The investing industry most especially the one in India has undergone a tremendous transformation in the recent years. Such conventional ways of order executing like ordering through a phone or by physically visiting the brokers for placing an order in stocks is absolutely ruling out a tradition. Investing today has really evolved through the process of technology where the investment can be made easier and more accessible than before. The most important development in the evolution of this particular industry is the use of open trading account online.
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Contents
Convenience and Accessibility
Flexibility is perhaps one of the biggest benefits an online trading account has over its conventional counterpart. Recent advanced technologies have removed the barriers whereby in the past you were limited to dealing with the broker during working hours, or trying to find time in your busy schedule to make those important investment choices. The advantages offered under this type of an online trading account allow the whole wide world of stock market trading at your beck and call at any single point in the day or any given solar day of the week.
At this level, it is possible that you always have the ability to decide on the investment that can be made. That way you can implement change in response to new market conditions, bring on opportunities as they appear and review your portfolio when you want to. Here lies the much-needed freedom cherished by many Indian investors to manage their investment activities side by side to the professional and personal obligations.
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Cost-Effectiveness
The first and one of the most compelling reasons that should make people consider opening an account for online trading is the fact that the brokerage charges are usually lower than in most other forms of trading. Earlier, the investors had no other choice than calling full-service brokers who demanded large fees on any trades they performed for the investors. These fees also meant that it was also therefore possible to end up losing all the profits made in a day through trading if you were an active trader.
Currently, most of the online brokers in India charge a flat fee or a minimal percentage basis for their trades. This is because such costs are relatively cheaper especially to the retail investors who may not be in a position to fund huge amounts of equity. They compared it to low cost, implying that lower fees will mean more of your money is reinvested back into your portfolio which may offer greater returns in the long run. For instance, if you are putting your money in small lots frequently, the saving on commission cost could accumulate to a good percentage of your portfolio size over the periods and therefore make a lot of difference.
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Speed and Efficiency
This is the beauty that accompanies the taking of stocks – the faster one gets this right, the better the position that one is likely to have over other people. One of the most attractive benefits that come with the use of the online trading accounts has to do with speed when placing the orders. Most if not all the trading through purchases or sales can be done in mere few clicks or taps on a screen. This rapid execution is a far cry from having to dial a broker, make your order and wait for confirmation which could take minutes or even hours.
The speed of online trading is of most essence more so when there are fluctuations in the market whereby the stocks’ prices may go up or down. Timing is very important in investment and by this it means that being able to immediately react to your decision of trading can be between making a gain or losing a stock. It is here that one will find something of value to the day trader or anyone who seeks to take profit from short-term trends.
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Greater Control and Transparency
Undoubtedly, one of the most useful features of having an online account for trading is that it places the power directly in the trader’s hands. As compared to conventional methods whereby you perhaps unusually depend on the broker or you may not have adequate information regarding your portfolio, here you are in charge. This means, for example, that you can make decisions on what stocks to buy and where to invest your money and when to buy or sell these stocks without others’ interference.
This direct management facilitates better control of the investments or rather better personalized investment approach. If you want to invest in specific industries, in companies you can support or avoid because of your principles or preferences, you are free to do this, and change the composition of your portfolio according to your needs or observed tendencies.
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Diverse Investment Options
Another interesting feature of online trading accounts has to do with the opportunities for investment given regarding the available products. The days are long gone when you used to have a few local scripts or most mutual funds as major investment options. This implies that with an online trading account one is able to trade in a myriad of financial instruments across different markets under one roof.
Therefore today’s online brokers in India are not only providing the investors a chance to invest in the Indian market like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) but also the international Market. This also means that an individual is in a position to invest in companies without considering the geographical aspect of the companies and this diversifies his/her portfolio across various economies and currencies. For example if your interests are restricted to some ordinary American blue chip stock, or high risk emerging market mutual funds or even physical commodities like Gold, then an online trading account will assist you in all these and many more ways to invest.
Conclusion
With the emergence of online Trading Account, people and in particular the people of India have been given a new way of participating in the stock markets. This is the ease of trading at any time from any place. On the other hand the cost factors are another strong advantage in that more of your money is working. Most of the online trading activities are faster and this enables one to take advantage of opportunities than the manual method of trading.
