Online Stock Trading - is it for you?

Online trading is the latest buzzword in the Indian Financial Market. To trade online we need a share trading narrative. There are many online trading accounts that are available which can easily be accessed. Any individual having a “demat” account in depository participant can easily use of such facilities. All we need is a PAN card and bank vindication.

The user would be allotted a user id and with the help of that id, the user would be able to access his account accordingly. By virtue of this facility the investor need not call up the commission agent (better known as the broker). Whatever transactions are being entered by him is directly debited or credited through his/her designated bank account(s). Actually, the transactions which are being entered by the investor have to be entered by broker (the bank in this case) towards respective depository.

The importance of online share trading cannot be ignored today where the transactions take place in fractions of milli-seconds. Online share trading gives the investors many benefits, which they are otherwise deprived of. There is absolutely no kind of paperwork involved – this is the most cumbersome and tedious job for offline traders. Live market prices and quotes are available to investors. Hence securities can be traded instantly, from any computer that has an internet connection. Orders can be placed even after the market has closed down. In addition, an investor does not need to be a computer savvy to trade online. The only thing one should know is how to check mails. Nevertheless the margin rates required is comparatively very low.

But at the same time the question which comes across our mind is the safety of transactions. It all depends on 3 major factors summarized as below:-

• Encryption system used
• Secured user id and password
• Integrated online system

No doubt online trading is a boon to investors but at the same time proper care should be taken so that it remains safe and secure. Thus one should take care to follow a well planned strategy to gain profits otherwise one is sure to face pitfalls. This should be based on individual personality and other factors such as money and experience. There are some books and sites that offer a fool-proof system but be cautious about them too.

So far, we have discussed about the benefits and demerits from online share trading. Now it’s important to have a look on sites which provide for such facilities-

• www.icicidirect.com
• www.idbipaisabuilder.in
• www.appuonline.com
• www.kotaksecurities.com
• www.jvfinancials.com
• www.composite.co.in

This is not a comprehensive list. Thus the concerned investors have to choose their desired online trading site according to their convenience.

What’s most striking is pace at which the whole context of Indian financial market has changed. With the advent of online trading, investors have become more secured about their investment and can see their portfolios online. This facility enables the investors to have a proper understanding and thus can plan out their investment accordingly.

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Tags: online trading, online share trading, online stock trading, online forex trading, share trading, forex trading