how to buy shares online in india without broker:
how to buy shares online in india without broker ?. if you have the same quetion in your mind, then you are at right palce, we are going to discuss about how to buy shares online in india without broker . Gone are the days when trader or investor call the stock broker and place the trades in his/her account. In today’s era technology made all things very easy and handy whether purchasing clothes, groceries, medicines online or similarly if you want to trade online then there are many brokers in India who are providing online facility to trade in the market just sitting at your home or you can put trades through your android mobile wherever you go. in this article we are going to discuss about how to buy shares without broker and how to open demat account online.
By placing trades online you are not just saving your time but also saving your cost too. Suppose for example, if you want to buy Reliance @ 1000 by the time you call your stock broker to place your buy order it might possible that Reliance move 2 or 3 points up, this is your opportunity lost but on the contrary side if you place order online through your desktop or mobile you can earn this 3 point move which is a extra bucks for you. So, all in all if you want to time the market then you need to know how to buy shares online.
You can not only buy shares online, infect you can buy mutual funds, insurance, other investment products online by a single mouse of click. You can also find lots of information on stock for buy and sell online for free of cost, you can find free of cost research reports which will help you in selecting the stocks for trading and investing.
if you thinking that how to buy shares online in india without broker., you need a trading platform which is provided by any online share broker company. apart from that there is one more facility which is called web based trading terminal. In this you just need to login through the brokers website interface, once you login with your id and password, you are now ready to access the web based trading platform. The main advantage of using this platform is that you don’t need to install the trading terminal on your desktop.
Earlier brokers were charging high commissions due to non-competitive environment and lack of knowledge, lots of middlemen exists between the client and broker. But, nowadays you can take the service of discount brokers and take advantage of less brokerage and online facility to trade at your own ease.
how to buy shares online in india without broker?
Before I proceed further on how to buy shares online there is some process in between which to complete before going online. First, you need to select a broker through which you want to start stock trading. We advised to select only discount brokers as their charges are less and they offer very user friendly software to trade with. Take trading as a business; you have to save your cost so that you can expand your profit margin. Remember a penny saved is equal to penny earned, so choose a discount broker. Now, after choosing the broker you need to open the trading account and demat account.
- What is Trading account? It is a type of account in which you can buy or sell and hold shares. you are the only authorized person who can access this account.
- What is Demat account? In earlier times shares or securities are held by the investor in physical form, means, a share certificate. But, nowadays for keeping the shares you need a demat account; it is like a bank account where you can safely keep your shares for many years. A demat account is necessary if you want buy sell shares online or offline, a demat account is opened through a registered stock broker which is any discount or full time conventional broker. Other advantages of having demat account is that you will get bonus or right issue shares if any into your demat account, it also prevents you from the loss due to fire, theft or mutilation.
OPEN ONLINE BANK ACCOUNT:
The next step is to open online bank account which facilitates instant transfer of fund from your bank account to trading account and same process at the time of withdrawal. These days there are many private banks who offer 2-in-I facility, means you can open bank account along with trading and demat account in the same bank. It will make your process much faster.
Once you opened your trading and demat account then the only thing left is to transfer the funds into your trading account.\
PROCESSOR OF BUYING STOCKS ONLINE:
Once your trading account is ready you can click on F1 button and buy the stock, for selling the stock you need to press F2. Now the stocks can be bought and sold by a single click. In India trading starts from 9:15 am to 3:30 pm. Brokers also provides you back office from where you can see your stocks holding, once you will be in profit you can see that stock from your trading account and back office of broker will take the shares from your demat account automatically, you need not to worry about settlement of the trades.
HOW TO SELECT STOCKS FOR TRADING?
There are two ways by which you can select stocks, these are stated below:
- By the help of Technical Analysis
- By the help of Fundamental Analysis
Technical Analysis is the study of past price movements, some chart patterns, support and resistance through which you can evaluate the right stock to enter at the right time. In this you learn several indicators, moving averages and other trading strategies, if you apply these then you can earn a very good return from the stocks.
Fundamental Analysis is tool of checking the financial status of the company. Like you can use financial ratio PE ratio, EBIT, EPS etc. They will give you the overall financial picture of stock, you must also get to know what is the cash in hand with the company, is company is loaded with debt or it is debt free.
point that keep in mind while buying selling shares online – how to sell and buy shares online in india:
– make your transaction otp protected. it mean when do any payment for buying share. it should give an otp sms to byour registered mobile before completing the transaction.
– your online trading account password be strong. it should be made up by combination of small letter, capital letters and numbers.
– if you using public computer like office laptop, syber caffe computer, then you should remove all history and password after doing online buying or selling of shares.
– keep track on ups and down on shares that you want to buy. you should study the history of share, how it move from last year, what is high rise point and down point. so that , you can take desition for buying share from your online demate account.
– yo become successful in share market, you have to keep himseft updated about the each and everything about that share. whether it is its merger news, or getting new project and any other. as you know, this types of news also effect the prices of shares.
– the long tern objective of company also effect the price of share that effect buying and selling desition of buyers.
for example: if company goal is to expand the business and increasing customer satisfaction, then profitability factor will be less in comparison to a company whose objective is to increase profit.
how to open demat account online in india:
Question1:- What is demat account and for what purpose it is necessary ?
Answer:- Demat account is necessary for keeping shares and securities in digital form , here the term digital form means a person does not need any paper or physical document of shares and securities for buying and selling of any securities or stocks. In other word we can say that without opening demat account no one can do transaction in stock market.
Question2:- opening of demat account ?
Answer:- A demat account is opened by depository participant (DP). Depository participants are those who get registered through NSDL and CSDL, keep in mind that open an account with only registered DP. The list of registered DP is easily available at NSDL OR CSDL website. Or the registered broker also have tie up with different DP so a broker also help in opening demat account. And some bank are also provide facility of opening demat account usually it will take minimum 2-3 or maximum 5 working days to open a demat account.
Question3:- charges of opening demat account ?
Answer:- Basically it is totally depend upon the DP or bank how much they charge but there is much chances that most of the DPs does not charge for first year and after that nominal maintenance and transaction fee will be charged by NSDL or CSDL on yearly bases.
Question:4- the term depository refers to ?
Answer:- We can say that an institution that work like bank is a depository. In other word we can say that a depository act as a bank which hold securities i.e. (shares,debentures,mutual fund etc) of investor in an digital form .
Question:5-The term Dematerialisation mean?
Answer :-The term Dematerialisation refers to conversion of physical certificate of securities into digital form and credited that digital conversion to DP account of the physical certificate holder.
Question6:- Document required for opening a demat account ?
Answer : A person who wants to open an demat account then they need some document they are
- A address proof e. (voter id card, passport, rashan card, driving license)
- A bank account and copy of front page of bank passbook in which name of that person clearly mentioned with 6 month bank statement.
- Pan card
- A cancel cheque .
Question7:-Rematerialisation refers to ?
Answer – conversion of digital form securities to physical form is known as Rematerialisation.
Question8. How much minimum balance requirement of a demat account?
Answer :- there is no rule regarding minimum balance requirement in demat account.
Question9:-Registered depository of India?
Answer :- Currently there are two registered depository in India
- National Security Depository limited (NSDL)
- Central Depository Services Ltd (CSDL)
Question10:- Benefit of digitization of securities ?
- It is easy and safe to hold securities in digital form.
- Easy and quick transferal of securities
- Remove risk of damage of physical certificate, thefts, forgery.
- Low transaction cost.
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