Since the 1850s, a lot has changed in the Indian stock market. Previously, share trading took place on Dalal Street under a banyan tree. As time passed, stock exchanges were formed where stocks were traded using an open outcry approach. Physical shares were sold before 1995. To identify buyers and sellers, investors had to depend on brokers. As a result, it tended to take 14 days to settle the shares.
Dematerialization, however, changed the shape of physical shares into a digital format. The trading cycle was cut from 14 to just two days! Indian investors had the option of trading stocks from the comfort of their own homes. ‘Online Share Trading’ is to thank you for all this. So let’s move ahead and look at how online trading has changed trading patterns.
What is the online share market?
Purchasing and selling shares online via a trading platform is known as the “online share market. A stockbroker gives customers access to a trading platform. In addition to trading shares, you can also exchange currencies, commodities, futures contracts, and options.
Advantages of the Online Share Trading Market;
The following are the major benefits of online trading.
1. Online share trading is very convenient:
You can do online share trading from the convenience of your home. You need a demat or trading account and a working internet connection for equity trading.
2. Online share trading is more Affordable:
The brokerage fee for online share trading is less than that for physical trading in India.
3. Online share trading eliminates the middleman:
All transactions are made through an online platform. There is no longer the need for a middleman. Your transactions are now occurring straight with the stock exchange. The overall trading costs have decreased due to the settlement period’s reduction from 14 to 2 days.
4. Online share trading platforms aid in portfolio monitoring:
You may keep track of your holdings through online share trading. You have access to your transactions’ details right at your fingertips. Orders to purchase and sell can also be made without a broker.
5. Online share trading is simple to use:
Traders don’t need to be computer literate to begin online share trading. Anyone with a basic understanding of computers can start trading shares online.
6. Online stock trading decreases errors:
Possibilities of errors are higher while dealing offline. Miscommunication is common because investors use call-and-trade services to place orders. Since the investor can place the order themselves, this issue is avoided in online share trading.
7. Research reports are accessible through the online stock trading platform:
Research reports and suggestions are available to you for free when you trade stocks online.
The Ease of Starting Online Trading
You must open a demat and trading account before trading shares online. You only need to open a trading account with a SEBI-regulated broker. You can store your claims electronically in a demat account. In contrast, a trading account enables you to purchase and sell shares on the stock markets. To open an online share trading account, you must have an active PAN card, a bank account, and evidence of address. Anyone can open a demat account, which can be started in 5 minutes with the help of demat apps for Android users like the Kotak Securities apps.
Thanks to the Kotak Stock Trading App, your smartphone becomes a dynamic trading platform. Real-time trading, live market monitoring, and in-depth research assessments of the Indian stock market are all available.
Conclusion
Online trading has expanded the potential for trading across the country by eliminating time and geographic restrictions and enhancing capital market transparency. Due to low-cost and broader accessibility, everyone may engage in online trading, regardless of their profession, financial situation, time restraints, or location.
In the stock market, time is valuable, and opportunities can appear and disappear in a split second. With the advent of digital technologies, accessibility has become a key consideration. In the upcoming years, online trading will undoubtedly give the next generation of traders a competitive advantage.
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