Trading can be offline or online in India. For offline trading, you must visit a stock exchange and place trades physically on paper. You can also partner with a middleman to place trades on your behalf. However, investors cannot visit NSE, BSE, and other stock exchanges regularly to place trades. They also fail to access Forex, commodities, and other financial markets to make investments. It is where an online trading platform comes into the picture. It allows investors to make investments in different markets without moving an inch. Continue reading to understand how to get started with digital trading in India.
Step 1: Apply for a Trading Cum Demat Account
For digital trading, an investment account is a must. An investment or trading account allows access to different markets with publicly traded securities. You can invest on popular stock exchanges like BSE and NSE with an investment account. Besides buying, selling securities is also supported via a trading account. You will also need a Demat account to hold securities for any period. For instance, you can hold shares of a company for years in a Demat account for capital appreciation.
To apply for Demat and trading accounts, one must search for a reputed stockbroker. You can also rely on a depository participant, but it will only offer you a Demat account. On the other hand, stockbrokers can also offer digital investment platforms. You can apply for an online trading account on the official website of a stockbroker. You can trust Religare Broking for opening Demat and trading accounts online for free.
Step 2: Complete the KYC Process and Receive Account Details
After you apply for trading and Demat accounts, the stockbroker needs to confirm your identity and other details. For the same rationale, it will ask you to submit KYC documents, including a PAN card, address proof, and a cancelled cheque. Once your identity, address, and bank details are verified, you will receive account credentials. You will be authorised to make trades in India. Don’t forget to choose an investment platform for informed decision-making.
Step 3: Know the Types of Trading
You must be familiar with different trading techniques to succeed in your digital trading venture. You can become a day trader by buying and selling securities on the same day. You can also choose to take long-term positions in the stock market for capital appreciation. Many investors indulge in future and option trading to earn high returns. Choose your trading techniques before making investments.
Step 4: Harness the Power of Virtual Trading
Before investing real money, you can try the virtual trading feature. A reliable investment platform will allow you to trade virtual money and test the market. Once you have formed effective trading strategies, you can invest real money.
Step 5: Build a Diverse Portfolio
Investing is an art, and you need to follow the right tricks. The best way to avoid risks is to build a diverse portfolio with proper asset allocation. Invest in stocks, bonds, currencies, and other securities to minimise your risks.
In a Nutshell
You don’t have to invest a huge amount to get started with digital trading in India. Retail investors can open trading accounts for free and start making small investments. As you learn the tricks of the trade, you can make large investments. Start your digital trading journey now!