Online trading has changed the landscape of how investments are made.It is about buying and selling Securities over the internet.Earlier in Mumbai,a few brokers met under a tree opposite the Town Hall to informally trade in cotton. Being a port city, Mumbai was a busy hub of Commodities Trading.
Later,venues changed, and securities changed. The brokers organised themselves into an association known as ‘The Native Share and Stockbrokers Association’, which eventually became ‘The Bombay Stock Exchange (BSE) ‘s in 1875. The trading was known as the open outcry system. Hand signals and shouting was the process of buying and selling orders.
After that, National Stock Exchange (NSE) was established in 1992 as India’s first electronic marketplaces that brought more transparency to Securities Trading. In August 2000, the Securities and Exchange Board of India (SEBI) provided internet platform-based trading. From thereon, there has been no looking back, and now things have become online, and trading is simpler.
The journey of dealing in securities from under a tree to the fingertips is remarkable. Thanks to the advent of the internet, financial markets have evolved rapidly.
Benefits of online trading
No physical mobility
You need not visit the brokers’ office to buy or sell securities. A decent data connection to your computer or smartphone is enough to trade.
Easy account opening
For opening Trading Account online, you only need to submit relevant documents, and the account is accessible instantly.
Seamless integration
The Demat and Bank Account Get seamlessly integrated, and money flows to and from the bank safely and quickly. Use theUnified Payment Interface (UPI) for transferring money.
Lower commission
Unlike the traditional brokers who maintain an office and staff and pay overheads, online brokers are cheaper.
Elimination of dealers
A person who executes your buys or sells orders gets eliminated as you can execute trading by yourself online. This saves time and avoids missed opportunities.
Transparent system
With an online Trading Account, everything gets tracked. Everything is visible in real-time, from the time the order gets placed to the execution of the trade. There is no scope for manipulation.
Back-office access
Besides the trading interface, the online platform offers back-office access to check the contract notes, ledgers, and other reports. The back-office reports help with accounting and year-end taxation.
Portfolio tracking
Investments are trackable on the go and help with immediate decision making.
Day trading
This is possible thanks to Trading Account online. Day Trading is buying and selling shares without taking delivery of the same.
Trading tools
Many analytical tools are offered online.Charting tools, stock scanners, margin calculators, options calculators, backtesting tools, simulators, advanced order types like stop-loss orders, basket orders, etc., are some enhanced techniques traders can access.
Scope for learning
Online Trading Account Widens The scope for self-education and experimentation. Many online brokers offer their clients useful educational webinars and tutorials for self-up gradation.
Online trading is the best thing that has happened so far in the financial world. Many hitherto people who were averse to accessing the market due to its cumbersome system have now active investors and traders. Many more innovations have come in, like artificial intelligence, algorithmic trading, etc.
Online Trading Account has made the scope for earning that extra money possible. However, you should exercise caution and restraint while trading in the markets. They Are risky and cannot be overlooked. So, learn and trade accordingly.
Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, AppasahebMarathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.