Trading in the stock market has been an age-old financial tool to invest money in India. However, traditional trading included a long, daunting process, and only a select audience would access these services. It included finding a stock broker, paying their inflated fees and a very long process of documenting, confirming and finally trading. The broker traded on behalf of the trader. Now, with an online trading platform, the trading process is quicker and the trader has more control of his assets due to the elimination of middlemen.
- Select an online broker
The first step is to find a legitimate online stockbroker. A stockbroker will help you with all the necessary tools required for trading in one place. You can find an online broker on a free trading app. Be sure to verify the legitimacy of the broker by checking their SEBI number on their website. If the online broker charges a fee, it will depend on the nature of the service, the volume, and the frequency of the trade. However, zero brokerage trading apps are available as well.
- Open a Demat and Trading account:
The tools available on the investment app will help you with opening your demat account and trading account which are essential to getting started with trading. A dematerialized or a demat account is an account where your financial assets like mutual funds, stocks, shares, etc. are stored in a digital form for safety and ease of online trading. A trading account is a platform where the buying, selling and transactions of the trade take place.
- Do your research:
Whether you are a new trader or a veteran, you should do your thorough research before starting online trading. Online trading is getting a new face every day, and all interested traders must understand the trends and processes properly. It is important to compare and research about the trading apps and the tools and services they provide to choose the one which suits you the best. Learning about investment apps, which kind of stocks, shares and bonds you want to trade in, and their regular performance must be checked.
- Start trading:
After you are well-researched, have chosen an online broker and added money to your demat account, you can start trading. You can view the details of different stocks on your app and see live prices and updates taking place. You can make use of the tools available on the platform and learn to use them optimally. Whether it is option trading or futures trading, you will get the hang of it eventually.
It is also advisable to keep a check on Nifty 50 and other indices of different stock exchanges to be updated with the latest trends in the market. Online trading may seem intimidating at first, but if you have done your homework and completed all the steps required for trading online, you can become an expert in online trading in no time and successfully manage your financial assets anytime and anywhere.