Online trading has been around for quite some time now. However, recently there is a sudden rise in the trading volume, especially after the Covid-19 pandemic. People started working from home and it gave them extra time to think over investments like cryptocurrency and stock market trading. Also, with the rise of new trading platforms, investors were able to start trading without a huge investment. The trading platforms not only started offering free demat accounts to them but were also considerate when it comes to offering reducing brokerage. All these reasons contributed to the growth in online trading. Here are few benefits of online trading:
Easy account opening process
The online demat account opening process allows you to sign-up with an online trading platform without any issues. Also, as the trading account is integrated with the demat account, you don’t have to follow two separate procedures to start investing online.
Trading at your will
With the availability of online trading platforms, you no longer have to rely on the assistance of brokers for trading. Selling, purchasing, and transferring stocks are at your fingertips now. Online trading platforms can be managed through laptops, mobile, and other digital devices. Therefore, you can analyze the stock prices and trade whenever you have free time.
User-friendly
An online trading platform has a user-friendly design so that anyone who has a basic knowledge of computers can understand the procedures. You can view the charts, find the stocks of your preference, and view the technical details and fundamentals of stock within seconds. These platforms also inform you about the latest events and happenings concerning a specific stock. Also, there are digital apps that provide the latest news and events of the stock market. All of this has made trading easy and encouraged people to trade without any comprehension.
Online trading is also very quick and enables you to complete the transactions in real-time. You also learn whether you have made a profit or loss on a particular day by viewing the profit and loss statement.
Flexibility
When it comes to market-linked investment, it is essential that you diversify your investment portfolio by investing in different instruments. Some of your capital can be allocated to stocks whereas the remaining can go into mutual funds, forex trading, Futures & Options, etc. An online demat account provides you the flexibility of investing in multiple market segments as per your wish. This flexibility cannot be provided by offline trading. As a result, online trading is the first preference of investors who want to explore all the investment opportunities in the market.
Benefitting from the fluctuating market conditions
Ideally, investing in market-linked instruments for a long period is considered to boost your profits. However, in the current situation, the market is witnessing ups and downs frequently. This uncertainty gives you an opportunity to capitalise on the changes in the market and earn huge profits in a short period.
The online trading platform lets you know about the updates in the stock prices in real-time. As a result, you can invest in a particular stock when the prices are low and wait for the price to go up to a particular price point before selling. The online platforms even allow you to set triggers to sell and purchase stocks when they reach a particular price point. All this enables you to earn surplus profit through short-term investments. The stocks with strong fundamentals can be selected for long-term investment.
The above factors play a huge role in increasing the demand for online trading. However, it does not mean that you can invest in the market without researching different instruments and their features. It is recommended that you get a complete idea about the market volatility, terms of usage, and brokerage charges before investing through an online trading account.
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