The electrification of stock markets and the introduction of dematerialized securities has completely transformed the stock market trading and investments in India. The market which was earlier accessible to a limited sector of the economy was now accessible across the length and breadth of the country.
The market today is accessible from almost every device which has a working internet connection. As the popularity of smart phones grew, the number of traders and investors investing in the market also saw a sudden spike. Almost every other broker in India is now offering a dedicated mobile app for trading and investing in the markets.
Nowadays, every order which is placed on NSE or BSE is only placed online. Today we will take a look at the process of investing online in the markets.
Table of Content
Steps to Buy Stocks Online
Get a Demat Account
The first and foremost step before you could invest in the Indian equities market is to get a Demat account. Demat accounts are meant for holding all your securities in dematerialized form. It is very similar to your bank savings account, the only difference being that instead of money it stores your securities. DEMAT ACCOUNT CAN NEVER HOLD YOUR MONEY.
Demat accounts are opened by the depositories. There are two depositories in India NSDL and CDSL. You cannot approach a depository directly; the accounts are opened on these depositories by authorized members known as depository participants. You need a valid Photo ID and PAN card for opening a demat account.
Choose a Broker and Open a Trading account
Most of the Demat service providers are also registered members of the stock exchanges and provide brokerage services as well. Once you have your Demat account opened, you need to choose a broker. Before choosing a broker, you must check for the brokerage charges, track record and trading platform provided by the broker. Many brokers provide mobile apps which provide seamless trading experience.
Your broker will also need your KYC and PAN documents for opening a trading account. You will need to sign an agreement with your broker before you can trade. Most of the brokers are offering an online account opening.
Link Your Savings Account
Once you have your Demat and Trading account in place, you need to fund your trading account for investing in the markets. You can link your savings account with your trading account and add funds directly from your bank. Many brokers have also collaborated with banks and offer a 3-in1 account which is a combination of demat, trading and savings account which further help in ensuring a seamless trading experience for the investor.
Start Investing
Now you are all set for investing in the stock market. You simply need to open the online portal of your broker or use the mobile app, if provided for placing trade orders. However, before you invest in the markets, it is important to have experience and knowledge about the working of the markets. Technical analysis and research can help you in making the most out of the markets.
If you are a newbie, you can take the services of a registered investment advisor, who can help you invest by providing research-based trade recommendations for investing.
Conclusion
The stock market is one of the most sought-after platforms for investing, however like all other investment options, the stock market too comes with its own set of risks. Therefore, it is important to have your risk profile evaluated before you invest. You can have your risk profile evaluated from a registered advisor before you start investing.
Happy Investing!
