Sunday, 20 January 2013

online trading for the uninitiated

Online dealing for the uninitiated

With lots of your energy and energy and effort in hand, especially during dealing time (between 9.55 am and 3.30 pm when shares are exchanged in inventory markets), she assessments her 'portfolio' practically every day.

 She also assessments the latest investment guidelines on various inventory broker agent web sites. After doing a bit of analysis, she sometimes buys a few 'under-valued' shares.

Reddy is one of millions of retail store traders who have entered the booming inventory exchange through online dealing.

"There are over one thousand online dealing records,"says Jaydeep Arora, home, Sharekhan, an online dealing broking house. And, every month at least 50,000 such records are included.

The popularity of online dealing has been rising steadily since 2000, when online dealing was introduced. But the latest bull-run may be responsible for the sudden spurt in online dealing, which currently records for nearly 10% of the total volume of deals implemented on the inventory markets.

So how does one get started? It is very easy indeed. All you need is two kinds of accounts: a demat consideration and a dealing consideration with your inventory agent.

You are also given a login ID and password for online dealing or for e-broking. While the demat consideration is used for keeping all shares in dematerialised form (non-paper), the dealing consideration will allow you to buy or provide the investments.

Simple though it is, you should nevertheless take a few precautions.

Before selecting a agent, analysis on at least a handful of companies to find out the value-added and other online solutions offered. Take the best provide and preferably, go for well-established names.

Read all records completely and find out details such as the fee for keeping your consideration, its features and limitations.

Some companies require a minimum deposit (margin money) for keeping a dealing consideration.

Alternatively, fund transfer in association with a few banks is also available to make funds available instantly.

Be aware that promoting shares come at a cost: you will have o pay broker's commission, investments transaction tax and capital gains tax.

Keep photocopies of all your signed records relating to your consideration.

Once you begin online dealing, maintain your own records. It is likely that, being a little investor, the agent may not provide you much interest and solutions. So, develop your own system for filing all records.

Boom here we are at online trading

Mumbai: Online dealing is on a fluff run. The process of dealing shares on the net is a rage in Indian with both retail store and day traders dealing shares through sites such as sharekhan, icicidirect, Kotak investments and Indian bulls.

 In fact, equity and derivative online dealing has become so popular across segments that Sharekhan is planning to begin online dealing in commodities (NCDEX and MCX) in three to six months.

Till now, Indian has logged in 1.054 thousand records, since the NSE first allowed online deals in 2000.

While the online trade market is growing by 150% year-on-year, the value of all deals implemented through the internet on the NSE has grown more than seven times in two years (from Rs 100 crore to Rs 772 crore crore by August 2005).

Notwithstanding the latest fluff run and almost everyone -from the pimply teenager to the pot-bellied businessman - trying to cash in on the soaring inventory exchange, traders are increasingly logging online for the independence, ease and...

"Consolidation in the market, has left the few agents with no option but to deal with high networth individuals. This leaves smaller traders sidelined and with no choice but to go online," said Jaideep Arora, home, Sharekhan.

"Brokerage houses provide their retail store members with a detailed sector-wise analysis reports, guidelines and guidelines to invest and hints most agents would not otherwise give little retail store traders off-line," said Anup Bagchi, MD and CEO

Besides getting better interest online, retail store traders who throng online dealing sites revel in the high-class of submitting their strike cost at once, even if it is after market time, a high-class their off-line counterparts don't have.