Article

E-trade in India - scope

03 Jan 2020

In a way online trading is as simple as online shopping. Of course, you need to do a little more research and do some follow up monitoring, online trading is effectively as simple as that. Your trading account and demat account are online and everything from research to stock screening to order placement, execution, monitoring and follow-up are done online through a single trading platform. It can become a lot more seamless if you are accessing online trading on your smart phone, but we will leave that discussion aside for the time being. That is because, today trading platforms provide all the necessary support and assistance by providing secured real time access to trading, research reports, price analysis of stocks, market news, etc. even the interface between your trading account, demat account and bank account is virtually seamless.

How to start online trading (e-trading)

You can place trade orders or cancel orders at your will from the comforts of your home. It is as simple as that. It allows you to make your own decision with regards to trading without any interference of the broker. You can buy shares or invest in IPO or buy mutual funds as well. Even bonds, including RBI bonds are available for purchase online. Online trading can be done by simply opening a trading cum demat account with any SEBI registered broker offering the online trading facility. With the power of e-KYC, the account opening can be completed less than an hour. The documents required to open an account are PAN card, address proof, AADHAAR card, mobile number linked to AADHAAR, bank statement, cancelled cheque leaf and passport photograph. That is all.

How online trading has a distinct edge over offline trading

  • Online trading is simple as it enables a trader to have a hassle free trading experience. Anyone can use these platforms as specific skill is not required to carry out trading online. Just worry a tad about online security; that is all.

  • It is less expensive and therefore more economical. Brokers also promote online trading and charge lower rates of brokerage as it reduces maintenance and monitoring as well as RMS costs incurred by the broker.

  • Online trading can be relatively less time consuming. Before the advent of online trading, the process was cumbersome as you had to visit the broker or call your broker for placing or cancelling orders. Now a PC or a smart phone is sufficient.

  • Online trading gives complete control over the process; end to end. It allows the trader to have complete control from order placement to order modification to order cancellation and monitoring. Online trading is also extremely flexible.

  • Reduced chances of errors are one more advantage. In case of traditional offline trading, there were more chances of errors due to miscommunication between the traders and brokers. In online trading, the trader or investor can manage and control the entire trade transactions and execution.

  • It also provides effective and seamless monitoring of investment at all times. You can monitor investments at any time and from anywhere. Loss making stocks can be removed and profit making stocks can be added to your portfolio by observing the market moves.

  • Online trading enables seamless call to action. You can get access to top research recommendations, screeners, sorters, reports and analysis on stock price charts at the click of a button. You can decide the best move and also execute the same with less than three hops.

Future of online trading in India

Online trading has already grown close to 20% of the overall broking market in India and is likely to grow much bigger in the days to come. Online trading is not only being preferred by traders but also being encouraged by brokers. Here is why it has huge scope.

  • With the advent of broadband and low cost bandwidth, the internet access is becoming much more economical to operate.

  • The millennial crowd is having a soft corner for online trading as it gives them more control over their actions.

  • Online trading has now started incorporating machine learning and artificial intelligence so that focused planning of finances is also facilitated.

  • Low cost broking is here to stay and the largest broker in India (by number of registered clients) is already a discount broker predominantly online.

  • With mobile trading catching on, trading is becoming a lot more personal and contiguous. That could make all the difference.

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Beginner's Corner

E-trade in India - scope

03 Jan 2020

In a way online trading is as simple as online shopping. Of course, you need to do a little more research and do some follow up monitoring, online trading is effectively as simple as that. Your trading account and demat account are online and everything from research to stock screening to order placement, execution, monitoring and follow-up are done online through a single trading platform. It can become a lot more seamless if you are accessing online trading on your smart phone, but we will leave that discussion aside for the time being. That is because, today trading platforms provide all the necessary support and assistance by providing secured real time access to trading, research reports, price analysis of stocks, market news, etc. even the interface between your trading account, demat account and bank account is virtually seamless.

How to start online trading (e-trading)

You can place trade orders or cancel orders at your will from the comforts of your home. It is as simple as that. It allows you to make your own decision with regards to trading without any interference of the broker. You can buy shares or invest in IPO or buy mutual funds as well. Even bonds, including RBI bonds are available for purchase online. Online trading can be done by simply opening a trading cum demat account with any SEBI registered broker offering the online trading facility. With the power of e-KYC, the account opening can be completed less than an hour. The documents required to open an account are PAN card, address proof, AADHAAR card, mobile number linked to AADHAAR, bank statement, cancelled cheque leaf and passport photograph. That is all.

How online trading has a distinct edge over offline trading

  • Online trading is simple as it enables a trader to have a hassle free trading experience. Anyone can use these platforms as specific skill is not required to carry out trading online. Just worry a tad about online security; that is all.

  • It is less expensive and therefore more economical. Brokers also promote online trading and charge lower rates of brokerage as it reduces maintenance and monitoring as well as RMS costs incurred by the broker.

  • Online trading can be relatively less time consuming. Before the advent of online trading, the process was cumbersome as you had to visit the broker or call your broker for placing or cancelling orders. Now a PC or a smart phone is sufficient.

  • Online trading gives complete control over the process; end to end. It allows the trader to have complete control from order placement to order modification to order cancellation and monitoring. Online trading is also extremely flexible.

  • Reduced chances of errors are one more advantage. In case of traditional offline trading, there were more chances of errors due to miscommunication between the traders and brokers. In online trading, the trader or investor can manage and control the entire trade transactions and execution.

  • It also provides effective and seamless monitoring of investment at all times. You can monitor investments at any time and from anywhere. Loss making stocks can be removed and profit making stocks can be added to your portfolio by observing the market moves.

  • Online trading enables seamless call to action. You can get access to top research recommendations, screeners, sorters, reports and analysis on stock price charts at the click of a button. You can decide the best move and also execute the same with less than three hops.

Future of online trading in India

Online trading has already grown close to 20% of the overall broking market in India and is likely to grow much bigger in the days to come. Online trading is not only being preferred by traders but also being encouraged by brokers. Here is why it has huge scope.

  • With the advent of broadband and low cost bandwidth, the internet access is becoming much more economical to operate.

  • The millennial crowd is having a soft corner for online trading as it gives them more control over their actions.

  • Online trading has now started incorporating machine learning and artificial intelligence so that focused planning of finances is also facilitated.

  • Low cost broking is here to stay and the largest broker in India (by number of registered clients) is already a discount broker predominantly online.

  • With mobile trading catching on, trading is becoming a lot more personal and contiguous. That could make all the difference.