In the recent times, Online Trading has caught the fancy of numerous people in India and is continuing to do so.
Now a day’s online trading has become as simple as shopping online. One can do it from anywhere just using a smart phone or laptop. All it needs is a good internet connection, Trading App or website and sufficient funds in their bank account. In present day, when everyone is busy, this proves to be one among the most convenient and feasible ways of conducting trade.
Online trading is becoming popular because in the present day, all the hectic paper work has come down to a single click or touch on the mobile screen. Many free and paid mobile and web applications and portals for trading are available on internet. Online trading helps you buying and selling of securities such as stocks, bonds, and other related financial instruments online on your own without going to the broker everyday physically.
Since mid 90s, India has shifted to dematerialization (conversion of physical shares into electronic form), Now it’s compulsorily to have a DEMAT account to start trading on India’s stock exchanges.
For online trading all you need is to open a DMAT Account and a trading account and you are good to go! A Demat account acts as the common repository to store the purchased units of stocks whereas the trading account acts as the platform to buy and sell the share. A bank account is linked to the trading account to facilitate funding of trade.
However, you need to be cautious when selecting a brokerage Firm to open a DMAT and trading account. Before opening an online trading account, one should give the overall cost efficiency a serious thought. Cost efficiency can be achieved primarily through lowest brokerage for online trading.
There are many brokerage companies today which provide lowest brokerage plans. One needs to compare all the brokerage firms before opening their account on the basis of some important factors like –
- Provide Zero fee DEMAT account.
- Low brokerage and high exposure.
- Provides good customer support.
- Stock broker should be registered member of all the stock exchanges and is certified by the SEBI.
- Provides User friendly versions of Trading software’s (Desktop, Web and Mobile) for no extra cost.
- Provides security of financial and personal information.
- Provides fast trade execution.