Share Trading: From "Dependence" to "Self Reliance"

With the advent of technology, the share market investors, who earlier used to call up their brokers and place stock trading instructions over the phone, now transact independently by making use of their respective online trading accounts, in the comfort of their homes and at the time they like, all at the click of the mouse. All one needs is a computer, a net connection and a subscription to a three in one online investing account.

Online trading is thus an internet based transaction activity that involves no direct involvement of the broker and thus reduced brokerage charges. The investor transacts himself and the buying and selling decision rests with him. Some online brokerages offer advice from live brokers and broker-assisted trades as part of their service, who help the investor fully understand the pros and cons before investing in a particular stock.

The investor has to register with a trusted online trading portal and enter into an agreement with the firm to trade in different securities following the terms and conditions laid down.

The online mode of investing largely eliminates all the major hassles of investing. Online brokers usually have good security measures, including automatic logouts and transmission encryption. The servers of the online trading portal are connected to the stock exchanges and designated banks. The order processing thus is done at correct timings. The trading platform also helps the investor in getting trading updates and in checking the current status of their orders. Another advantage is that the trading platform provides real time streaming quotes which enable quick decisions. Brokerage houses also provide qualitative research content (both fundamental as well as technical) in an investor friendly format on their websites, such that the clients can take informed decisions regarding investing. One can invest anytime and from anywhere as per their time and convenience (yes, even at night)!

In India, the major financial products and services of the online trading are:

• Equities

• Mutual funds

• Derivatives

• Insurance (Life and Non Life)

• Loans

• Fixed deposits and bonds

• Share trading

• Commodities trading

• Tax services

• Portfolio management and financial planning

In the course of his dealings, an investor should always ensure that sufficient funds and securities are available in his account and that he is regular in payment of margins so as to avoid the blocking of his account.