To create wealth, it is important to not just save, but invest across asset classes and financial instruments. Online trading makes this process simple and hassle-free.

Over the past couple of years, online trading has gained huge popularity in India. Affordable smartphone, increasing internet penetration and growing awareness about the importance of investment are among the reasons for a boom in online trading.

Let’s understand all about how to trade online and online trading for beginners in this article.

  • What is Online Trading
  • Key Benefits
  • How to Trade Online
  • FAQs

What is Online Trading

Online trading means buying or selling shares and securities through a trading platform – i.e. either an app or website. Through online trading, you can trade and invest across a variety of asset classes, ranging from equity, derivatives, commodities and currencies. All this at the click of a button, or tap of your finger!

Click here to open Demat & Trading account with PL

Key Benefits

Before proceeding to the ‘how to trade online’ segment, let’s understand some of its advantages.

Online Trading has significantly simplified the process of investment, and made it more efficient, cost-effective, safe and secure. Here are some of its key benefits:

  • Convenience to trade from anywhere – Online trading is location agnostic. That is, it allows you to invest or trade from anywhere, during market hours. You just need to have a mobile, or laptop and an internet connection.
  • Track investments on real-time basis – When you trade online, all your transactions get captured in your Demat account in real-time basis. This gives you a clear view of your holdings, and helps you make investment or trading decisions accordingly.
  • Research – When you trade online using a trading app or website, you may get access to their sophisticated research.If you are a PL client, then you get access to comprehensive details about stocks, sectors, and in-depth analysis with actionable insights on the PL DigiTrade app. The app also enables you to access PL’s award-winning research reports and calls, across fundamental, technical, derivatives, and currency and commodity. PL clients can also create their own Action Lists, for customised and real-time notifications.

How to Trade Online

Now that you know the benefits of online trading, why wait? If you are wondering how to trade online, then follow these simple steps to get started:

Step 1: Choose the right stockbroker

Research is important not just for investing, but also in choosing whom to invest with. Make sure you choose a reputed, SEBI-registered broker.

Also assess the various products and services provided by the broker, to ascertain how many of your financial needs can be resolved under one-roof.

A full-service value-added integrated financial services organisation like PL can meet every financial need of yours, and also provide you the right guidance you may need in your wealth creation journey.

Step 2: Open Demat & Trading Account

Once you have chosen a broker, it is mandatory to open a Demat and Trading account for online trading. A Trading account helps you trade in shares and securities online, whereas a Demat account is a depository system that helps you store, monitor and track your shares and securities in an electronic format.

Think of Demat account as a bank account, which will capture all your transactions and hold your investments. It increases the speed of transactions, reduces cost and makes the entire process of trading smooth and hassle-free. Online trading for beginners is easy to start, with a Demat & Trading account.

You can open a Demat account online within minutes by providing the below mentioned documents:

  • Pan Card
  • Identity Proof
  • Residence Proof
  • Bank Account Proof
  • Proof of Income
  • Photograph

Once your KYC is complete, an Email and SMS comprising details of your Demat account number will be sent to you. This is a 16-digit identification number and is unique to every investor. It represents your financial identity at the time of trading or making any investments in the stock markets. Your bank account will also get linked to your trading account, to facilitate easy transfer of funds.

Click here to open Demat & Trading account with PL

Step 3: Explore & Add Money

Here’s an important point for online trading for beginners. Once your Demat & Trading account is functional, you should log in and explore the trading platform. Acquaint yourself with the steps and process involved in placing a trade. Also explore the various tools and data that the platform provides you with, to help you make informed investments.

Don’t forget to add money from your bank account to your trading account. You can keep replenishing your trading account as and when required.

Step 4: Start Trading

Now that you have added money into your trading account, you can start trading online! Make sure you research thoroughly, and evaluate your risk appetite, financial goal and investment horizon before making any investments. Whether it is a long-term or short-term investment, make sure you think and analyse before investing.

If you open a Demat & Trading account with PL, you will get access to our industry-leading research reports and calls. You can also opt for customised advisory services, to ensure the guidance and recommendation is aligned with your financial needs.

With these 4 simple steps, you are ready to start trading online!

Click here to open Demat & Trading account with PL


Is it safe to trade online?

Yes, online trading is safe. Demat account has brought in transparency and security and eliminated the hassle of managing physical share certificates. Further, it has eliminated the risk of theft. Ensure you trade online with a trusted, SEBI-registered broker.

Is online trading for beginners safe?

Online trading enables first-time investors to get started on their investment journey in a simple and hassle-free manner. Beginners must however understand that trading and investing comes with its own risks. So it is important to research and assess the risk-reward properly before investing.

Should beginners invest in stocks through online trading?

Online trading enables you to invest across asset classes. Once you open an account with a broker, you can use their trading platforms to invest. Investing in equities offers a chance to earn great returns. It is hence an attractive investment option. But remember to diversify your portfolio across asset classes to protect it from downside risk emerging in a single asset class.

Do I need any training before doing online trading?

No special training is required to start investing. But it is important to read, research and analyse investment opportunities. Thanks to the internet, there are numerous webinars, tutorials or blogs available at your disposal. You can go through these to gain a better understanding of the process of investment.

Click here to start your wealth creation journey with PL


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