Going Online

GOING ONLINE

Traditionally stock trading was done through stock brokers, personally or through telephones. Busy phone lines, miss communication resulting in confusion and sometimes loss to the investors created lot of practical problems in trading. Information technology has helped stock brokers in solving these problems with Online Stock Trading. Online stock trading sites offer investors access to a variety of tools and research that just a few years ago were only available through full service brokerage accounts. Online stock trading is done through ‘terminal’ installed in your personal computer. This online terminal is provided by the brokerage house .so, you can trade in shares from the comfort of your home.

A good online stock terminal would offer you the following :

  • Fast trade execution with instant trade confirmation.
  • Live streaming quotes and price watch on any number of stocks.
  • Intra day charts, updated live, tick-by-tick.
  • Live margin, position, marked to market profit & loss report.
  • Set any number of price alerts on any number of scrips.
  • Flexibility to customize screen layout and setting.
  • Facility to customize any number of portfolios & watch lists.
  • Facility to cancel all pending orders at one click.
  • Facility to square off all transactions at one click.
  • Top Gainers, Top Losers, Most Active, updated live.
  • Index information; index chart, index stock information live.
  • Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
  • Online access to both accounts and DP to check live updated Order and Trade Book.
  • Facility to place after market orders.
  • Online fund transfer facility from your Bank account.
  • Online intra-day technical calls.
  • Historical charts and technical analysis tools

THINGS TO DO BEFORE OPENING A TRADING ACCOUNT

  • Ask for Demo:Contact the broker who provide online trading service and ask him to give you a demo of product.
  • Check if the broker trades in multiple stock exchanges. Usually most of the Online Trading Websites trade in NSE and BSE in India.
  • Check the integration of Brokerage account, Demat account and Bank account.
  • Compare brokerages with other peer companies.

Standard document required to open an Online Trading Account

  1. Proof of residence (Address proof-any one from the list)
    • Driving license
    • Voter’s ID
    • Passport
    • Photo credit card
    • Photo ration card
    • Utility Bill (Telephone, Electricity etc)
    • Bank Statement
  2. Proof of identity(any one from the list )
    • Driving license
    • Voter’s ID
    • Passport
    • Photo ration card
    • PAN Card
  3. Two photographs
  4. Bank statement and two cheques-one cancelled and the other for making initial investment.

ADVANTAGES OF ONLINE TRADING

  • Typically online trading requires the investors to pay lower brokerage.
  • In case of online trading there is no middle man involved.
  • In case of online trading there is no paper work involved.
  • Trading on a real time.
  • Investors can deal with different stock exchanges with single online trading account.
  • Mutual funds and IPO’s can be bought and sold on line.

You may like these posts:

  1. Investing in Indian stock markets- A guide for NRI’s
  2. What are Demat accounts?
  3. Principle 11. Utilize credit cards wisely.

4 Responses to “Going Online”

Share Market

October 11, 2011 at 3:25 pm

very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand

thank you for sharing this.
Regard
Share Market

Mcx Tips

October 22, 2011 at 5:37 pm

I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.

Regards

Mcx Tips

Nikhil

August 10, 2012 at 11:17 pm

Whenz your IPO coming in? ;)

J Victor

August 11, 2012 at 7:50 pm

:)

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