Traders and investors involved in trading stocks, bonds, and the currency markets can trade them online at their convenience. Online trading means the buying and selling of shares and securities through an online platform, with the help of a Trading and Demat account. Internet-based brokers manage and run these online platforms, and any individual interested in trading in the stock market can use these platforms. Online trading is super convenient and the investor does not have to call or visit the broker to place a buy or sell order or book a profit in the stock market. Here are the awesome advantages of online trading in India.
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Benefits of Online Trading in India
Before fintech revolutionised stock market operations, traders had to call their brokers to place buy or sell orders in the stock market. It was a tedious and time-consuming job. With the advent of online trading in the country, investors can place buy or sell calls, put a stop-loss, put market limits, check the status of their orders online, and research new companies and IPOs (Initial Public Offerings) using the internet. They can keep a close watch on every move in the stock market, and get instant news updates about domestic and international stock markets. The trading cost has also gone down with the application of online trading. Here are some major benefits of online trading in India.
- Convenience: Anything that can be done online is convenient and time-saving. To do online intraday trading or to invest for a longer horizon, an investor needs to open an instant online Demat account with a registered broker and start trading in the stock market. There is no requirement of visiting the broker and the account opening process and the trading can be done online. It makes stock trading convenient, quick, and accessible for investors.
- Cost-benefit: A significant benefit of online trading is the low cost involved in it. The traditional mode of investing involved paying a fee or commission to the broker for every trade you place in the share market. In the case of online trading, you need to pay only negligible fees to the online trading platform. A few reputed online trading platforms open demat and trading accounts for zero charges and waive off the annual maintenance charges for the first year for the investor.
- Easy management of the investment portfolio: It is easy to manage one’s investment portfolio using online trading platforms. Some dashboards show the entire stock holding portfolio of the investor, giving a clear picture of where his investments stand. The advanced user interface of online trading platforms allows the investor to make instant buy or sell calls and evaluate his profit or loss.
- Eliminates the need for middlemen: Online trading does away with the requirement of working with direct brokers. Along with making the trading process cheaper, it also makes it hassle-free. Online trading platforms are further lucrative for investors who do not want to work with traditional full-service brokers.
- Better investor control: Since online trading takes away the need to depend on a broker for every action, it gives better control to the investor over his portfolio. An investor can trade anytime he wants, from anywhere in the world, using the online trading platform. There is minimal interference from the broker, and an investor can independently make transactions in the stock market instantly and review them later at his convenience.
- Instant transactions: Speed and efficiency are two-star benefits of online trading. Instant transfer of funds between accounts is possible through online trading. It helps an investor generate faster earnings from his investment.
- Better understanding of money for the investor: Better understanding of money is an added advantage of online trading. An investor can study the market and with some research, he can predict if the market will rise or fall. This research can help the investor manage his investments better. An investor can review his investment portfolio from time to time and study how his trading decisions are affecting his returns. This financial knowledge makes an investor better equipped to invest further to generate gains from the stock market.
There are ample benefits of online trading for an investor in India. It gives the investor speed, efficiency, cost-effectiveness, and better control over investments to an individual.