Buying or selling shares if you have a trading account and internet connection is called online trading. You can place trade orders or cancel orders at your will from the comforts of your home. It allows you to make your own decision with regards to trading without any interference of the broker. You can buy shares or invest in IPO or buy mutual funds as well.
Online trading can be done by simply opening a demat and trading account with any SEBI registered broker. Account opening can be done in a matter of 15 minutes. The documents required to open an account are PAN card, address proof, AADHAAR card, mobile number linked to AADHAAR, bank statement, cancelled cheque leaf and passport photograph.
Advantages of Online Trading are:
- Its Simple
- It is Less Expensive
- Quick & less time consuming.
- Complete Control
- Chances of Error is less
- Monitor Investment All time
- Access Reports.
Safety measures that have to be taken in case of online trading:
- Trade orders should not be placed from shared PCs or cyber cafes.
- Always log out after carrying out trade in order to avoid any misuse of your account.
- Personal computers have to be protected against viruses by installing anti-virus solution.
- Do not click on “remember me” option when you sign in to your trading account from a different location.
Investment in financial assets is offered by several brokers. You can choose that which suits your needs and demands after comparison of brokers on the basis of services, brokerage charges, etc. Online trading helps you trade or invest in the most secured way. Its simple, easy and fast to trade online.
FAQ of Online Trading
Q1. Can I open trading account online by self within 10 minutes?
Ans: Yes, you can opn trading account by yourself within 10 minutes
Q2. What document do I required in-order to open trading account?
Ans: PAN card, AADHAAR card, Mobile number linked to AADHAAR, Address proof, Bank statement, Cancelled cheque leaf and Passport photograph
Q3. Is trading online risky?
Ans: Yes it very risky but it is most secured way to trade and it is very simple and easy as well. You should have prior knowledge of finance and accounting.
Q4. Should I have prior experience of trading online?
Ans: No, You can take the help of financial advisors and research reports to make the right move at the right time.