Best online Stock Trading Companies

---

Some of the best online stock trading companies are

1. Indiainfoline
2. InvestSmart
3. Reliance Money
4. Indiabulls
5. Geojet
6. Sharekhan
7. Religare Security / Equity

At Present I started account with sharekhan they take only 0.1% Brokerage for intraday (if opted for a 750rs Plan). & service is very good. Opening an account with Sharekhan was a pretty smooth affair for me. It is really amazing to see Sharekhan having links with more than half a dozen banks for money transfer. With Sharekhan I feel pretty safe of my holdings in their DP account. May be Sharekhan would come out with a nice brokerage plans for intraday traders, Their customer service is excellent. If there is any deviation in their service, they would inform you at least one day in advance. I had one experience of them informing me about the 2 day delay in crediting the shares of a company into my DP account. This kind of service would ensure that we do not have to worry about any wrong doings with our DP account. I suggest Sharekhan account to all those ocassional traders with or without any knowledge about stock markets.

An Overview on Share Market & Share Trading

---

Share market 
Share market is a very common term in today’s world .

What is that attracts people to share market?  or  Is it just the profit margin or anything else?

Let's have a close look over share market......

What is share market?

In simple words it’s the place to buy & sell shares.

Now one might come with the question what is share?

Shares are the single unit of stock. Then what is stock ?
Stock is the capital raised by a company through the issue of shares.

Shares are of 2 types

1. Ordinary Shares - it not only gives the shareholder the right to profit but also the right to vote. 
2. Primary Shares - it give the shareholder only the fixed income.

Let’s have a simple look at how the share market or stock market works?

Image Source

Who are brokers? 

Brokers are the individuals or institutions who are certified to participate in the security market & execute the deal on-behalf of their client & earn commission for it.

If an Investor wants to sell his shares. He will pass on this information to his broker and ultimately to stock exchange. Stock exchange will make trade electronically.

Image Source

This is the simple way how share market works.

If we closely follow share market/stock market we will often come across with the terms like “bull market” or “bear market”.

What is “bull market” or “bear market”?

A "bull market" is a period when stock prices are generally rising. In order to have a bull market a strong & consistent economic growth is must. There are more buyers than sellers.

A ”bear market” is a period when stock prices are generally falling on the whole. Economic recession can definitely lead to a bear market. it has been observe that after every bear market phase, there is a renewed buying interest.

Difference between Trader and Investor

---

Trader

Buying and selling of shares based on technical analysis or market trend taking into consideration very short duration like from a single day to couple of days is called trader.

Mostly trading is done throughout the day and what is called as day trading or intraday trading.

Trader buys and sells the stock and he is not worried about the company's performance or how good the company is.

Investor

Buying shares after analyzing the fundamentals of the company and holding them for long term like from couple of months to couple of years is called as Investor.

Investor buys a company only after analyzing its worth.

If the current stock price is available at discount (undervalued) then he buys it for long term prospective.

How to Open a Demat Account

---

How to open a Demat account?

You have to approach a Depository Participant (DP) to open a Demat account.

Most banks are Depository Participant  participants so you can approach them or else you can contact share trading agencies

To have latest list of registered Depository Participant  please visit websites www.nsdl.co.in and www.cdslindia.com

A broker and a Depository Participant  are two different people.

A broker is a member of the stock exchange, who buys and sells shares on his behalf and also on behalf of his customers.

A broker can also be a Depository Participant .

Following are the documents required to open Demat account

When you approach any Depository Participant , you will be guided through the formalities for opening a demat account.

TheDepository Participant  will ask to provide some documents as proof of your identity and address.

Below are the list of documents out of which you have to submit one or two.

PAN card, Voter's ID, Passport, Ration card, Driver's license,

Photo credit card Employee ID card, IT returns, Electricity/ Landline phone bill etc.

Do you need any shares to open a Demat account?

NO. You need not have to have any shares to open a demat account.

A demat account can be opened with no balance of shares.

And also there is no restriction to maintain any minimum shares. You can have a zero balance (shares) in your account.

How much it cost to open a Demat account?

The charges for demat account opening varies from broker to broker of from Depository Participant  to Depository Participant .

Generally some broker charge one time account opening fees but currently due to high competition they are offering free account.

To have latest charges please visit websites of www.nsdl.co.in and www.cdslindia.com or else you need to contact the specific broker.

Finally after successfully opening the demat account you are ready to do buying and selling of shares in share market exchanges like BSE and NSE.

Important points to remember while opening online demat account

• Do multiple enquiries with various brokers or Depository Participant 's and try getting low brokerage charges.

• Also discuss about the margin they provide for day trading.

•  Discuss about fund transfer facility. The fund transfer should be reliable and easy. Fund transfer from your bank account to trading account and fund payout from your trading account back to your bank savings account.

Some online share trading account has integrated savings account which makes easy for you to transfer funds from your saving account to trading account.

•  Very important is about service they provide, the research calls, intraday or daily trading tips.

•  Also enquire about their services charges and any other hidden fees if any.

• Check how reliable and easy is to contact them in case of any emergency, like buying and selling of shares on immediate basis or in case of any technical or other problems at your side while trading yourself.

• You can also request to broker for demonstration of the trading terminal software and check how comfortable it is for you.

There are various brokers and Depository Participant , please contact us for more information of brokers.

Trading in Stock Exchange

---

Share Trading in India is done through Stock Exchange, There are 2 stock exchanges in India

1. Bombay Stock Exchange
2. National Stock Exchange

Bombay Stock Exchange (BSE)

• It started in the year 1875 
• Its is 134 yrs old 
• 7500 + company's in that 4900 company 's are in active for trading shares in the market 
• A-Z Groups stocks are there in these exchange. 
• It is known as sensex,  sensex means sensitive index of BSE in this top 30 company are listed and 17000 +500 points it will bw up or down for every Second.

National Stock Exchange (NSE / NIFTY)

• It started in the year 1995. 
• 1800+company's are listed it is the first exchange to introduce online facilities (VESAT) i.e. through satellite. 
• It is also known as NIFTY.
• Fundamentally Strong 
• If you want to start NSE you must have 5-7 years experience or 3 years with high profit of 50 crores. 
• There are 23 sectors in NSE i.e. IT, PHARMA, Banking,Cement Oil and FMCG. 
• Top 50 companies are in NSE.

Types of Share Trading Accounts

---

TRADING ACCOUNT

Trade is the buying and selling of shares

The ways of buying and selling the shares are through (IPO'S TRANSACTIONS)

To invest in share one must have a trading account

• Trading account is the Linker between Bank account and a Demat account

• Cash transaction can be done through trading account, (from Bank account to trading account and from trading account back to bank account).

• Delivery instruction slip can be obtained Online / offline

DEMAT ACCOUNT

Demat is known as dematerialisation account, and it is maintained in an electronic form of holding the shares. Demat account started because to make things faster.

Exchange / broker

Before dematerialization, shares are maintained as paper certificates the problem with that was its lost easily and loss due to communication problems.

UNIQUE ACCOUNT

Unique a/c is nothing but a savings account

Demat account can be opened n number of times but it must be multiple accounts in same company i.e. primary holder, 2nd applicant 3rd applicant and demat is only for shares.

BANK ACCOUNT

A bank account is a financial account between a bank customer and a financial institution. A bank account can be a deposit account, a credit card, or any other type of account offered by a financial institution.