online share trading

Online Trading Account Basics

Online share trading is the mere buy or sells of equity order over the internet using technologies such as laptops and PC. Online Trading in India can also be done on smart devices such as smartphones. For online trading, you are required to open a free online trading account, which is called a Demat account. It is very easy to open and you can also ask your broker on behalf of you to open an account. The online Demat account requires you to complete a simple KYC process before you place any buy or sell order on the internet. In layman terms, online trading makes trading equity possible over the internet while making it a lot simpler, quicker and efficient.

 

The advantages of Online Trading?  

Here are some of the advantages of online trading over tradition trading of stocks and shares. 

  • Online trading gives you a lot more control over trade to the customer. You can place the order online, monitor your online orders and manage them easily over the internet. It makes stock market trading automated, each time you are profited or face losing your account is automatically adjusted to your trading account. 
  • Also, you get to enjoy a single secure interface where you can manage your multiple investments easily. Trading research and Trading tip can be disseminated through your online trading account itself so that you do not need to access multiple sources to research and execution. Under singlehood, you can see information from multiple sources to be used to gain profitability in the market. 
  • It gives you transparency in trade. You can access your account anytime and track your transactions in one go. It makes it easy for you to define the price you want to trade-in online stock trading and see everything happen before your eyes easily. Also, your Demat account and your online portfolio are immediately updated as per the loss or profit you gain in your trading account. 
  • Online equity trading also empowers your execution. Most of the brokers will give you a lower brokerage cost for any online stock market trading. You have a lot more control over your trades, broker expertise at a much lower cost. 
  • The online trading platform is seamless, and for example, the trader can research, take decisions as per analytics offered, compare stocks with screeners and directly execute the trade with a few clicks. Online share trading makes things very simple for an individual. 

 

Things to remember while online stock trading 

The individuals that are first time trading on equity online need to take some basic precautions. Here are a few of them: 

  • Always using dual authentication for a trading account and not leaving your trading account unattended and logged-in while you are off your seat. An individual must form logging out of their trading account each time they close a session. 
  • Your computer must be equipped with antivirus security that provides you protection from malware. Also, make sure that you update your antivirus regularly. Laptops and PC can be prone to cybercrimes and you can lose precious online market trading data that can be used by hackers. 
  • Make it a point to change the trading password every 15 days. This practice gives you an extra security layer and increases your chances that your account is never hacked. Also, you must make your online trading account password a bit complex to be guessed. Passwords obvious to guess such as names, date of birth or marriage anniversary are a cakewalk for hackers to enter your account and use crucial data from your account. You must make a password difficult to figure out.
  • Do not access your online trading account from a cyber café or over public wi-fi systems. Normally they are not secure connections and using them can risk your account to being easily hacked. Use a personal computer/ laptop, do not share your laptop with anyone else you. 
  • If you find that the computer has slowed down and opening multiple windows unnecessarily, you need to immediately shut your system. Do not use the trading account until a hardware expert has confirmed that your system is not compromised or hacked. 

 

Online share trading is simple and highly efficient when it comes to delivering you better transparency, management, and access to information and data to make informed choices. But at the same time, you need to be highly disciplined to make sure your system is off-limits from hackers to use your personal information such as password and data to hack in your online trading account.