Steps to Becoming an Online Stock Trader
Becoming
an online stock trader
Online
trading has given anyone who has a computer, enough money to open an account
and a reasonably good financial history the ability to invest in the market. Stock
trading in India occurs on its two stock exchanges: the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE). Just like the process to open a
demat account, you need to submit proofs of identity and address along with a
passport size photograph and the account opening form for opening a trading
account.
Following is a detailed guide on how to open a demat
account. Follow the steps given below and you’ll be a pro online stock
trader in no time.
1. Select the
stock broker or firm. Make sure that the broker is reputed and will take your
orders in a timely manner because time is of utmost essence in the stock
market.
2. Compare
brokerage rates that are the fees charged by the broker for processing your
orders. Discounts are given on the basis of the amount of trades conducted.
3. Note that
the broker who charges the lowest fees need not necessarily be good. Contact
the brokerage firm or broker and enquire about the account opening procedure.
4. Usually, the
firm would send a representative to your house with the account opening form
and the Know Your Client (KYC) form. Submit the above filled forms along with
two documents that serve as proof of your identity and address.
5. Your
application will be verified either through an in-person check or on the phone,
where you will be asked to share your personal details.
6. Once
processed, you will be given your trading accounts details. Thereafter, you will be able to carry out
online stock market trading.
The use of online stock market trading
increased dramatically in the mid to late 1990s with the introduction of
affordable high-speed computers and Internet connections. Online stock traders
place buy or sell orders for financial securities and/or currencies with the
use of a brokerage's Internet-based proprietary trading platforms. Stocks,
bonds, options, futures and currencies can all be traded online.
Make sure you read all scheme related
documents carefully before getting into the process of online stock
trading by reading all the articles and clauses mentioned in the
document.
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