Finschool By 5paisa

Finschool

How To Buy Stocks Online?

How To Buy Stocks Online?

How To Buy Stocks Online?

In the older times, stock market was difficult for a common man because of lack of know-how. That is why it was extremely essential to consult a stock broker before investing. Back then, the brokers were the only source of stock purchase.

The internet has solved this problem for the common man. Now there are a large number of websites that give you a good working knowledge of the stock market. They can also give you good advice about when you should and shouldn’t invest in shares.

Thus, with the authentic information about stocks that is available on the internet, people with limited savings can get good knowledge about the stocks. They can not only get information about the stocks, but they can also buy stocks online starting from prices as low as Rs. 500. 

Process of Buying Shares Online
  1. To buy and sell shares, one needs Demat and Trading accounts. Both of these are provided by the two Depositories namely NSDL and CDSL through brokerage companies. One has to visit or contact a brokerage company office for opening those accounts.

  2. Generally, stock trading is possible in India between 9:30AM to 3:30PM. Stocks can be traded on all working days from Monday to Friday. The stock exchanges are closed on bank holidays and national holidays.

  3. You can log into you online Trading account. Visit the online portal of your trading account. To log into your trading platform, you will have a user name and a password. Make sure you memorize these important login details.

  4. It is important to do a pre-study before selecting a stock. Stock study is not just a study of its market price. More than the price, it is important to judge the company’s fundamentals.

  5. To buy stocks, put a buy-order to trading account and wait for order execution. Setting up a price-limit to buy stocks is a good habit.

As you can see brokers are no longer a necessary part of the transaction while buying and selling shares. However, it is still advisable to consult a broker.

With the changing times brokers too have modified their services. Few years ago, there was only one type of broker, the Full-time broker who handled the complete buying, selling and monitoring of your shares. Today there are different types of brokers available in the stock market:

Types of Brokerage services
  • Full-service broker

    Full-service broker is a broker who gives Stock advisory plus trading facility to the investors. They generally charge 0.3% to 0.5% of the total amount invested by the customer as brokerage. Suppose you buy 1000 ICICI bank shares for Rs.500 each, your brokerage charge would be Rs.500000*0.5%= Rs.2500

  • Discount Broker

    These are new brokers who provide a trading platform to the investor but don’t give much advisory. Discount brokers usually charge Rs.20 per trade, irrespective of amount. Suppose you buy 1000 ICICI bank shares for Rs.500 each, your brokerage would be flat Rs.20.

People who are not so internet savvy and hesitate to buy stocks online it is great to refer a broking agency. Check out 5paisa.com to find out the services on offer for trading in stocks online. We offer a flat rate of Rs.10 for every transaction whatever the value of the deal. This makes our services valuable whenever you are buying shares.



Related Articles

fundamental analysis vs technical analysis

Everything One Should Know About Fundamental Analysis & Technical Analysis



Read More
How to select a good broker

How To Select A Good Broker?



Read More
Basics Of Stock Trading

Basics Of Stock Trading



Read More
Who Uses Algo Trading?

Who Uses Algo Trading?



Read More
Short-term trading vs long-term trading

Short-Term Trading vs Long-Term Trading



Read More
Cash and Carry Arbitrage

Cash and Carry Arbitrage



Read More
22. How Tagging Your Trades Can Improve Your Results

How Tagging Your Trades Can Improve Your Results



Read More
Difference Between Cash And Future Market

Difference Between Cash And Future Market



Read More
prerequisites before trading

Prerequisites Before Trading in Stock Market



Read More
How Are Stocks Settled After A Trading Holiday?

How Are Stocks Settled After A Trading Holiday?



Read More
What is Algo Trading?

What is Algo Trading?



Read More
Reverse Cash And Carry Arbitrage

Reverse Cash And Carry Arbitrage



Read More
Difference between Trading, Investing and Speculating

Difference between Trading, Investing and Speculating



Read More

How to Select/Pick Stocks for Intraday



Read More
Do’s and Don’ts of Stock Market Investing for Beginners

Do’s and Don’ts of Stock Market Investing for Beginners



Read More
10 Things You Learn While Trading

10 Things You Learn While Trading



Read More
Why Should You Do Algo Trading?

Why Should You Do Algo Trading?



Read More
Some Share Trading Terms You Should Know

Some Share Trading Terms You Should Know



Read More
selecting a stock broker

5 Factors To Look At While Selecting A Stock Broker



Read More
What is SPAN Margin Calculator?

What is SPAN Margin Calculator?



Read More
diversify

Diversifying In The Time of Market Volatility



Read More
Exit A Losing Trade

The Right Way To Exit A Losing Trade



Read More
5 short term trades

5 Short Term Trades



Read More
How Much To Invest When You First Start Trading?

How Much To Invest When You First Start Trading?



Read More
10 Trading Secrets Every Investor Should Know

10 Trading Secrets Every Investor Should Know



Read More