subject: Trading Stocks - A Beginner's Guide [print this page] Online stock trading is actually a very basic procedure. However, the steps are different across countries. For India, there are three important things to have before you can start trading, which are a Demat account, a trading account and of course, a bank account.
A Demat account operates on the same mechanism as a bank account in india, but instead of placing money into the account, a Demat account contains shares. Once an individual invest in a stock, the stock is automatically placed into the purchasers Demat account. You can easily apply for a Demat account through any financial institutions and the procedure of applying is as simple as filling out a form and providing necessary proof of identity. Once you have opened the account, the next step would be to open a trading account.
Trading can be done through various platforms, but it has been found that online trading is the most efficient and convenient way to trade. The online platform allows you to track prices and goes on to provide options to buying or selling prices. Furthermore, it is easier to track the information online, given that you have access to the internet. Lastly, you will need a bank account as a means to perform financial transactions. This bank account will be your platform to transfer money in order to buy shares. Be aware that you are also responsible to pay for brokerage fees once you start trading, regardless online or not.
Take note that all three accounts can be easily opened at any bank or financial institution. Additionally, with the advancement of the internet service in India, you will find online trading a breeze and no longer need to trade through the conventional way of trading through the phone.
