Benefits of Online Trading Account

The digital revolution has transformed investing and trading in India. What was once limited to wealthy investors and professional traders is now open to anybody with an internet connection. Online trading provides numerous advantages over traditional in-person trading including convenience, simplicity, and ease of access.

Here are the top 7 benefits of trading accounts in India

What is an Online Trading Account?

An online trading account allows investors to buy and sell stocks, bonds, mutual funds, and other securities over the Internet. Individuals or institutions can open a trading account with an online brokerage firm to access the broker's trading platform through a website or mobile app.

Additionally, investors can use the platform to get stock quotes, research investment options, analyse charts, place orders, monitor account performance, and manage their portfolio. In this manner, online trading accounts offer convenience, real-time access, low costs, and more control compared to traditional offline brokerage accounts.

Advantages of Trading Account

1. It is Convenient

The convenience factor is arguably the biggest draw of online trading. Investors can easily open a trading account from the comfort of their homes without visiting a brokerage firm or bank. KYC verification can be completed digitally through video calls, eliminating the need for in-person verification.

Once the account is open, investors have access to real-time stock quotes, charts, analysis tools, and trading platforms. Orders can be placed with just a few clicks either through a website or mobile app. Everything can be done online without having to visit a physical branch or call a broker. This convenience enables investors across India to participate in the financial markets regardless of their location.

2. It is Cheaper

Online trading accounts have significantly lower fees and commissions compared to traditional full-service brokerages. Most discount brokers in India charge zero account opening or annual maintenance fees. The only costs are trading commissions and statutory charges like STT and stamp duty.

For example, commissions for online equity trades range from Rs. 10-20 versus Rs. 100-300 charged by offline brokerages. Options, futures, currencies, and other derivatives can be traded online for Rs. 20-50 per contract versus Rs. 150-300 at traditional brokers. Large or active traders can further reduce costs by opting for brokerage plans with unlimited monthly trading or lower flat rates.

The cost savings from lower fees can directly boost investor returns, especially for small and mid-sized portfolios. Therefore, online trading makes investing more affordable for the masses.

3. Real-Time Access and Monitoring

Online trading platforms allow investors to monitor their portfolios in real-time throughout market hours. Live stock quotes, index levels, charts and news updates are freely available. Portfolio values are updated continuously as share prices fluctuate.

This enables investors to track profit/loss on existing positions, identify trading opportunities, place orders and review trade confirmations and contract notes. Everything happens in real-time making portfolio monitoring much more convenient compared to calling your broker or waiting for account statements.

4. Eliminates Dependence on Brokers

In traditional offline trading, investors rely heavily on brokers for information, advice, and order execution. This dependence is removed with online accounts as investors have full control over their trading decisions.

All the tools required for analysis and trading are provided on the platform itself. Investors can find opportunities, study charts, access research reports and place orders independently without broker assistance. This control and flexibility is appreciated by experienced investors.

5. Empowers Investors

Online trading transfers more power into investors' hands. They are directly in control of all trading decisions instead of relying on a broker's advice. Investors have quick access to their account statements, funds, and securities rather than waiting for a broker to provide details.

However, managing one’s own trading account requires financial knowledge. Over time, investors can learn technical and fundamental analysis, risk management, trading psychology and portfolio strategies. Learning by doing builds investor competence and confidence.

6. Allows Customisation

Online platforms offer a high degree of customisation not found in traditional broking. Investors can customise their dashboards to focus on specific securities, sectors, or information. Alerts can be set for price triggers or events like new 52-week highs/lows.

Advanced charting with indicators, overlays and options are available. Advisory reports, analysis and tools can also be added from third parties. Customisable mobile apps allow seamless access while travelling and the trading experience can be tailored to each investor's unique requirements.

7. Speed and Efficiency

Online trading accounts allow much faster order execution compared to traditional methods. Orders can be placed with a few clicks and get executed almost instantly. Speed is critical for day traders and scalpers who profit from very short-term moves.

Moreover, online accounts remove delays involved in calling brokers and manual order routing systems. Automated order matching ensures efficiency and speed. At the same time, safety is maintained through order limits and expiries. Faster trade execution gives online traders an edge.

Conclusion 

The many benefits of online trading have made it the preferred way to trade and invest for Indians. Convenience, cost savings, control and efficiency are driving rapid adoption across Tier 1, 2 and 3 cities. As technology improves further, online trading promises to become even faster and smarter. The traditional brokerage model is facing serious disruption from fintech innovators. For serious investors, there is simply no better option today than trading stocks online.

Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701022, E-mail address: complianceofficer@icicisecurities.com. Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.