It has been some time (more than a month now) since I am thinking of buying shares online but not getting enough courage to do it. BSE has lost more than 1000 points last week which is not helping me either 
Anyway I had talked to ICICI people and some other friends of how I can do online stock trading and they gave me option of either buying SIP's or buy Mutual Funds. Anyway from whatever I have known, here are few ways of doing online stock trading and buying stocks in India. There are many more ways which I will add in the article in a day or so. Don't forget to bookmark the article.
But first an advice - Investing and getting involved with the stock market is a good way to earn and make your money grow. Trading stocks can be a very profitable endeavor; however, it can also lead to big losses. It is always best to know what you are doing before investing and trading online. So here are a few steps on how to buy shares online.
- One easy way to buy shares is to get your self a broker. This way, the broker can buy shares for you on NSE and BSE. Here are a few brokers online: www.indiabulls.com, www.sharekhan.com, and www.indiainfoline.com.
- Choose from one of the many brokers available who represent you for fees. The broker you have chosen will then register you by getting your information and asking for permission or authorization to invest in India from the Reserve Bank of India (RBI) on your behalf. Make sure the broker is trustworthy and has good experience in the field.
- If the broker you have chosen is registered with the Securities and Exchange Board of India or SEBI for online trading, you will be provided a unique username and password which you can use to trade through the broker’s website.
- You can then buy any shares depending on the amount you have deposited in your account.
- You also have the option of providing your broker with the authority to purchase shares for you through a power of attorney.
Another way for you to buy shares online is through opening a share trading account with the ICICI(Many other banks also provide this). Here is how to buy shares through this process:
- Open an ICICIdirect e-Invest account. You can do this by filling in an application form. This one time application will also be used in opening an ICICIdirect Brokerage account as well as a Bank account and a single or multiple Demat accounts, depending on what is required. To get an application form, simply request an ICICIdirect representative to visit you by registering through their website. You can also visit ICICI Bank Branches or you can request a form through emailing helpdesk@ICICIdirect.com
- ICICIdirect offers execution capabilities on NSE or the National Stock Exchange of India Ltd. and with the BSE or the Stock Exchange of Mumbai.
- Once you have an account with ICICIdirect, simply log in to their website to start buying shares.
- To place a buy order, click on the BUY link. You will need to specify the following items in the spaces provided: exchange, stock, symbol and quantity. You can also specify your limit price and stop-loss trigger price.
- You will also have the option of disclosing to the market only a limited part of the quantity you wish to buy.
- You can specify the product Cash/Margin you wish to place the buy order.
- All orders that will be placed are considered GTD or Good Till Day, remaining valid only within the day and will be cancelled automatically if not executed by the end of the day.
- You will then have to confirm your request to transmit the order.
I have only cover the basics of some of the possible ways of doing online stock trading. There are many more options which I will cover gradually in coming articles. One Piece of very important advice - If you don't know what you are doing, than DON'T do it. Get the knowledge first and start at smaller scale than gradually increase it.
Some more articles which you may find interesting - What are the problems you face with Indian Credit Cards from Banks ? | What are the Different Types of Credit Card Indian Banks Offer
Links you may find interesting -
- How to make money with Indian Stock Market
- How to open an account with an Indian bank
- Study MBA and Work in Australia
- List of Free Websites for Online Dating in India
- How to make Online Reservation of Railway Tickets in India
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