In today’s world, we have access to all resources on the screens of our computers and mobile phones.
From drafting important emails to sending and receiving money, everything is now possible by logging on to the internet.
Even buying and selling shares, i.e. online share trading is now available at the click of a button. It has changed the investing scene in India as it has brought convenience and control in the hands of the investors.
Today let us understand
1 What is online share trading?
2 Benefits of online share trading
3 How does an online trading account work?
4 How to open an online trading account?
5 Safety measures to take in case of online Share trading
What is Online Share Trading?
Online share trading refers to the buying and selling of shares through an online platform.
But, online trading is not limited to buying and selling shares. It also includes buying and selling bonds, mutual funds, ETF’s, subscribing to IPOs etc.You can start online share trading in India by opening a trading and Demat account with any SEBI registered stockbroker like Samco.
Benefits of Online Share Trading
Online share trading has revolutionised the trading environment in India by offering benefits such as:
1. Convenience
Online share trading is easy for investors, as it helps them trade and track their orders from the comfort of their homes. Technology has further simplified account opening process as you can open a trading account in less than 5 minutes.
2. Eliminating the middleman
A few years ago, a trader couldn’t conduct trading without the help of a broker. But with technology, the control has shifted from broker to trader. Online share trading does not need a sub-broker and has reduced trading costs.
3. Economical
Before when brokers would execute trades on your behalf, they used to charge high brokerages. But with online share trading, the brokerage cost has reduced, which increases your take-home profits.
4. Greater control over investments
A few years ago, you had to contact a broker to track your investments. But with online trading, you can access your investments and orders without your broker.
5. Faster transactions
With online share trading, the process of buying and selling shares has become fast and efficient. You can transfer funds between accounts instantly and buy and sell shares by clicking a few buttons.
How does Online Share Trading Work?
The Buying Process:
Step 1: When an investor wants to buy shares, he places a buy order through his online trading account.
Step 2: The transaction goes for processing to the stock exchange.
Step 3: Upon successful execution, the required number of shares get credited to the investors trading account.
The trader has two options
- Square off the position on the same day
- Take delivery of those shares
Step 4: If the investor doesn’t square off the position on the same day, the shares get credited in his Demat account in T+2 days.
The Selling Process:
Step 1: When an investor wants to sell shares, he places a sell order through his online trading account.
Step 2: The transaction goes for processing to the stock exchange.
Step 3: When the order is executed, the required number of shares are debited from his Demat account.
The trader has two options:
- Square off the position by buying the equal number of shares
- Sell shares as delivery from his Demat account.
How to open an Online Trading account?
Opening an online trading account with a traditional broker involves lots of paperwork. But, opening an online trading account with discount brokers like Samco involves 0% paperwork and takes less than 5 minutes.
The following is the step-by-step guide to open an online trading account with Samco.
Step 1: Visit www.samco.in and fill in your name, email id and mobile number to sign up for a FREE Samco Demat account.
Step 2: Upload the following documents:
- Photograph
- PAN Card
- Bank Proof (Cancelled cheque/ Passbook Front Page)
- Address Proof (Aadhar Card/ Electricity Bills/ Ration Card/ Phone Bills/ Voter’s ID)
- Income Proof (Bank Statement/ Demat Holdings Statement/ Form-16)
- Signature (Should match the one on PAN)
Step 3: Sign your application digitally
Post submitting the above documents, you will be redirected to the Aadhaar portal. You will then receive an OTP on your Aadhaar linked mobile number.
Once you fill in the correct OTP, your application will be successfully signed.
Within 24 hours your FREE Demat and trading account will be opened and you can start trading with Samco, the best stock broker in India!
(Click here for the step by step Demat and Trading account opening guide)
Safety measures to take in case of online share trading:
- Do not place orders from shared computers or cyber cafes.
- Always log out from your device after carrying out a trade to avoid misuse.
- Protect your personal computers against viruses or hacking by installing anti-virus software.
- Do not click on the “Remember me” option when you sign in to your trading account from a different device.
Final thoughts:
In this digital world, if you don’t have an efficient trading platform, then you might miss out on a million-dollar opportunity.
When you open an investment account with Samco, you get:
- Access to a 3-in-1 account which consists of a Demat account, Online Trading account and Mutual Fund investing account.
- A robust trading platform, with real-time information at lightning speed.
- Brokerage savings of up to 98%!
- Unique features like ‘Buy Today Pay in Two Days (BTPT), StockPlus and a lot more!
So, stay ahead of other investors, and take your first step towards stock market trading by opening a Demat account and online trading account with Samco, and get 100% brokerage cashback on all trades placed from the StockNote app for the first month!
Click here to open a free demat and trading account and get 100% brokerage cashback for 1st month
[Recommended reading: Best Stocks for Intraday Trading Now in India]