Important Guidelines on Online Trading for Beginners

Are you new to trade, investments, stock trades, etc. and don’t know where to start?

Trading accounts were the initial vehicles for investing in India; but with the facility of the internet online trading now enables you to trade from the comfort of your home or your office. Online Trading in India has picked up pace with various companies offering services for online trading. Angel Broking is one of the top broking companies in India. Now offering online opportunities customers can NOW avail online trading facilities. Other top broking companies in India include Kotak Securities Limited, Reliance Money, India Infoline, Indiabulls, Sharekhan, etc. These companies offer online trading accounts whereby trading can now be done online.

Online brokers are also available who charge less commission than full-service brokers to help you trade online.

The key benefits of trading online are many. To start with, understanding how the market works and the financial terms can be simplified with the help of online investment platforms that are available on the internet for the early investor. Understanding the market has been made easier with the facility of the internet. With a plethora of online books explaining how to trade, how the Indian stock market works, share tips, etc. there are immense benefits the young investor an avail through online investing. The Indian market is prone to go up and down – there is high unpredictability in it; so it is important to make wise and good judgment of investments.

There are three important things that you need to keep in mind when investing online; you firstly need the computer, a stable internet connection and a subscription to a 3-in-1 online investing account with a service provider.

Online trading is far simpler as you can transact with merely a few clicks of your mouse. You can find a stock picking service or program online that could help you to identify and choose the winning stocks – in order to invest properly. While stock investing involves a lot of fluctuations of stock prices there are certain ways that you can shape your investments through Internet Stock trading. Online trading also relieves you of the manual hurdles you may encounter investing otherwise such as- lack of tools, having to make endless calls, deluge of paperwork, being dependent on other people, maintaining bank and de-mat accounts (separately and manually), etc. The internet provides you with a wealth of information besides analysis and tools which can help you to make informed decisions. You can multi task and invest in different asset classes like equity shares, mutual funds and IPOs all at one time. Besides that, you are provided with up to date information and analysis in an investor friendly format.

Before you plunge into investing online be sure that you first register as a member for an integrated 3-in-1 online trading account with a service provider. The three accounts usually are:

1) Online Trading account – where you can transact online
2) An internet enabled bank account whereby you can transact payments through an online bank account.
3) A demat account – a place where your shares will be deposited

When you choose an online investing account keep in mind the following:

• Check the credentials of prospective trading partners: It is very important to check the credentials of prospective trading partners – Various websites such as D&B ( http://www.dnb.com ) can help check the background of an established business. It is of utmost important that before you engage in any online trading activity o do your research!

• Speed of execution: While deciding on your investing account, it is important to have a fast pace account. You should be able to place your equity orders and receive quick order confirmations even during the peak times.

• Customer Care: Ensure that you’re online investing account has a dedicated customer care cell that will help take care of your queries and problems. Some additional features offered by certain accounts such as SMS alert, intraday trading in equities, ability to sell shares next day before receiving delivery, etc all which are based on your investment needs all add a bonus!

• Quality of information: You should opt for those accounts that offer the best of information, research support and tools – all of which are user friendly and the information should also be up-to-date.

• Safety & Security of the site: It is important to check all the inbuilt security features that are built in your system.

Now that you have some basic tips to follow before you start online trading you can start your daunting task with confidence!