Online Trading Broker

How to start on line trading in India?

Hi, I searched on net but none of the thing helped me as a layman. I know, I need a pan card (I do) I need a demat account in a bank. (Say ICICI) And then, I need an online broker (ICICI Web Trading , 5Paisa, Sharekhan Online Trading ) After that, what I need to do??? How will this work? Do online transaction is better? Please explain all these for a layman’s perspective. Thanks a lot in advance.

Public Comments

1. when you have got an online account for trading, first you need to transer funds in that trading account. It's done online in case of online trading. Once you have done it, now you can start using it for bidding for shares. You can see lots of scrips listed on the trading screen, but they are not all, you you want to invest in some specific share, search it in the database of the site, and add in the list. Now lets come to the trading, say you want to by shares of ITC, and current market price is 181.5 rs per share. you can bid at that price or lesser than that. If any body would like to sell his share at that price, you will get them, but highest bidder will always get preference. I would suggest you to try some virtual trading games on investment sites lilke "moneybhai" at moneycontrol.com or trading game at wow-india.com. that will help you to understand it before putting in actual money. best of luck
2. you have done a little bit homework so now its easy for me to explain me the issue you have asked. you must have a pan,than you need a demat account but that will be always with the company on which you want to trade on line. means if you wants to trade on line on 5paisa than you have to have a demat account with 5paisa and if wants to deal on line with icici bank than you should have demat account with icici,actually in case a icici bank online share trading your saving/currant a/c,your demat a/c and your online share terminal account will be integrated .if you purchase share in this terminal your demat account will be automatically credited with shares and your saving/currunt a/c will be dr by the amount,& reverse will be done if you sold the shares. In 5paisa or other non banking online share trading terminal your saving bank will not be integrated with saving account in real time means if you want to purchase share than you have to transfer money to your account with share broker,and if you sold any share than money will be credited in your account after you send a request to broker for payment,nothing will be done in real time and normally payment can be transfered to broker with online bank account and same can be autometically credited by the broker on your request to your designated bank branch, for trading normally a software will be provided by the company ,by which you will be connected to the broker through internet or vsat and can trade yourself.the software will be updated as an when required ,you can create your portfolio in screen & trade in that share,some of the company also give client margin trading facility,for intra day it can be 10time of your net worth & in case of delivery it can go upto 4 times this limit are variable & available on the discretion of company.ofcource interest will be charged by company if excess delivery is taken by you. in software you will have same look like terminal as you have seen with sub broker. brokerage is also a negotiable issue & in case of intra day it can be minimum upto one paisa means 1000+exp on one crore turnover & upto 15paisa on delivery means 15000 on one crore.the rate will be charged on the basic of turnover ,more the turnover lesser the rate
3. I understand that you know to some extent, the broker provides a password along with an User ID for login into their website. Once you login, you need to transfer funds from your bank through online to start trading, alternatively you can submit a cheque for fund transfer to your account, but you may be able to trade only when the cheque gets cleared. Usually the broker's website will provide you a Java based screen where the shares are shown as per the portfolios you create within your account. The share rates will change automatically as per the market condition, you need not do a Refresh of the screen, there will be Function keys to help you to place the orders like Buy/Sell etc., The other screen is Market Watch where you need to press F5 key to see the current Market rate. Explaining the other screens will make you tired, so I suggest you visit the following sites to know it better.