Getting Started With Trading |Ideas And Planning|

 


In India, recent times has seen a sudden surge in the number of first time users of demat, meaning that the trading is picking up very well and is in line with the global trends. Dematerialization or Demat meaning converting of physical shares and securities of an investor to electronic format. This further infers that online trading is gaining popularity because there is an ease of trading from anywhere in the world. Physical presence and Geographic boundaries don't matter much now. 

Also read:- What Is An IPO Green Shoe Option?

How to do online trading?- Steps to follow.

Online trading is done over the Internet with minimal human interaction. This makes the entire process more cost-effective than offline trading. With so many advanced features, online trading in India has gained popularity and is considered safe too. Online trading is very simple and no prior experience is required though there are a few steps to follow, as listed below:

  • Find a stockbroker: The first and the foremost thing to do once it has been decided that an individual wants to do online trading in India should be to find a stockbroker. The selection of a stockbroker is mainly done on the basis of services offered, brokerage and other fees charged and his/her credibility in the market. It is very important that a stock broker is able to give good service, charge reasonably and maintain a healthy relationship with the investor (his client). 
  • Open demat and trading account: Next step is to open a demat and trading account. For trading purposes, it is important to have both demat and trading accounts though it is not necessary that both of them are used every time. Opening demat and trading account can be done online by :

Providing personal details like Name, PAN,DOB, address, bank details and email ID.

  1. Upload relevant proof of address, identity and Income.
  2. Self verify the documents for KYC
  3. Sign the agreement with the broker
  4. Submit the application

After completion of the above steps , a confirmation along with login details and unique ID is given to each account holder.

Also read:- Valuation Analysis Of Initial Public Offer (Ipo)


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