Online trading refers to the purchase or sale of securities through online trading platforms using an internet-connected device such as a computer or a smartphone. You are required to open a trading and demat account with a SEBI-registered broker for online trading.
What are the benefits of Online Trading?
Online trading comes with enormous benefits. Online trading tools are simple and easy to operate, and allow you to trade via the internet, as opposed to transacting through paper which is costlier and time-consuming.
Using an online trading platform, you can trade shares, equity securities, commodities, mutual funds, bonds, fixed deposits, and participate in IPOs and buy-backs.
The security features of online trading platforms allow you to transact safely with many checks and balances in place to help you avoid making costly errors.
Also, your online activities and details of all transactions are securely stored online for your verification later.
Online trading platforms also provide you easy-to-understand investment research, details of returns on your investments, and keep track of your capital gains.
As an online investor, using an online trading platform to minimise paper work, save time, and keep track of all the details pertaining to your investments.
How to open an Online Trading account
If you are interested in online trading, you will have to open an online trading and a demat account with a brokerage firm that provides these services.
Do check the annual and transaction charges associated with opening a trading and demat account. It is also important to note that online trading with brokerages will also invite fees as per the service agreement.?