In this article we will discuss about Online Trading, Benefits of Online Trading, Difference between Demat Account & Trading Account & importance of online trading.
How to Trade via Online Trading?
Speaking about share trading in general, stockbrokers used to be the usual people who used to deal with stocks and shares on behalf of their clients. However with the advent of technology and the world moving towards digitalization with people learning to use the internet, investors can now deal with their stocks and shares via Online Share Trading.
With the use of internet the investors have the luxury to keep track of the movement of their tradable assets or securities in real time via Online Trading Sites or Online Trading Account. For more profitable trading, online trading provides a huge mass of knowledge to the investors.
Open Trading Account with your Favorite Broker
Steps to Start Online Trading:
- Firstly the investor needs to select a proper Trading Account Online.
- Secondly, they need to educate themselves about how to use this platform to their advantage.
- Thirdly before getting into the real deal, an investor needs to practice on an online Simulator.
- The investors should always follow the low-risk form of trading which would give high rewards.
- Planning is another vital factor before starting online trading.
- Investors should always diversify their Stockholdings, and the investors should look forward to always making long-term
These are few of the basic things which need to be kept in mind before an investor decides to deal online.
Difference between Demat Account and Trading Account
At first glance, if an investor were to look into a Demat Account and Trading Account they would find that these two accounts are very closely interlinked, but they do have different purposes. Few of the differences between these two accounts are as follows
Demat Account is a Stock while Trading Account is A Flow:
Trading Account, unlike demat account, is a flow which means it captures the transactions which take place in the capital market over a span of time. Demat Account, on the other hand, is only the holding of the investor’s shares and securities at a point of time.
Demat is measured at a point of time, trading over a period:
As stated above demat is measured is a certain point of time while on the other hand trading is measured over a gap or period. Demat account, for instance, is measured at a point of time like 31st March of every financial year. Trading Account, on the other hand, is spaced over a period like one month which can extend even to a year.
These are few of the major differences between holding a Demat Account and a Trading Account. Investors need to plan out before dealing with these Accounts.
NRI Trading Account in India
The Non- Resident Indians are also allowed to purchase various shares and convertible debentures of any domestic organization through the help of stock exchange. This means that the Non -Resident Indians are also allowed to deal with stocks and shares of a domestic organization with the help of stock market.
Certain points to be remembered before about holding an NRI Trading Account in India are as follows
- Before opening this account, a person needs to know what an NRI Account is.
- Secondly, what are the different types of NRI Accounts?
- Investors should know about the application form and all the necessary documentation required.
These are few of the points to be kept in mind before opening an NRI Trading Account.
Why Do You Need To Start Trading Online?
There are various advantages involved while starting online trading. Investors benefit a lot through online trading. Some of the major benefits are
- It eliminates the middleman: Online trading helps in eliminating the middleman like for example the stockbrokers who would share a cut in the profits.
- It also leads to lower costs. Since the middleman who is the brokers are eliminated their expenses nil which leads to savings for the investors.
- Flexibility: Online trading helps in bringing flexibility instead of the conventional form of trading. Investors can deal with their securities and shares according to their convenience.
These are few of the various reasons why an investor should consider online trading. It is much more convenient, less time consuming and cost-effective.
Open Trading Account with your Favorite Broker
List of all Full-Service Brokers in India –
Angel Broking , Motilal Oswal , Kotak Securities , HDFC Securities , Sharekhan , India Infoline / IIFL , ICICI Direct , Edelweiss , Karvy , SBI Cap Securities , Geogit BNP Paribas , Anand Rathi , Religare Securities , Indiabulls Ventures , Just Trade , Ventura Securities , Marwadi Group , Aditya Birla Money , Axis Direct , SMC Global , GEPL Capital , IDBI Direct , GCL Securities , Arihant Capital , Mangal Keshav , MasterTrust , Networth Direct , Reliance Securities , Sushil Finance , LSE Securities
List of all Discount Brokers in India –
Zerodha , 5Paisa , Upstox / RKSV , Samco , SAS Online , Wisdom Capital , Trade Smart Online , Tradejini , Beeline Broking , Compositedge , RK Global , Achiievers Equities , Bonanza Portfolio , MDirect , TradingBells , EzWealth , Fyers , Fortune Trading , Prostocks , Tradeplus Online , Finvasia , Zeroshulk , Alice Blue Online
List of Stock Broking Franchise in India –
Angel Broking Franchise , Kotak Securities Franchise , ICICI Direct Franchise , Sharekhan Franchise , Motilal Oswal Franchise , IIFL Franchise / India Infoline Franchise , SMC Franchise , Nirmal Bang Franchise , Sushil Finance Franchise , Profitmart Franchise , IDBI Direct Franchise , Ventura Securities Franchise , Sykes & Ray Franchise , Ski Capital Franchise , Geojit Franchise , Edelweiss Franchise , Arihant Capital Franchise , Fyers Franchise , Narnolia Franchise , Anand Rathi Franchise , Choice Broking Franchise , Elite Wealth Franchise , Just Trade Franchise , Karvy Franchise , Swastika Investment Franchise , Prabhudas Lilladher Franchise , IFCI Franchise , Religare Securities Franchise
Important Blog Posts –
Top 10 Stock Brokers in India , Best Stock Broker in India , Top 10 Intraday Trading Brokers in India , Top 10 Sub Broker Partner in India , Full Service Broker vs Discount Broker in India , 10 Best Practices of Share Market Investment , Mutual Fund vs Real Estate Investment , Top 10 Full Service Brokers in India , Top 10 Discount Brokers in India , Best Demat Account in India