Online Share Trading - Using Technology to Enhance Efficiency and Boost Profitability

Online Share Trading has replaced the traditional form of share trading where physical share certificates were used for trading. Online share trading has done enormous value addition to the share holders, companies, stock exchanges and regulators like Securities and Exchange Board of India & Reserve Bank of India.

Share trading on line is used across stock exchanges in India and it has revolutionized the way stock brokers in India work. In online share trading a potential investor has to open a DEMAT account with an investment broker or a sub broker. The DEMAT account is then linked to the bank account of investor. Once both accounts are paired, the investor can start trading across stock exchanges. In India the prominent stock exchanges are BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). BSE is located out of financial capital of India and NSE is located in New Delhi.

Online share trading has increased efficiencies across systems. The investors can do quick transactions as they have more information at their disposal by virtue of online tools, and hence can make smart investments in shares. Companies benefit out of a better turnaround time as now they can have quick liquidation of shares and infuse more funds in their systems. Hence online share trading helps in getting more liquidity in the system. Regulators can now keep a track of transactions as records are available virtually. DEMAT and Bank accounts are linked which ensures smooth tracking of the funds movements.

Since the advent of Share trading online, there has been a surge in the number of stock brokers in India. Stock brokers are aggressively scouting for investors as now the business is highly dynamic. Brokers lure investors for online share trading since there is less need of initial investments, the returns are faster and there is availability of information pertaining to companies, global trends, local markets etc.

There has been a high jump in the volumes of trading because of Online share trading. India’s top stock exchanges are now playing a pivotal role in Global financial markets. Indian investor now has the ability to influence decisions at professional managed listed companies. Leveraging technology into financial markets is not only empowering an average investor but also ensuring rise of the Indian financial markets.

Online mutual fund investment is a definitive effort in ensuring that bulls rule at the stock markets. Stock brokers in India along with average investors are deriving highest mileage.

Online Share Trading - Investments at Click for todays Empowered Investor

Online share trading refers to the use of internet & software platforms for facilitating trading of shares across stock exchanges. Online trading is not limited to equity trading but also extended in commodity trading & mutual fund investments. With the use of internet across various trading channels, consumers have better insight and understanding on how to make best use of their savings and plan their investments in the best possible manner.

Gone are the days when investors had to trade in physical share certificates, wait for days before ownership of shares was transferred and hamper cash flow due to blocking of cash in physical transactions. Trading process is now investor friendly and quick. Online share trading, online stock trading, online commodity trading and online mutual fund investment are transparent as they are facilitated between multiple agencies such as stock exchanges, commodity exchanges and banks. Regulators such as Reserve Bank of India, Securities & Exchange Board of India have been promoting the use of technology in trading for better regulation.

Online trading in shares, stocks, commodities is done using DEMAT account and a bank account. Both the accounts are linked. Shares, stocks are transferred in virtual format into the DEMAT account of investor.

In India trading in stocks and commodities is done under aegis of RBI, SEBI, respective exchanges like, NSE(National Stock Exchange), BSE (Bombay Stock Exchange), NCDX (National Commodity and Derivative Exchange) etc. With the advent of online trading, transactions between multiple agencies have improved and there is a greater level of transparency in high value transactions. Online technologies help in reducing infusion of black money into the trading system.

Online mutual fund investment is being promoted aggressively by Asset management companies and it makes mutual fund management more dynamic. Fund managers can take strategic investment decisions with greater flexibility and investor in mutual fund can follow their investment with ease. In India IRDA (Insurance Regulatory and Development Agency) also works with other regulators in protecting interests of investors investing into mutual funds.

Investment in commodities require good understanding of action happening at ground level i.e. commodity prices across farms in case of agriculture produce, price movement across states, trading houses etc. With most of the information hosted online and online share trading platforms the investor can now manage investments with higher accuracy.

NRI Pan Card, share trading on line, online commodity trading and online mutual fund investment are the result of prudent administration and integration of technology into a robust trading process.