To start trading online, you need to open a demat and trading account with a stockbroker. After opening a demat account, you can add money by logging in to your bank account. The best share trading platform allows you to view stock prices, historical data, charts and enables you to buy and sell shares in India. Explained below are the steps on how to start trading online in India:
Four steps to start online trading in India
1. Find a stockbroker
The first step will be to find an online stockbroker. They provide you with the facility to open a demat and trading account. A trading account helps you place a buy or sell order in the stock market, whereas a demat account stores the shares you buy in a digital format.
Additional Read: How to open Demat Account?
While choosing a stockbroker, check the Demat and trading account opening charges and the demat annual maintenance charges (AMC). Bajaj Financial Securities Limited provides you with an option to open a free* Demat and trading account with zero account opening charges and zero AMC for 1st year through its Freedom Pack (AMC of Rs. 365+GST is applicable from the second year onwards).
Next, you must check the brokerage charges. The broker charges a brokerage fee whenever an order placed in the stock market gets executed. This fee can depend on the trading volume of your order, or it can be a flat fee per trade irrespective of the trading volume. Traditional brokers levy percentage-based brokerage proportional to the trade volume, which increases the brokerage costs if you trade more often. With a flat fee per order, you can save significantly on brokerage costs. Bajaj Financial Securities offers a flat fee per trade which can save you big on the brokerage charges.
Additional Read: Difference between Demat Account and Trading Account
2. Open demat and trading account
To open a demat and trading account, you need to fill an online account opening form with the broker. The form filling process is easy, and you can complete it in less than 15 minutes. With Bajaj Financial Securities, you can open an account by following the below steps:
- Visit the account opening form link.
- Enter your basic details, such as name, email id, PAN No., DOB, etc.
- Provide your address and bank details.
- Upload documents related to your proof of identity and proof of address.
- Please choose from our affordable subscription plans. If you want to open a free* account, you can select the Freedom Plan.
- Perform a self-verification by recording a short video of yourself and submitting it.
- E-sign your form through the OTP sent on your Aadhar linked mobile number.
- Submit the application, and you will receive a confirmation regarding your account opening and login credentials in a short duration.
Additional Read: How to Open a Trading Account Online in India
3. Login to your demat and trading account and add money
Once you have your demat and trading account login and password, you can log in to your account and explore the trading platform. If you have signed up with us, you can download our mobile trading app for a seamless trading experience.
Now that your account is created, you can add money from your bank account to your trading account. Note that you can also transfer money from your trading account to your bank account.
4. View stock details and start trading
Now you are ready to get started with online trading in india. You can view the live market prices of shares in your trading account. You can select a share and view its in-depth detail, historical prices, charts, etc. Once you are through your analyses, you can start buying shares and start your investment journey.
*Account opening is free for Freedom Pack, with zero annual maintenance charge (AMC) for 1st year & Rs. 365+GST from the second year.
Additional Read: What is intraday trading?
Frequently asked questions (FAQs)
Is it safe to trade online?
Yes. With many advanced measures of securities and authentication, it is absolutely safe to trade online. All brokerage houses now use the CDSL generated T-PIN based authentication mechanism. T-PIN is a one-time user-generated PIN that, once verified, can be used to place orders through the demat accounts of CDSL. You can use this facility if your broker opens your account with CDSL.
Is stock investing safe for beginners?
Share trading is simple for beginners today, thanks to the advancement of technology. However, considering that it involves money, it is important to understand all the risks and rewards before you start investing. In fact, with Bajaj Financial Securities Limited investing is even simpler. You can invest in a basket of stocks curated by ‘PickRight’. This spares you the trouble of researching for hours and helps your portfolio grow with the right advice. Click to access
Is stock trading for beginners?
Yes, stock trading is for anyone and everyone you do not need any specific qualification to do stock trading. However, at the same time trading requires analysis, research, and understanding company’s balance sheet and its price patterns. The study of these concepts is called Technical Analysis and Fundamental Analysis. A good trader is someone who studies the market to acquire these skills. In the age of internet, learning these is not difficult at all as the access to information is easy and at times free. It is important to understand that learning these skills takes time and a stock trader should take risks accordingly.
Are stocks a good investment for beginners?
Stocks are one of the most attractive form of investment for beginners. Primarily because investing in stocks is very simple in the online world and beginners can start investing even with Rs. 100. Stock market allows beginners the room to learn while investing with low exposure of capital. With rising inflation, traditional sources of investments like Fixed Deposits for example have yielded far lesser returns than stock market. Especially after the pandemic, investors have rushed to the stock market after realizing the significance of investment.
How can I trade online?
- Identify your stockbroker: The first step is to identify a stockbroker registered with any of the two depository participants- CDSL or NSDL.
- Open a demat and trading account: Open a demat account and trading account with your stockbroker. You can open a free demat account with BFSL’s Freedom Pack.
- Add money to your trading account: Link bank account with your trading account and start buying and selling in the stock market.
You can view stock details, history, analysis, and charts to help you make a good decision.
Can I invest small amounts of money in stocks?
Yes, the beauty of investing in stock market is that you can invest on your own terms and with the amount you are comfortable with. You can start your stock market investment with amount as small as Rs. 100. You can learn while investing small amounts of money. With Bajaj Financial Securities beginners can also access curated stock baskets for long term investment (offered through Pickright*) and invest hassle-free. Start Investing Now!
What are the benefits of online trading?
The benefits of online trading far outweigh the costs. It is a secured, online method of trading financial securities that reduces the risk of losses and theft along with time delays. You can easily trade securities across geographical boundaries and multiply your wealth with careful research and analysis, which a robust trading system can support.
Online trading also allows you to experiment with various securities and trading strategies that you would not have been able to in a physical trading environment. Many complex and profitable strategies can be built with online trading in nanoseconds, and even bot trading is now an acceptable method for profit generation.
Should I be experienced to start trading online?
No. You don’t have to be experienced to start trading online in india. You can learn the steps as you apply for a demat account with a broker. Once demat and trading account are opened, you can start trading in India using simple instructions for delivery-based trading. There are demo videos and hand-holding sessions available online.
You can also read about various types of trading strategies and the process of trading to understand how things work in online trading.
How much money do I need to start trading stocks in India?
Stock Market has shares of thousands of companies listed. The prices of these shares can range from less than Rs. 10 to more than Rs. 50,000. Therefore, you can start participating in stock market with capital as low as Rs. 100. You need to meet the price of share and the associated brokerage costs.