Beginners Guide for Stock Trading in India

Capital Market

You can become a successful trader if you keep a few things in your mind while you buy or sell shares online. Before you start trading, you need to know the trading environment. Here are a few essential things that you might consider to make profits:

The Tradebulls is a perfect encyclopedia for the investors that showers immense wisdom in the shape of researches, reviews, and analysis. You can learn the basics and advances of trading here on our website.
You can see some screeners of actual customers and artificial-intelligence-based data mining tools that can help you to choose the right share stocks for your trading portfolio.
The best way to learn online share trading is to start with a small amount so that you can manage the losses involved in silly mistakes that you might make in the process of learning.
Once you start to understand the trading interface you can escalate your trading values. There are some online stock market games too where you trade in a virtual kind of cash rather than putting your real cash at risk.
You can also learn the online stock trading process by checking out the demo on our website. In this demo, the whole trading process is explained most simply, making it risk-free learning for our valuable customers.

How to invest in stocks online

Online trading is just like offline kind of trading, but with a technical internet-connected interface. It can include the trading of shares, bonds, securities, and futures. You can invest in stock online via an online brokerage agency. Here, you need not meet the broker face-to-face. An online brokerage account is comparatively fast, easier and cost-effective than the offline trading. You just have to pick your favorite set of shares, the number of shares and the price you want to buy at. Online share investment is loaded with complex tactics and strategies. The online trading interface makes it easier for you to assess the value of a certain company’s shares with the help of expert tips, live screeners and performance graphs, still, you need to cross-check the market value and reputation of that group before putting your hard-earned money at the stake.

What are the charges in online share trading?

When you trade on the internet, your costs are generally lower compared to offline trading. However, the other statutory charges remain the same irrespective of whether you trade offline or online. Apart from brokerage and statutory costs, there are also hidden costs like liquidity costs, spread costs, volatility costs etc, which are hard to quantify.

Costs	Equity - Delivery	Equity - Intraday	Futures	Options
Brokerage	0.1% to 0.4%	0.02% to 0.05%	0.01% to 0.05%	Flat per lot
Securities Transaction Tax (STT)	0.10%	0.03%	0.01%	0.05% on sell side on premium value
	on Buy and Sell	on sell side only	on sell side only
Transaction / Turnover charges	0.00%	0.00%	0.00%	0.00%
	of turnover value	of turnover value	of turnover value	of turnover value
GST	18% on Brokerage + transaction cost	18% on Brokerage + transaction cost	18% on Brokerage + transaction cost	18% on Brokerage + transaction cost
SEBI Charges	0.00%	0.00%	0.00%	0.00%
	of turnover value	of turnover value	of turnover value	of turnover value
Stamp Duty	0.01%	0.00%	0.00%	0.00%

It needs to be noted that the brokerage cost is variable and largely depends on the relationship and the size of the business. The other charges are only collected by the broker on behalf of statutory authorities and hence these won’t change. All these charges are explicitly mentioned in the contract note.

In addition, online brokers may charge for use of the payment gateway, although NEFT and IMPS transactions are free from the broker’s side, although there could be bank charges. There are DP charges which are also debited to the trading ledger and these include the annual maintenance charges (AMC), charges for debit to the demat account, charges for dematerialization of shares etc.

Basics of Capital Market

Open an Account

Online Share Trading Basics

Steps to start your online trading portfolio

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FAQs

Is it safe to trade online or are there risks in trading online?

If I enter an MIS trade online, whose responsibility is it to close the trade intraday?

Can I buy equity, ETFs, futures, options and currency derivatives online?

Is it possible to open an online trading cum demat account without paper work?

What happens if my internet connection is down or the system is too slow?

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