What is Online Stock Trading and its Benefits?

By Advisorymandi Forbidden
20-June-2019 4:44:08 PM
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To make potential profits in buying and selling of stocks is the obvious reason why some people decide to do trading rather than investing in the stock market. In doing so, they register with a trading platform that can provide them the facility to buy & sell the stocks in the stock market. Back then, the trading can perform over the phones where the trader place buys or sell order to his/her broker over the phone. But, during the process, traders often lose the opportunity to time the market – means enter & exit at the idle market price. Giving the volatility, it is crucial for the stock price at which trader wants to enter or trade into a position and at what stock price, a trader wants to exit or trade out of a position.

But, good thing is, with time, the technological advancements have seen in the stock market where traders now can perform stock trading on the online trading platforms. Stock trading becomes as easy as online shopping.

Let’s get to know more about online stock trading and its benefits.

 

What is Online Stock Trading in India?

In simple words, online stock trading is the method of buying and selling stocks through online trading platforms. These online trading platforms allow traders to place buy & sell orders through the internet facility. Not just stocks, but other financial instruments like commodities, bonds, currencies, ETFs, futures & options can be traded online as well.

(Reference: NSE India, Retrieved from https://www.nseindia.com/content/assist/asst_internetinv.pdf)

Benefits of Online Stock Trading

Listed below are the main benefits of online stock trading in India:

Convenience of Placing Orders

We’ve already discussed the technological advancements of stock trading which made it more convenient to place buy & sell orders online. A person who is capable of using a computer and tackle day-to-day problems on the internet can easily opt for online stock trading. Next, you would need an online trading account with an online stockbroker to place your trades. For that, you don’t need to visit a bank or agent for the same.

So, in short, you will have the easy accessibility to place orders from any part of the country and decide the price and quantity of the stock rather than getting in call queues of your broker.

Say No To ‘Middleman’

Online stock trading offers a hassle-free process of trading stocks in the stock market without any middleman. With the internet facility, one can place buy & sell orders on online trading platforms with minimum or no communication with stockbrokers. This technological advancement removed the chances of placing wrong trade executions or any kind of misinterpretation, which used to happen very often back in days.

Now only you will be dealing directly with brokers but you will get the benefit of avoiding the excessive stock trading cost.

 

Low Cost

In online stock trading, the trader pays a lower fee to the broker when compared to the commissions’ charged in the traditional method of trading. On top of that even if you’re trading a large volume of stocks, the charges still remain same up to a limit. This is what makes it easy to secure profits in trading in a large volume of stocks and bring down the excessive broker’s cost.

 

Easy Monitoring

In online stock trading, not only traders can place orders and take into a position but can also easily monitor the performance of their investment portfolio through the advanced interface of trading platforms which facilitate the advanced monitoring tools available for traders. Traders can use their mobile phones or tablets to evaluate overall profit & loss performance on their investment portfolios and can take appropriate decisions accordingly.

 

 Better Control over Investments

Online stock trading gives full-control to the trader over the portfolio to make quick decisions regarding their investments which weren’t possible in trading stocks where the trader had to call his/her broker every time to place an order. But, in online trading, a trader can make instant transactions after considering all options which once trader had to depend on his/her broker to tell them the best for their money.

In short, the traders have to better control over their investments in doing online stock trading.

 

Immediate Transactions

In doing online trading, one can benefit from the faster transactions between two accounts almost instantly which will allow you to transfer the funds from one to another quickly. After this, all that left is to click to buy or sell a stock. With this, you can make faster transactions and generate good profits.

 

Deeper Understanding of your Money

With the technological advancement in stock trading, not only you will get the benefits of making easy trades but also, gain insightful of the stock market. With the online stock trading, you will become a more experienced trader with time and soon to predict the rise and fall of the stock market.

With time and experience, you will be able to manage your finances more comfortably.

Summary:

In a nutshell, one thing is clear, the online stock trading is way better than traditional trading. Once you are familiar with the process of online stock trading, you can set up your financial goals and gain a deep understanding of the market, you can start trading in it.

Hope, this article helped you in understanding the online stock trading and the benefits of online stock trading. Nevertheless, if you have any query or would like to add anything then, please don’t hesitate to mention in the comment section below.

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Author: Advisorymandi

AdvisoryMandi is India's most trusted Stock Market Advisory marketplace covers NSE, BSE, MCX & NCDEX. Invest with confidence and harness the power of AdvisoryMandi to make smarter investment decisions in Stocks, Indices, Commodities, Forex & IPO.

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