Indian Online Stock Market Trading

How to Trade online BSE & NSE in India?

Shares (also known as stocks, equity) can be traded in stock exchanges. India has 2 big stock exchanges

[1] Bombay Stock Exchange (BSE)

[2] National Stock Exchange (NSE)

There are few small stock exchanges like Cochin Stock exchange, Jaipur Stock exchange etc. An Investor can trade shares (stocks) in any of the stock exchange in India.

Why we need Stock Broker?

As an Investor, he needs to have a Stock Broker to buy and sell shares in stock exchanges (like BSE or NSE etc), he cannot deal directly with a stock exchange. A Stock Broker is a registered member of stock exchange. Stock Brokers can register to one or more stock exchanges. Only stock brokers are allowed to buy and sell shares in a Stock Market. Investor should contact a stock broker to trade stocks. Brokers have charges to carrying out this trading on behalf of the investor (brokerages / commission). Brokerage is usually a certain percent of the total amount of trade and it varies from broker to broker. (List of Online Trading Brokers in India can be found in this Link)

Some History of Stock Trading

In early days share trading was done through stock brokers, personally or calling them through telephones. Due to the number of people trading in stock markets increased enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc. started to grow in stock broker offices. With Internet, Information Technology and computers, Stock market software were developed to help stock brokers in solving these problems.

Trading thru Internet

Online stock market trading is an internet based stock trading facility. An investor can trade shares through a website or through a software installed in his computer, without any manual intervention with the Stock Broker. All of the orders to Buy or Sell shares are routed through the Stock Broker before it reaches the stock exchanges. The software program filters all of the screening like checking for sufficient funds available in investor account or whether it is a tradable stock etc. before forwarding this order to stock exchange. Mostly online trading in India is done for trades in NSE and BSE.

2 Types of Trading

There are two different kinds of online trading environment :

[1] Installable software on Investor computer - Acts as a Trading terminal

[2] Web based (internet based) stock trading application

Investors can trade shares or derivatives in India through online trading facility.

With the introduction of Online trading, anyone can trade shares from anywhere with an internet connection and a computer.