How to Start Trading Online in India: Simple Steps & Benefits

Introduction

There is no doubt that online trading has become an attractive way to earn an income from the very comfort of one’s home. The stock market is full of a variety of financial instruments that traders can choose from to invest in depending on their financial goals. However, if you are still confused about how to start trading online, this is a step-by-step breakdown to help you out.

The Step-By-Step of Online Trading

The trading process itself may seem complicated for individuals looking to enter the trading world. Below are the steps you need to follow to begin this journey.

1. Find a stockbroker

• The very first thing you need to do is to find a stockbroker 

• With the help of a stockbroker, you will be able to open a demat and trading account. 

• The Demat account helps store all the securities that you invest in, under one roof, electronically

• The enables the buying and selling of securities in the stock market. 

• When choosing a stockbroker, remember to check all the charges involved in both these accounts 

• Charges like brokerage charges should be compared between different stockbrokers and then chosen based on your financial goals.

2. Opening the Demat and trading account

• The process of opening a Demat and trading account has become extremely simple

• This can easily be done through the official website of the stockbroker you chose

• You need to fill up the online account opening form 

• Make sure that you add all the important KYC details like your name, email id, PAN, DOB, etc.

• You also need to enter your bank account details like bank account number, IFSC and account holder’s name.

• Copies of identity, address and income proof also need to be uploaded 

• Post this there will be an in-person verification, either through a video call or physically. This helps your DP or depository participant verify your authenticity. 

• After all these steps have been completed, you will need to e-sign the contract provided by your stockbroker. Make sure you through it before you sign it.

• After submitting the form, you will receive all your Demat and trading account details on your email and mobile.

3. Logging in and funding your accounts 

• To begin trading, you need to first log in to your Demat and trading account and money

• Next, you need to add money to your demat and trading a/c. 

• These funds will be added through your bank account, linked with your stockbroker

• You also have the provision to add more bank accounts with your trading account if you want to do so later.

4. Analyse stocks and start trading

• After logging into your Demat and trading account you can step foot into the stock market. 

• Here you can explore the different types of financial instruments that you can look to invest in

• It is important to look at their prices and analyse their price movements with the help of the various tools that Demat and trading accounts come with. 

• The stock market provides you with numerous options to trade including buying and selling stocks or trading in derivatives.

Conclusion

Anyone new to the trading world needs to dive deep into what is trading all about before indulging in the process. The chances of making a steady income through trading are ever-present, but potential traders must gain all the knowledge they can before they begin their journey. The very first step of this journey is to open a Demat and trading account with a reliable stockbroker. From there on, you can follow the steps listed above and enjoy the rewards that you reap through trading.