Online trading has become a very popular method of earning money and growing your wealth overtime. There are multiple reasons why mobile trading is so popular: it eliminates the need of a broker, or an agent, and you can access the stock market 24/7 at the comfort of your home instead of going to the stock market bureau. Seems just the most ideal thing you need to grow your funds right? But although it seems great, at the beginning it may seem quite intimidating and confusing. Well, don’t worry we are here to guide you, in this article, we will walk you through the process of getting started with online trading.
Steps to Start Online Trading in India:
- Choose an Online Broker
The very first step of beginning your trading journey is choosing the right online broker who suits your financial goals. In order to choose the best share market app for your needs, you need to research different share market apps and based on your research choose one. To choose a suitable online broker, you need to take the following things into consideration:
- Fees charged by broker
- Quality of customer service
- User interface and ease of use
- Security features
- Account types available
- Services like stock and commodity trading, margin accounts, and futures contracts.
Moreover, you need to ensure that the broker is registered with regulatory bodies like SEBI (Securities and Exchange Board of India) and is trustworthy. This broker acts as your intermediary, facilitating all your transactions.
- Open a Demat and Trading Account
The next thing you need to do is open a demat account and a trading account using the best trading app you find. A point to be noted is that these two are two different accounts. A Demat account holds your shares electronically, while the trading account allows you to buy and sell financial instruments. Both accounts must be opened through a registered broker that is a member of Indian stock exchanges, like NSE (National Stock Exchange) or BSE (Bombay Stock Exchange).
The process typically involves:
- Getting your KYC (Know Your Customer) done by submitting documents, such as PAN card, address proof, and identity proof.
- Filling out an online or offline application with your broker.
- Making an initial deposit, as per the minimum requirement of your broker.
- Login and Add Funds:
Once your demat and trading account is ready, you can login using the credentials provided by your broker. To begin trading in bank nifty, deposit funds into your account through online banking or net banking. This initial deposit will be your capital for trading. It’s important to note that all profits made from online trading must be declared for taxation purposes.
- View Stock Details and Start Trading:
After you have added funds to your account, you need to start exploring the market. The app that you use will provide you with live market data, stock details, and company information. Once you have identified the stock that you want to trade in, you can buy stock orders through your broker’s online system. Monitoring your trades is crucial, as it helps optimize profits and minimize losses.
Before jumping into trading, it is equally important to have a strategy in place. Consider your risk tolerance and investment goals. Many brokers offer additional features like stop-loss orders, margin accounts, and real-time streaming data to assist in making informed decisions.
In conclusion, beginning your online trading journey is quite a simple process, but it requires you to find the right app, research, plan and have good knowledge of the market. By following the steps outlined above—selecting a broker, opening necessary accounts, funding the account, and beginning trades—anyone can embark on their trading journey. The key to success lies in understanding market trends, developing a strategy that fits your risk appetite, and using the available tools and resources effectively.