In recent times, trading on stocks has become as simple as shopping online. An investor can do that sitting in a coffee shop using a smartphone. All it needs is a good internet connection, subscription to a 3-in-1 account, mobile banking application, and sufficient funds in the bank account.

Fortunately, all the hectic paperwork has come down to a single click or touch on the mobile screen. Many free and paid mobile and web applications and portals for trading are available on the internet.

Stock trading can be financially rewarding if done in the right way. Investing in the stock market involves riding the various ups and downs of the market. Since the introduction of online trading in India, investing has become convenient. Stock market trading is a great alternative when it comes to long-term wealth creation. Although, it might take a while for you to hone your skills.

Basics of Online Trading

Online trading involves the trading of securities through an online platform. Online trading portals facilitate the trading of various financial instruments such as equities, mutual funds, and commodities. Angel One offers Angel Speed Pro – an online trading platform that helps investors and traders to buy/sell stocks and other financial instruments.

How to Trade Online?

Open Demat and Trading Account:

To begin trading online you need to open an online trading account with an online broking firm. Angel One offers reliable Demat and trading accounts services with low maintenance cost and affordable brokerage. It is essential to choose a broker who is a registered member of all the stock exchanges and is certified by the SEBI.

Learn all the Stock Market Basics:

The stock market functions on the system of supply and demand. Learning to trade begins with gaining more knowledge about the share market investment. Keeping tabs on financial news and websites, listening to podcasts and taking up investing courses are all excellent ways to become an efficient investor.

Practice with an Online Stock Simulator:

Online stock trading simulators are a great way to learn online trading. Since it is a simulator, the losses you make would not affect you, hence you can learn trade without any fear.

Draft a plan:

While you trade, it is very important to think through your investment strategies. Decide in advance how much you are willing to invest in a particular company and set limits on the amount of loss you are willing to bear.

If you bear all these points in mind, online share trading will be an easy and profitable task for you. Practice is the key to successful online trading. Stock trading is a long-term investment and requires patience and perseverance.

It involves buying and selling of securities such as stocks, bonds, and other related financial instruments online. For this purpose, you will require a Demat account and a trading account. A Demat account acts as the common repository to store the purchased units of stocks whereas the trading account acts as the platform to buy and sell the share. A bank account is linked to the trading account to facilitate funding of trade.

The major benefit of online trading is that investors can seek the help of dedicated customer care in case of any clarifications or queries.

Is it Safe to Trade Online?

Trading online has helped traders trade faster and smarter using the online trading platform and mobile apps. However, the safety of online trading is a paramount concern for investors. While online trading platforms are generally secure, there are risks associated with it.

To enhance online trading safety:

  1. Choose Reputable Brokers: Select established, regulated brokerage firms that adhere to strict security protocols and provide investor protection.
  2. Secure Your Account: Use strong, unique passwords and enable two-factor authentication (2FA) to safeguard your trading account.
  3. Stay Informed: Educate yourself about trading risks, strategies, and market trends to make informed decisions.
  4. Beware of Scams: Be cautious of unsolicited offers, phishing emails, and fraudulent schemes promising guaranteed profits.
  5. Diversify: Spread your investments across different assets to mitigate risk
  6. Monitor Your Investments: Regularly review your portfolio, set stop-loss orders, and stay updated on market news.

Online trading can be safe when approached with caution and informed decision-making. Research, due diligence, and risk management are essential to minimise potential pitfalls and make online trading a valuable tool for growing your investments.

Benefits of Online Trading

Online trading offers the following benefits:

  1. Accessibility and Convenience: Online trading platforms provide 24/7 access to financial markets, allowing investors to trade from the comfort of their homes or on the go. With an online trading platform, you don’t need to visit the stock exchanges or brokerage offices, saving time and effort.
  2. Lower Costs: Online trading typically involves lower fees and commissions compared to traditional trading methods. Many online brokers offer competitive pricing structures and fee-free options for certain types of trades, reducing the overall cost of investing.
  3. Real-Time Information: Online trading platforms provide investors with instant access to real-time market data, charts, and research tools. This wealth of information enables traders to make informed decisions, analyse market trends, and execute trades swiftly.
  4. Greater Control: Online trading empowers investors with greater control over their portfolios. They can place orders, set limit prices, and adjust strategies in real-time, allowing for more agile and responsive trading. Additionally, it eliminates the need for intermediaries, putting investors in direct control of their investments.

Online Trading vs Offline Trading 

Aspect Online Trading Offline Trading
Accessibility Available 24/7 from anywhere with internet access Typically requires physical presence at a broker’s office or stock exchange during trading hours
Convenience Allows trading from the comfort of home or on the go Involves travel and time spent at a physical location
Cost Generally lower fees and commissions May involve higher brokerage fees and commissions
Real-Time Information Provides instant access to real-time market data, charts, and research tools Relies on delayed or periodic information updates
Control Offers greater control over trading decisions, allowing for real-time adjustments May require communication with a broker for order execution, potentially leading to delays
Speed of Execution Typically faster, with immediate order execution May have slower order execution due to intermediaries and communication lag
Research and Analysis Provides access to a wide range of research and analysis tools online May rely on broker-provided research or personal analysis
Intermediaries Fewer intermediaries, enabling direct market participation Involves brokers or agents as intermediaries for trade execution
Documentation Digital records and statements for easy tracking May involve physical paperwork and manual record-keeping
Risk of Human Error Lower risk of human error in order placement Slightly higher risk due to manual order entry
Flexibility Offers the flexibility to trade at any time, even after traditional trading hours Bound by stock exchange trading hours and broker availability
Personal Interaction Limited personal interaction, primarily digital Involves face-to-face interactions with brokers and fellow traders
Accessibility of Markets Provides access to a wide range of global markets Access may be limited to specific local or regional markets
Security Requires robust cybersecurity measures to protect accounts Relies on physical security at broker’s office
Market Education Offers numerous online resources and tutorials for self-education May provide in-person guidance and education through brokers
Market Orders Supports various order types, including limit, market, stop-loss, and more Order types may be limited, especially for retail traders

Things to Remember Before You Start Online Trading

Before you start online trading, it is good to keep the following points in mind:

  1. Educate Yourself: Don’t rush into online trading without a solid understanding of the functionalities of the stock market. Learn about strategies, market analysis, and different asset classes before you begin.
  2. Set Clear Goals and Risk Tolerance: Define your trading goals and risk tolerance level. Analysing your trading goals and risk tolerance will help you make informed decisions and avoid impulsive actions during market fluctuations.
  3. Choose a Reputable Broker: Selecting the right online brokerage is crucial. Research and compare different brokers to find one that suits your needs. Look for factors such as fees, available markets, customer support, and security features. Ensure the broker is regulated by relevant authorities to protect your investments.
  4. Practice with a Demo Account: Most online brokers offer demo accounts that allow you to practice with virtual money. Use this opportunity to familiarise yourself with the trading platform, test your strategies, and gain confidence before risking real capital.
  5. Implement Risk Management Strategies: Develop a trading plan that includes risk management rules and stick to them religiously. Set stop-loss and take-profit orders to limit potential losses and secure profits. Never invest more money than you can afford to lose.

Choose the Right Trading Platforms for Online Trading in India

India has a growing number of online trading platforms due to a rise in demand. These are the steps to follow to choose the right online trading platform in India:

  • The trading platform is simple and easy to understand and use
  • The brokerage fees are competitive 
  • The trading platform gives you access to all types of financial tools for trading: a suite of analytical charts and tools, margin trading facilities, etc.


What is the importance of online trading?

Online trading has made the stock market accessible to a large number of investors. It has brought transparency and speed to stock trading by providing the stock market at your fingertips. 

Can I trade on my mobile device?

Yes, stock broking firms like Angel One offer their trading platform on mobile devices that allow traders to trade from anywhere and even on the go. You can access our complete suite of tools on the Angel One mobile application.

What are the fees associated with online trading?

Depending on the stockbroker you’re associated with, you might have to pay fees such as brokerage fees, Securities Transaction Tax (STT), Exchange fees, SEBI Turnover fees, GST, etc.

How does online trading work?

Online trading involves opening an account with an online broker, funding it, and then using the broker’s trading platform to place buy and sell orders for various financial instruments. These orders are executed electronically on stock exchanges or other trading venues.

What are the risks associated with online trading?

Online trading carries inherent risks, like the potential for financial losses. Market volatility, unexpected events, and trading errors can impact investments. It’s essential to understand these risks and implement appropriate risk management strategies.