Friday, 27 December 2013
Online Trading Sites Making Trade Easier Than Ever
Ever since its inception, the stock
market has been an attractive market for investors. However, with the advent of
paperless trading, share trading has gone to the next level. Especially for
regular investors for whom it’s a burden to maintain reams of stock
certificates, opening up an online account has become a necessity. In today’s
times, having a depository in this arena has become solved the biggest barrier
of investing in equities. No wonder, more and more investors are moving into
this form of trading.
A depository is something similar to a
bank account. Unlike cash, this one holds shares that belong to the investor in
an electronic or dematerialised form. The shares that are bought or sold are
reflected in the demat account of the online trading site chosen. This way, any shares that an investor holds in paper
form can be dematerialised and maintained by way of electronic credit.
The account at regular intervals will
also provide with an account statement showing the balance of shares in the account
and the transactions carried out during that period. They also offer many other
services such as electronic settlement of trades in stock exchanges and much
more.
When it comes to opening up an online
trading account, it can be done with any bank or with brokers and financial
institutions. In most cases, banks will offer attractive rates for an account
to be opened if you already have a savings account opened with them. But, if
you choose to go for online stock trading, it would be recommended that you
open a DP account and a trading account
with the same broker or financial institution.
It’s important to know that DPs charge
annual maintenance fees, transaction charges, and other miscellaneous charges
for dematerialisation. Make sure you look through them carefully so that you
are not in a state of shock later.
By having a demat account, you always
have an opportunity to carry out trade in a much quicker, smoother and safer
way. This way you can keep a check and monitor your transactions from time to
time.
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