If you want to trade online then you need to approach an online broker. You will have to open an online demat and trading account with the broker to trade online. There are full service broker ad discount brokers. Discount brokers charge less fees but do not offer investment advice. Full service brokers offer good service.
Online trading is done by using internet based trading platform. Once you have your online account you can do online share trading. The shares are stored in the demat account and the trading account can be used for trading. When you buy shares you have to tell your broker and the shares you buy will be credited to your demat account. When you want to sell shares you have to give a delivery instruction note to your broker with all the details. The shares will get debited to your demat account and the money will be credited to your account. Online broker You can trade online if you have computer knowledge and the ability to invest in the market. You can approach a online broker if you do not want to trade on your own. Start with a full service broker if you are new to the trading. As you gain knowledge you can trade by yourself. The online share trading sites should load fast any time of the day. You should find as much as you can about your broker. Just because the charges are low does not mean good service. When you open an online account check the minimum deposit required. The minimum amount may be high for you. Many brokers offer online tool which help in you in trading. Tools like charts are available online. You can get live quotes, accurate market information, news and news analysis online form your online broker. The customer service offered should be good. You can trade anytime and anywhere if you have a good online broker. The best stock trading sites offer tools to help investors research to help them to trade. Some also provide news and financial statements of companies, news with market commentary so that you can update yourself with the latest happenings in the market. Cost of online trading Different brokers have different schemes for opening an online account. Some brokers charge account opening fees while some don't. Every broker charges different fees for transactions. For good service the charges will be higher otherwise the price will be low. There is account maintenance fees which is charged yearly.
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If you have physical shares certificates and want to transfer them for online trading then you can do so by opening a demat account. A demat account is used to store the shares electronically. To trade online you need to open a demat account and a trading account. The demat account is used to store the shares and the trading account is used for trading online. You can open a 2-in-1 demat and trading account at any depository participant.
To open a demat and trading account you need to do the following
CDSL and NSDL are the two depositories in India. The list of depository participant for demat account opening is available online on the two websites. Why to trade online The many benefits of trading online are
How to convert the physical shares to demat You can convert the physical shares to demat only if they are in your name. You have to submit the shares to the DP. The DP will check the certificates and update your demat account. The physical shares after being transferred online are defaced. How to choose a depository participant If you choose a bank as a depository participant then you get quick processing, easy accessibility and convenience. The banks have a number of branches and some banks allow you to access the demat account from any branch. Some banks also offer online access to the demat account. The other depository participant for demat account opening process are brokers and financial firms. |
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September 2017
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