As India’s stock market soars to all-time highs, it’s natural for new investors to get attracted and pour money into this dynamic asset class. So, if you are planning to dive into this lucrative stock market but thinking how to go ahead with it? Don’t worry, we shall guide you with the most important pre-requisite of share trading i.e. Opening an Online Stock Trading Account in India.
Before you can initiate trading in the share market, firstly you need to open a stock trading account. Online trading, a step forward from regular trading, is a quick and convenient way to speed up your stock market transactions.
However, there are a number of crucial points to be considered while opening an online stock trading account in India. Let’s explore them in detail!
Online Stock Trading Account: Meaning & Importance
A Trading account is one where you shall be placing bids for buying and selling shares.
Opening an online stock trading account is the first step to enter the giant trading world. You can hold not only stocks but cash, securities etc. in your online stock trading account.
These days having an online stock trading account is just few clicks away. With digitisation at its best, you easily get access to a free trading account and numerous features attached to it. A free trading app further adds to the advantages provided by an online trading account.
So, here we shall be highlighting Do’s and Don’ts for Opening an Online Stock Trading Account that you should keep in mind as a newbie investor.
Opening an Online Stock Trading Account: Do’s and Don’ts
1. Find a Good Stock Broker:
Finding and selecting a good and reliable stock broker is the very foundation of stock trading. Whenever you plan to open a stock trading account, you’ll find a plethora of options to choose from a variety of brokers. You tend to get confused in deciding the best broker to open your online stock trading account.
Don’t rush up things, take your own time! You may follow Do-It-Yourself (DIY) approach, make comparisons, get feedback from existing investors or refer experts for deciding the best online stock trading account.
2. Low Brokerage Account:
Check and compare the brokerage fee that is charged by different stock brokers. Know exactly what you shall pay as brokerage before taking the final call. You can easily grab a low brokerage online stock trading account. It’s anyways better to thoroughly research and find out a low brokerage trading account. Discount stock brokers usually charge a lower fee as compared to full service brokers in India.
Don’t follow the herd mentality! The selection of best online stock trading account must be based on your own trading style. Will you be trading quite often or you want to stay invested for a longer period?
3. Account Opening & Maintenance Fee:
You need to be aware of one-time fee and any recurring fee thereon. There are different charges for trading in different segments. You shall be paying for each transaction you make. Now, if you want to be a regular trader, opening a stock trading account with the broker charging lesser fees shall be a more feasible option.
Don’t just dive in blindly! Don’t forget to check the monthly fee, maintenance charges including hidden fees, if any.
4. Demat and Trading Account at one place:
To some extent, having demat and trading account at a single place usually helps in seamless trading. This way you not only enjoy a hassle free trading plus end up saving some of your money as well.
Don’t forget to check the advantages of opening a 2-in-1 Demat and trading account in India.
5. Free & Best Trading App:
Look for access to a free trading app that is a common benefit that comes along with opening a new stock trading account. Most of the stock brokers offer free stock trading apps that keep you updated on latest stock related news, market fluctuations and significant investing insights.
Don’t miss to check this extra feature in advance!
Online Stock Trading: A Final Take
The Sensex is surpassing its previous records and setting newer ones to be broken. Are you ready to begin your stint with online stock trading?
The brokerage charges for opening an online stock trading account may vary as per the transactions you carry on. At the end of the day, you hunt for cost saving options plus a wonderful trading experience.
Choose the brokerage plan that suits your individual financial requirements. Settling with the lowest brokerage charges stock trading account will surely help you in the long run.
Have you opened an online stock trading account? Do share your valuable experiences or any queries thereon.