At some point, all of us intend to invest in stocks. It allows you to build corpus by investing in shares of different companies strategically. You can buy and sell different financial instruments through online platforms, such as the website or nowadays the smartphone apps. This is called online stock trading. How do they work? It is hassle-free. They work through brokerage firms offering online services. As an investor, you need to do research and learn about different products for investing through the online medium.

Many times, smartphone trading works well for retail investors whose investing size is small. All the investor requires is a web-based smartphone and a trading as well as Demat Account with the broker. You can open these accounts on the smartphone itself. You may need to send an online activation request for the mobile trading platform. You can then login with the existing client ID and password.

Here is how online trading is beneficial –

• Convenience

Like online banking, online trading is an activity which makes your life extremely convenient. Right from opening accounts to buying and selling, everything gets done online. You need not visit the depository participant’s office, be it the bank or the broker’s firm, each time you invest. All you require is a reliable data connection, online credentials, and start trading quickly. The best part about online trading is you get the latest trend updates as alerts, keeping you abreast with the market.

• Broker charges

The most common reason for investing is to earn substantial returns. Precisely why it stings the investors when they need to park a portion of their profit with the brokers. However, you can opt for online stock trading and avoid paying a huge commission to the broker. You only pay the fees for using the platform, which is relatively affordable to the brokerage fees. This proves beneficial, especially if you are an investor who trades in large volumes as you do not end up paying a chunk of the profit as broker fees.

• No intermediary

The advanced interface of stock trading apps and portals allows you to track the investments quickly and see how each stock invested is performing. You can evaluate the investments and analyse whether you will make profit or loss. Also, there is no requirement of intermediaries for conducting trades on your behalf. You take all the actions by yourself. This makes online trading a lucrative service. Besides, you have better control over the stock portfolio and can manage them easily.

• Instant transactions

The best advantage of trading online is opening of accounts under one place. If you open the trading, bank, and Demat Account under one app or portal, you can instantly buy and sell orders, thereby managing the transactions seamlessly. You can quickly transfer funds between accounts, making sure the sales happen without delay.