- Difference between Investing and Trading
- What is online trading?
- Benefits of online trading
- How to start an online trading portfolio
- Difference between online and offline trading
- What are trading platforms?
- How to do online trading?
- What is fundamental analysis and how to do it?
- What is technical analysis and how can you do it?
- How to select best stocks for trading?
- Show all articles
How to start an online trading portfolio
We’ve waxed eloquent about about how online trading works in a previous post. A prerequisite before anyone can begin though, is a demat account, and a registration with an online brokerage firm. In this article, you will get a clear idea about steps for selecting a stock broker, opening a trading account online and how to start trading online.
- SEBI enrolled brokers are an extremely critical factor for picking your specialist. Discount brokers with long SEBI legitimacy are consistently more ideal.
- The most important factor - commissions charged by discount brokers ought to be low to justify the tag of a discount broker.
- Discount brokers must have all the required tools that will help you analyse your stocks and trades.
Steps for selecting a stock broker:
- SEBI validity: SEBI enrolled brokers are an extremely critical factor for picking your specialist. Discount brokers with long SEBI legitimacy are consistently more ideal. It secures the well-being of your cash for an extended time. Non-SEBI registered brokers are frauds. Stay away from them.
- Trading platform:The trading platform provided by the broker ought to be smooth and hassle free. It must incorporate facilities like placing ‘buy’ and ‘sell’ orders, placing market limits, putting a stop-loss, checking the status of an order, reading news about companies, viewing the list of securities currently held through the dashboard, etc. and you also have access to all your previous trades and investment statements.
- Customer services: Quality Customer Service is an important factor while choosing a broker. This could incorporate the pace at which your trading requests are executed.
- Costs [AMC, commission, etc.]: The most important factor - commissions charged by discount brokers ought to be low to justify the tag of a discount broker. High commission rates can gobble up your profits in the long run.
- Simplicity of enrollment: Discount brokers will probably be in a state of harmony with new innovations - for example, online opening of demat account based on Aadhaar Card verification disposes of paperwork and further diminishes costs.
- Support and tools: Discount brokers must have all the required tools that will help you analyse your stocks and trades. They ought to have all the expected charts to encourage the trader to perform desirable research.
Steps to open a trading account online:
- The Aadhaar-based eKYC method
These days it’s far simpler and faster to open your trading account - using the Aadhaar based paperless registration. This method uses your Aadhaar card details to complete your registration process online, as long as you have a valid mobile number linked to your Aadhaar card. Keep all of your scanned copies of your personal documents (PAN Card, Aadhaar card, and a cancelled cheque) on your device. You will be required to upload them during the registration process, after you’ve progressed past the Aadhaar linking step.
- Traditional Paper Registration
Start by downloading the trading account opening forms. The documents will include both the account opening forms and the KYC forms. Print out these forms, and fill in the required fields. You’ll also need 2 passport-size, self-attested photographs to affix in these forms. Once you are done completing the forms, sign in the the required places and attach your self-attested personal documents (PAN card, ID proof and address proof). Now you have to hand it over to your brokerage firm personally or by post.
How to Start Trading Online:
The steps you should follow before you invest in the stock market are:
- Get a PAN card: A PAN card is must for you for any financial transaction in India. PAN is required for opening a bank account, investing in the stock market and mutual funds, filing Income Tax returns etc.
- Get a broker: You are not allowed to go directly to a stock exchange and trade in the stock market. A facilitator or intermediary also known as a broker is required for traders and investors to participate in the stock markets. That’s why, get yourself a stock broker.
- Open a demat and a trading account: You are allowed to trade in the stock market only through demat and trading accounts. You must open a demat and a trading account before you can invest in the Indian stock mar via their platforms.