Friday, 29 July 2011

Advantages Of Online Investing

By Fabio Luther


The share markets have always attracted traders who gravitate towards investments with higher returns. Even though the risk factor is high, the returns are comparatively greater than other investment avenues like debt instruments. Though it was really well-known with usual investors, a sizable component of our population didn't invest in it owing to it's seemingly complex nature. Add to that the long winded process of buying or selling stocks, it's no wonder that some investors kept away from it.

Investing in earlier times was a time-consuming, long-winded and a difficult-to-manage process since it employed an open-outcry system where one needed to personally visit the stock exchange to trade in the market.

Its just after the internet revolution that stock investing went online and some entered the share markets, thanks to a less difficult method of trading. Though the basic guidelines remain the same, the online system has attracted massive number of people towards it owing to it's convenience.

Now, one does not have to visit share exchanges or even their broker if they would like to buy or sell stocks. One can only log in to his/her investing account online and purchase and sell stocks from their account. One does not even include an intermediary in these transactions.

One other method to do so is by calling one's broker over the phone. The broker trades in stocks of one's choice on their behalf and with their permission. By doing this too, one does not have to worry about the safety of their stocks since they are closely deposited into their own Demat account.

Equities, mutual funds, derivatives, etc. are all stored in electronic form in a specialised Demat account. Stocks bought and sold are immediately credited to or debited from the Demat account. One will be able to also obtain physical certificate of their shares if requested from the broking house.

Investing online helps traders put orders or trade from their homes or workplace whenever they want. And with newer advancement in trading technology one could even place orders to purchase and/or sell stocks even after consistent trading hours. Online trading is especially helpful this way.

Trading is a great strategy to make money on a each day basis in the stock markets. Its not critical whether one trades in small amounts or massive, what's momentous is this one does it in an informed technique.




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