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How to Trade Online Using Trading Account?

8 Mins 26 Dec 2023 0 COMMENT
Online Trading

Gone are days when trading meant voice and hand signals on a busy and bustling trading floor. Thanks to the advent of technology, any individual in India can now trade online hassle-free from the comfort of their living room. An important tool that enables this convenience is a trading account. A trading account connects an investor who is sitting in front of their computer or smartphone to the stock exchanges.

Here is a step-by-step guide on trading equities digitally using a trading account as an Indian investor. 

Why Trade Online Using a Trading Account?

Trading stocks digitally through an online account offers key benefits compared to traditional offline trading.

1. Convenience:

Leading Indian brokers provide robust online and mobile platforms available 24/7, allowing you to place orders whenever it suits you, even when markets are closed.

2. Real-time data:

Online trading platforms give real-time streaming quotes, Indian market data, and global market feeds. This helps you make informed decisions based on live prices.

3. Tools and research:

Top Indian brokers offer advanced charting, screening, risk analysis, research reports, recommendations, and analytics to find suitable investment opportunities.

4. Low brokerage:

Online brokers charge much lower brokerage, transaction fees, and other costs compared to traditional brokers. In fact, many offer zero brokerage plans.

5. Accessibility:

You can access your demat account from any internet-connected device. This allows investors to monitor their portfolios and trade on the go seamlessly.

6. Education:

Leading online brokers provide educational material, guides, videos, e-courses, and virtual seminars to help you learn online trading.

How to Start Trading Stocks Online?

Follow these steps to begin trading stocks online in India:

1. Choose an online broker: 

Research and select a trusted SEBI-registered Indian online broker that matches your preferences like account minimum, brokerage plans, tools, customer support, and ease of use.

2. Open a Demat and Trading Account:

Fill up the online application form and submit KYC documents to open a Demat and Trading Account. Approval is quick. You'll need a PAN Card, Aadhaar, and basic personal details. Brokers require a minimum initial deposit, usually Rs. 500-2,000.

3. Fund your trading account:

Fund your account by linking your bank account to enable online fund transfers or UPI payments. Make sure you have adequate balance to cover the initial deposit amount. You can also fund via NEFT, IMPS, cheques, or liquid mutual funds transfer.

4. Place your first trade:

Now start trading! Log in to your broker's website or app, research stocks, enter a symbol, quantity, order type, and price, review, and tap buy/sell to place your order. Trades execute in real-time. Use limit orders, not market orders.

5. Manage your portfolio:

Monitor your holdings daily, and track stock performance, news, and results. Set alerts and use risk management strategies. Reinvest dividends, add funds regularly, and rebalance periodically. Review your account value over time.

Pro Tips to Start Online Trading

  1. Choose a reputable online broker that offers the tools, research, and account types you need. Look for low commissions and fees.
  2. Open a demat and trading account. Submit your KYC documents and fund your account with the minimum initial deposit required.
  3. Develop an investment plan and trading strategy based on your goals, risk appetite, and capital. Never trade randomly.
  4. Research thoroughly before buying any stocks. Analyse fundamentals like financials, management, and competitive position.
  5. Use limit orders instead of market orders to control the entry and exit price points. Set stop-losses to limit downside risk.
  6. Start small with 1-2 stocks. Allocate only a small portion of your capital when starting. Build your portfolio slowly.

Conclusion

With an online trading account, you can now invest in Indian stocks and build a portfolio conveniently from anywhere. By selecting a trusted Indian broker, funding your account, placing trades, and managing your portfolio, you can buy and sell shares digitally. Research thoroughly, start small, diversify, and use disciplined risk management. Online trading is a modern-day blessing that lets you take full control of your investments.

 

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.