With the advancement in technology, there is hardly any activity that couldn’t be processed through laptops/smartphones. Luckily, trading isn’t an exception. Online trading can be defined as an act of purchasing and selling stocks, mutual funds, futures, and bonds through online modes. Ever since this latest mode of stock trading emerged, it continued to gain immense popularity in India. Why not? The wide range of features and interesting benefits make online trading portals the perfect platform for stock traders.
By now, you might have known how easy and convenient online trading is. Besides being an easy trading portal, online trading is known for allowing people to stay up-to-date with the latest stock information. But do you know what specific feature of this form of advanced trading mode has caught the eyes of the investors? Well, it’s definitely the economical nature of this trading. Yes, you read it right! There can’t be a cheaper or a more economical way of purchasing and selling your stocks than trading them through your online trading account. Are you ready to face reality? Read on this post to know how online trading is far better and cheaper than the offline stock trading mode.
- Eliminates Middlemen
One of the most challenging and expensive parts of stock trading has been the middlemen’s commission. Fret not! Online trading doesn’t call for a middleman, in fact, the individual is allowed to buy and sell his shares without taking the assistance of a broker. Now users can save the money, which they would earlier spend on the broker’s commission. Not only it is economical, but online trading allows you to enjoy a hassle-free trading process. It helps you understand the trading process and make you financially smarter to take better investment decisions.
- Low Broker Charges
If you compare the brokerage fee charged by online brokers with the same as an offline broker, you will notice a huge difference in the prices. Offline trading is not limited to recruiting a broker, but it involves the set up of a branch and qualified staff recruitment for smoother operations. This entire set-up and recruitment can turn out to be super expensive. In online mode, you only need to create your trading account that requires reasonable maintenance charges. As there is a minimal set-up requirement, the broker will charge you a decent amount. In short, you pay low broker commission when you opt for online stock trading.
- Low Transaction Fee
Another benefit of online trading is the low transaction fee. Every time a broker carries out the trading process at BSE, MCX, and NSE, he charges a certain amount of transaction fee. This transaction fee is applicable in multiple sectors such as commodities trading, mutual funds, futures, currency derivates, equities, and bonds. The transaction charges usually depend on the volume of your trade.
It is worth to note that you won’t completely get rid of this transaction fee as it is mandatory (no matter whether you opt for online or offline stock trading platforms). However, you may notice a reduction in the total transaction cost if you open an online trading account and manage to find a reliable broker.
- Quicker Earnings
As online servers are directly connected to the stock exchange, you can easily get the latest stock information. The faster you collect information, the sooner you process the transactions. This way, you can enjoy quick earnings.
More people are now opting for online trading and one of the main reasons behind this major shift is the economical nature of the same. So, why wait? Open your trading account and stop wasting money on stockbrokers, transaction fees, and etc.