2. E-Trading
โThe process of conducting STOCK MARKET
TRANSACTIONS (buy and sell orders) using an
electronic platform that TRANSFERS the ORDERS to a
physical PERSON to COMPLETE. Electronic trading has
become a popular method due to its ability to
conducts transactions quickly and effectively.โ
3. Advantages
โข Easier and convenient way to own shares.
โข Immediate transfer.
โข Zero stamp duty on transfer of shares.
โข Safer than paper shares, e.g, fake
signature,delay,thefts,etc.
โข Lesser paperwork for transfer of securities.
โข Less transaction cost.
โข No โoddโ problems. Even a single share can be
sold
โข Automatic credit in demit accounts.
4. Disadvantages
โข Investors, who are trading for the first time, go with the
flow and get immersed in technology and actually
temporarily forget that they are actually using their real
money.
โข There is no relationship that of a mentor between a
professional broker and an online trading account holder,
thus leaving the investor on his own to make choices of the
right shares.
โข Users who are not familiar with the ins and outs of the
basics of brokerage software can make mistakes which can
prove to be a costly affair.
5. Process of E-Trading
Selection of a broker
Opening Demat Account
with Depository
Placing the Order
Executing the Order
Settlement
6. Real Life Examples
๏ ZERODHA:-Trading with Zerodha offers many
benefits like: Quick online account opening (using
Aadhar number) Brokerage free equity delivery and
mutual fund investment. Low brokerage fee Intraday
and F&O Trading (Max flat Rs 20 per executed order)
๏AngelOne
๏Upstox
๏ShareKhan
๏Kotak Securities
๏Indiabulls
๏Reliance Money
