees may not be the biggest issue you face. But, if you are a frequent trader and tend to keep an eye on the market all the time to sell and buy stocks, then brokerage fees can be a crucial thing to keep in mind.

    High fees can make constant trading an expensive affair. Therefore, choose a platform with fair pricing that will not become a problem while trading.

    Speed and Security

    Lastly, you should pay attention to the speed and security of the platform, after all, nobody wants their app or site to crash while making a transaction.

    Check their upload timing and their overall speed before making an account. Also, check the security and safety measures the platform takes to make sure your personal and financial details will be safe.


    Online trading is perfect in the current age and time. It is easy and fast and you will not have to go to any stock market in person. Simply choose the right platform, create an account, and start trading from any place you want.

    Open a Free Demat Account & Start Trading Now!

      Fill Your Details Here

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