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As we move forward in the ever-digital abyss, this modernity entails a turn towards everything online which also means trading in stock market allowing people to trade from anywhere and everywhere to engage with and own stock of all sorts.
The advantages of trading online are ever apparent:
- Better access to the trading patterns for folks anywhere and everywhere
- Freedom from the encumbrances that physical stock ownership entailed
- A much faster account opening process and trading platforms
- Less burdensome, virtual database to store and keep a track of the records for each transaction you do in stock market
Predicting the online trading trend
The plethora of advantages has allowed a persistent and exponential drive towards online trading for the masses, whether it be the wealthy or the not-so-well-off. With the ever-growing digitalization, such a trend doesn't come with much surprise to the initiated, and it's to be welcomed as it only leads to the democratization of the trading industry.
According to Statista's data, the size of the global e-trading market soared to $8.28 billion at the start of 2022. In the U.S. alone, over half of their population owns stocks already, with a large chunk owning stocks through online means.
What is trading account and Demat account, and why do I need it
A Demat account is an account that allows for ownership of stock of shares in an electronic format. It can be said to 'dematerialize' shares by enabling their conversion from their physical form into a virtual one. Demat accounts were on the precipice of democratization of stock ownership as they enabled online trading.
A Trading account is an account required to conduct any stock trading activity. The holder of this account is assigned a unique ID that allows them to conduct trading transactions.
These accounts differ in their functionalities as trading accounts seek to facilitate the trading of securities in the market, whereas Demat accounts allow for virtual ownership of such stock or securities. Both these accounts together serve a pivotal role in facilitating the trading of securities in share markets.
Their practical functionalities can be demonstrated as follows: when a trader purchases any stock, he makes use of his trading account with the money being debited to his account or bank account, and the shares (purchased virtually) are now shown in his Demat account. Thus, the accounts are shown to supplement one another and only facilitate stock ownership and trading through online means.
Explaining the adoption of online trading
As someone who wants to generate wealth from the ever-rising opportunity in the stock market, you need to understand the basics of stock market online trading. It makes sense to take the services of a reputed broker, who can act as your depository participant and help you make secure and hassle-free trades in the stock market.
Some leading financial services providers in the industry can help you open a Demat and Trading account with minimum documentation and for negligible account opening charges. The time required to open your Demat and Trading account can be as less as 10 minutes with some of these brokerage houses. Thus, with the right Depository Participant, adopting the online trading process can be a cakewalk!
Adopting the online trading trend
Stay abreast with the online trading trend and start your online trading journey with these four simple steps:
- Find a reputed online stockbroker. With the right brokerage partner, you can open not only a free demat and trading account but also an account with zero AMC for the first year. It also makes sense to opt for a broker who provides you a flat fee per trade, unlike the traditional brokers who charge percentage-based brokerage, ultimately reducing your profit.
- Open a Demat and Trading account. This can be easy and quick with certain reputed brokers completing the online process for you within 10-15 minutes.
- Login to your Demat and Trading account. Add money to your trading account and get set for online trading.
- Conduct your analysis. View live updates on stock market prices and start your online trading journey.
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