Let’s Understand the Indian Share Trading System
A share of stock is basically a tiny piece of a corporation. Share provides companies with access to capital, in exchange its gives investors a slice of ownership in the company termed as “Shareholders”. Brokers buy and sell stocks through an exchange, charging a commission to do so. An exchange is like a warehouse in which people buy and sell stocks. A person or computer software system must match each buy order to a sell order, and vice versa to execute the trade. Some exchanges work like auctions on an actual trading floor, and others match buyers to sellers through an electronic platform termed as Online Trading.
How to Open a Share Trading Account
To do any kind of share trade you first need to have a share trading account. For opening an account you need to register with any of the online trading portals or you can contact a broker to open the trading account. The service providers will take a nominal charge for opening the account and in most of the stock broker firms will charge an annual fee for maintain the trading account. You also need to submit documents that will prove your identity, residential address and of course your income details. In India you need to have a PAN for opening the share trading account.
Here are few tips on how to select the best service provider when it comes to share trading account opening:
• Company performance
While choosing the service provider for opening share trading account the first thing that you should consider is the reputation of the company in the market. Reputation should in terms of securing your money, better customer service, having a good experience and expert market analyzer. Make sure you subscribe the service of the company that has a proven track record and a name in the market.
• Customer Service
You should consider the standard of customer service that the company is offering such as the quality and efficiency of the system that they use, the expertise of the staffs and the extent of service they are offering. Be sure that the company offers trading facilities at the share markets that you are actually interested in trading. Get sound knowledge about mutual funds, bonds, IPOs, future markets etc.
• Security Measures
Security of your personal and banking details and financial information is a matter of great concern. Especially, when you trade online and while using online fund transfer facilities you need to be extra careful. So, make sure that the company implements best online security measures to protect your financial and personal data.
• Brokerage Fees
Various online financial services are looking out for potential customers. Find the ones that fit your particular investment strategy and basic share trading needs. Market for share trading has become competitive as more and more companies coming to this business due to the revolutionary online trading system. You can now expect really comparative pricing for the online trading services.
• Consultancy service
Check for the consultancy and research and analysis services that are offered by the company. Try and keep a close watch on the daily tips that these companies offer and see who is providing the most profitable stock tips. These consultancy services and stock tips provided by the firms at free of cost can really benefit you in making some profitable stock market investments.
Although the traditional share trading method is still in existence, however the Indian Stock Market is rapidly adapting the growing techniques & methods which give plenty of "common" people an opportunity to own their stocks. Be it a mom to the business professional anyone can be a part of this multi-billion stock market of India and trade anytime, anywhere and anyhow through “Online Trading”. Online trading has given anyone who has a computer, some money to open an account and a reasonably good financial history the ability to invest in the market. Online share trading account is one such form which provides a user-friendly platform for you to monitor stocks, order trades and stay synced with the stock market. Online stock trading and the associated knowledge behind it can prove as the best fodder for your cash cows in the market.
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