Study Of Online Trading System In India

Online trading or ‘eTrading’ has recently become very popular among retail investors, especially youths. Online trading is buying and selling stocks and other financial instruments via an electronic mode. The two depositories, National Securities Depositories Ltd (NSDL) and Central Securities Depositories Ltd (CDSL) hold your financial securities in an electronic form. They facilitate trading in stock exchanges by providing an electronic format and safekeeping. Investors compulsorily engage in share trading online via the registered Depository Participants agents of these depositories. 

As per The Securities and Exchange Board of India’s (SEBI) annual report – the active participation of individual investors in the stock exchanges crossed 1.2 crores in 2022. This expanded beyond metros or big cities.

The number of active dematerialized (Demat) accounts in the country jumped 63% in the past year to more than one crore in the financial year.

During the last two years of Covid 19 pandemic, India’s retail trading boom has been influenced by pandemic-driven lockdowns that left millions of people at home to explore new areas like share trading. This excess time added to the rise in a social media interaction on social media channels from experts and influencers and the growth in best trading apps in India has attracted many people into online trading. 

Benefits of Online Trading

  • Organized trading process: As online trading is fully digital, the trading process is well organized and very convenient. 
  • No middlemen required: Online trading can be done by an individual without any intermediary by understanding the market and doing one’s research before investing online.  
  • No paperwork: There is no paperwork involved in online trading which is otherwise a very tedious process to give paper orders. 
  • Low Errors: Broking firms use high-end technology to ensure the slightest security error during online trading. Even SEBI ensures all registered depository participants maintain error-free trading systems and any hitches and glitches have to be reported.
  • Fast processing and Execution: As broking firms keep upgrading their technology, the online trading process is fast and accurate.  
  • Low brokerage: Competition in Online trading has led to the lowering of commissions and brokerage rates over the last decade as a winning proposition for investors.

How to Start Online Trading in India?

Online trading is a simple process and easily doable by following a few steps. 

  • Choosing a stockbroker: One should be very careful while choosing a stockbroker and should always select a reputed and reliable broker. 
  • Open a Demat & Trading Account: The online mode of investing eliminates the hassles of interaction. All you need is an online Demat and trading account. One can place BUY and SELL orders along with various other features.

Different broking firms have different trading platforms and technology. One should understand it thoroughly before starting to trade.  

The popularity of trading apps

Currently, there are many trading apps available in the market. Online share trading apps have eased the process of investing across securities. One of the advantages of such apps is that they help customers to monitor the market in a better way than a manual mode and also allow you to explore other securities trading such as the best app for mutual funds on a common platform. Such trading apps are very convenient to place orders. Likewise, there are many mutual fund apps available in the market. One should be very careful while selecting such trading apps and should go through customer feedback and reviews before selecting one. 

An effective Online trading app ensures that the customers are aware of real-time data on shares and related products. It should notify customers about the latest updates in the live market.

Powerful Hidden Features In Stock Market Apps

An investor is a beginner or an expert, everyone needs information for successful trading. Trading apps have been a savior of investors in many senses. The features of stock market apps impact the return earned by investors. Every trading app provides features that help investors manage their portfolios with ease. What if many other features go unrecognized? Making the right use of these features creates better investment opportunities.


Online trading is the most convenient mode of trading. One can start an online investment journey after understanding the features and benefits of an online trading system. Selecting a reputed and trusted stock broking firm ensures safe and smooth trading.   

Leave a Reply

Your email address will not be published. Required fields are marked *

9 + fifteen =