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What are the Benefits of Online Trading

Demat account holders in India continue to increase rapidly every year. From 8.4 crore account holders in January 2022, the population of Indian demat account holders has gone up to 11 crores in January 2023. 

You can use your demat and trading account to invest in stocks, bonds, derivatives, currencies, etc. A portion of these account holders are also engaged in trading – the act of regularly buying and selling financial products. Physical trading was limited to a few players, but technology has made trading available to all.

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Benefits of Online Trading

Transactional ease: Online trading can be carried out in a smooth and uninterrupted manner. Processes like adding funds to the trading account, purchasing and sale of shares, reflecting the trade on the demat account, etc. get updated automatically. In online trading, these processes can be carried out with a few clicks.

Economic: Online and intraday trading charges are relatively cheaper as compared to the transaction value. Intraday charges are also lower than charges on delivery of equity. 

Informed decisions: Online trading platforms offer investment advice and insightful analytics that help traders to take the right trading decision. When you open a demat and trading account with a reputed full-service broker, you get portfolio management services, daily market reports, free tips, quarterly result analysis, news alerts and a lot more.

Multi-device presence: Online trading can be carried out across different devices. When you open a demat and trading account with a leading brokerage house, you can access the account through desktop, laptop, mobile and tablet. This is because these platforms offer internet and mobile application-based trading platforms.

Multiple access points: If you have an account with a leading full-service brokerage firm, you will get access to all leading stock exchanges in India. With a single trading account, you can trade in stocks, funds, derivatives, commodities, currencies, etc. The important exchanges where you can trade online are the Bombay Stock Exchange, National Stock Exchange, National Commodity and Derivatives Exchange and Multi-Commodity Exchange.

Easy to monitor: Online traders who use trading platforms find it easy to monitor their accounts and transactions. These can be accessed and monitored from anywhere in the world and at any time. Thus, in online trading, you are in complete control of your account without any dependency on service providers. In traditional trading, traders place their orders with brokers, who then place the order on their behalf. This leads to a time lag and even missed opportunities.

Transparent: The cost of the transaction is clearly provided by brokerage houses, complete with all the break-ups. A typical intraday sale involves various costs like brokerage, securities transaction tax, GST, SEBI charges, stamp duty and exchange transaction charges – generally in very minuscule percentages. You can expect brokerage houses to provide an online brokerage calculator tool where you can check the potential cost of a transaction even before carrying out the transaction. Based on the calculated results, you can decide whether to go ahead with the transaction.

Gain an understanding of the market: In traditional trading, the trader remains detached from the real-time happenings of the financial market. Online trading helps traders to get more updates on the financial market and their impact on their trading transactions. This happens due to the steady flow of information ensured by full-service brokers. Eventually, online traders can read and predict the market situations more accurately, and make more profit from their trades. 


The advent of technology has encapsulated online trading with features like high-speed transactions, real-time access to market information, 24X7 control over the account, cheaper transactions and much more. This has handed more advantages to the online trader than ever before. It is no surprise, therefore, that online trading and investment platforms are gaining wider acceptance and popularity among the masses.


Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account


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