Want to open Online Share Trading Account ? Here's what you should know

Online share trading account
Features of Online Share Trading Account

The trading system in the Indian equity market has transformed completely in the mid-1990s to 2000. Share Trading was much more complicated for retail investors until the online trading platform was introduced in India in early 2000. With the introduction of online trading one can now easily buy and sell stocks, mutual funds, ETFs, future, options, currencies, and commodities at an ease.

Earlier the only option for share trading was BSE trading floor know as "Ring" all brokers used to assembled together physically for trading. Then in the year 1992, the National Stock Exchange (NSE) was incorporated and launched an electronic screen-based trading platform i.e NEAT through VSAT. Later in 1995, the Bombay Stock Exchange (BSE) had also launched the same kind of trading system named as BOLT.

Introduction Of Online Share Trading Account:

The first online trading platform was introduced in early 2000 by Geojit and ICICI Direct. The 3-in-1 (Bank, Demat and Trading) online share trading account is a seamless trading platform was first introduced by ICICI Direct. Until now ICICI Direct was the market leader with the highest number of the trading account but recently Zerodha has taken over the position.

Online Share Trading has not only increased the retail participants in the market it has also increased the volume of trades in both the exchanges. In between the year 2000- 2008, Indian Stock Market has seen maximum retail participation in the market. The online share trading platform introduced during that period particularly the 3-in-1 trading platform has made a new revolution in the Indian Stock Market.  

The Stock Broking companies also expanded their associates and branches in PAN India level so that more retail investors could take part in the new technology introduced in the market. It was a win-win situation for both the retail investors as well as brokers. Both got benefited with the new technology introduced and technological development in the market. 

You may also like to read How to choose a Stock Broker for Investment

Advantages of Online Share Trading Account :

The main advantage of online share trading is accessibility, you can access your trading account and investments from anywhere in the world provided you have internet connections.

Flexibility is another advantage, earlier investors used to go to brokers/sub-brokers office to view rates and trading. After the introduction of online share trading, it has become flexible to check out the rates or putting up trades on at any time anywhere.

After the introduction of online share trading, an investor can link his demat and bank account and can get auto debit and credit for any buy and sell off shares. Investors need not to keep any balance to his brokers trading account, it has a seamless payment mechanism.

Fourthly one can get various trading tools like the charts, personalized alerts, portfolio watch, faster execution etc.

Another advantage of online share trading is that the investors have full control of their investment and trading activities, it almost eliminates the middleman.

The above are few advantages of online trading account but still there are few investors who like to trade in the old and orthodox method. They like to visit sub-brokers/brokers office for trading or call RMs/dealer to place order or rates.

If you are using any online share trading platform you need to check out whether the latest features mentioned below are there in your online trading account or not. If you don't find any of the below features then the time has come to change your online share trading platform now.

Top Features of Online Share Trading Platforms that you should have are:

The real-time data or live market streaming, there should not be any time lag on your online share trading terminal for fast execution of the trade.

Should have all segments with BSE and NSE including MCX, NCDEX, and Currency in a single screen.

The advance charting tools with important indicators like RSI, Moving Average Convergence Divergence (MACD), Simple Moving Average, Bollinger Bands, Fibonacci Retracements etc

You can get trading tools like Scanner to find out the trending scrips from the market like days high/low, 52 weeks high/low, bullish/bearish etc others tools like Option Writer, Trade signal guide, Spread signal etc are also available with the Brokers. 

One of the best features of online share trading platform is that you can get research/calls, global market, breaking news flash etc in the same trading screen window. It becomes easy to take the trading decision if you can get market-related news, calls and live streaming quotes together.

You can also get various order types to trade in the market in online share trading platform such as After Market order, high leverage order like Cover order, trailing stop-loss order like Bracket orders. These types of order can give you maximum profit and would minimize the losses. 

Speedy Process of Online Share Trading Account

Nowadays it has become very easy to open online share trading account, brokers are opening the trading accounts within 30 minutes. Earlier it was a very tedious job it used to take 10 to 15 days time to open the demat and trading account. Now you can open it through scan image. You need to upload all your documents like Photo, PAN, Adhar Card, Cancelled Cheque and Signature through scan image.

The main advantage of opening trading account through scan image is it opens your trading account in 30 mins but its disadvantage is it can misuse your signature. You don't know on which documents your signatures are used. You need to cautious in this part in case you are opening your online share trading account on scan image.


If you are new in the stock market you can open demat and online share trading account with a reputed established Borker keeping in mind the above features. If you already own an online share trading account and you don't find any of the above features then you should immediately change your online share trading account with other Broker.

You may also like to read Best Stock Investing Strategy| Earn Money from Stock Market

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Happy Investing!!!

Finogyan Team

Want to open Online Share Trading Account ? Here's what you should know Want to open Online Share Trading Account ? Here's what you should know Reviewed by Finogyan on February 25, 2019 Rating: 5

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