Online Trading in India – Everything You Need to Know

Online trading in India is a relatively new concept, but it has quickly gained popularity. For anyone looking to make a living from online trading, there are a few things to keep in mind. This article will tell you everything that you need to know about online trading in India.

What is online trading?

In India, online trading refers to the process of buying and selling financial instruments through an online platform. This includes stocks, bonds, mutual funds, and other securities. Online trading platforms offer investors a convenient and affordable way to trade in financial markets.

There are many online trading platforms available in India, such as AngelBroking, Zerodha, 5Paisa, Upstox, and Sharekhan. These platforms allow investors to buy and sell securities in real-time. They also offer a variety of features and tools to help investors make informed trading decisions.

Online trading has become very popular in India in recent years. This is due to the many benefits it offers, such as convenience, affordability, and accessibility. Moreover, online trading platforms have made it easier for investors to trade in financial markets.

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How is online trading in India different from the rest of the world?

There are a few key ways in which online trading in India is different from the rest of the world.

First, the Indian market is much smaller and more localized than global markets. This means that there is less liquidity and higher spreads.

Additionally, Indian brokers tend to be much less regulated than their counterparts in other countries. This can make it more difficult to find a reputable broker, and it also means that there are more scams and frauds.

Finally, the Indian government has placed some restrictions on online trading, such as the limit on the amount of money that can be traded per day.

Is online trading different from regular trading?

There are a few key ways in which online trading is different from regular trading. One is that online trading generally requires a lower minimum account balance than regular trading. This is because online trading platforms have lower overhead costs than traditional brokerages.

Another difference is that online trading platforms offer more flexibility in terms of the types of orders that can be placed. For example, many online trading platforms allow for conditional orders, which are not typically available through regular brokerages.

Finally, online trading platforms often provide more detailed data and analytics than regular brokerages. This can give traders a better idea of where the market is heading and how to make the most profitable trades.

What are the charges in online share trading?

There are three main types of charges associated with online share trading: commission, transaction fees, and account fees.

Commission is a charge levied by the broker for each trade that is executed. The amount of commission charged will vary depending on the broker, but is typically a small percentage of the total trade value.

Transaction fees are charged by the exchange for each trade that is executed. These fees are generally much smaller than commissions, but can still add up if you are frequently trading.

Account fees are charged by the broker for maintaining your account. These fees can vary depending on the type of account you have and the services that you use.

Online Share Trading v/s Online Stock Trading

There is a common misconception that online share trading and online stock trading are the same thing. However, there is a big difference between the two. Online share trading is the process of buying and selling shares through an online broker. Online stock trading, on the other hand, is the process of buying and selling stocks through a stockbroker. Both have their own advantages and disadvantages.

Online share trading is more convenient as it can be done from the comfort of your own home. You don’t need to visit a broker’s office and can trade anytime, anywhere. It’s also cheaper as you don’t have to pay brokerage fees. However, the downside is that you won’t get personalized service and may not get the best prices for your trades.

Online stock trading gives you access to a wider range of stocks as you’re dealing with a stockbroker. They can also provide you with valuable advice and guidance. However, the downside is that it’s more expensive as you have to pay brokerage fees.

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How to start online share trading in India?

If you are a resident of India and wish to start trading in shares, you would need to follow the below steps:

1. Get a Demat account and a trading account opened with a SEBI registered broker

You would need to submit your KYC (Know Your Customer) documents such as identity proof, address proof, PAN card etc. to the broker. Once your account is opened and activated, you would be provided with a user ID and password which can be used to login to the broker’s trading platform.

2. Fund your trading account

Once your account is opened, you would need to deposit funds into it. This can be done via online banking or by depositing a cheque/DD.

3. Start trading!

Once you have funded your account, you can start trading in shares. You can place buy or sell orders on the broker’s trading platform.

Anyone can start online trading in India as long as they open an account with a registered broker. The process is similar to opening a bank account and the broker will need to know your KYC (Know Your Customer) details. Once the account is opened, you will need to fund it before you can start trading.

What are the benefits of online share trading?

There are many benefits to online share trading, including the ability to trade shares from the comfort of your own home, the ability to access real-time market information, and the ability to place orders instantly.

Online share trading also offers the opportunity to trade shares on a variety of different platforms, including major stock exchanges.

What are the risks of online share trading?

There are several risks associated with online share trading, including the potential for fraud, market manipulation, and the loss of money due to technical problems.

Fraud is a serious risk in any online activity, and share trading is no exception. There have been cases of people losing money to fraudulent brokers who promise high returns but then disappear with the investors’ money.

Market manipulation is another risk to be aware of. This is when someone tries to artificially influence the price of a stock by buying or selling a large number of shares. This can be done to try to make a quick profit or to drive the price down so they can buy the shares at a lower price.

Finally, there is the risk of losing money due to technical problems. This can happen if the trading platform goes down, or if there are errors in the prices that are displayed.

How to choose the right online share trading platform?

Choosing the right online share trading platform in India can be a daunting task, especially for first-time investors.

There are a number of factors to consider, such as fees, features, and user-friendliness. In this article, we will take a look at some of the most important factors to consider when choosing an online share trading platform in India.


One of the most important factors to consider when choosing an online share trading platform is fees. Make sure to compare the fees of different platforms before making a decision.


Another important factor to consider is the features offered by the platform. Some platforms offer more features than others. Choose a platform that offers the features you need.


The platform should be easy to use. It should have a user-friendly interface. Choose a platform that you feel comfortable using.

Customer support

The platform should have good customer support. This is important in case you have any problems using the platform.

These are some of the most important factors to consider when choosing an online share trading platform in India. Keep these factors in mind when making your decision.

How to make money from online share trading

If you’re looking to make money from online share trading, there are a few things you need to know. First, you need to find a reputable broker. There are a lot of brokerages out there, so it’s important to do your research and make sure you’re choosing one that’s right for you.

Once you’ve found a broker, you’ll need to open an account and deposit money into it. Then, you’ll be able to start buying and selling shares. When you buy shares, you’re essentially buying a piece of a company. You can make money from online share trading by buying shares of a company that you think will increase in value, and then selling them when the value goes up.

Of course, there’s always a risk involved in share trading. The value of shares can go down as well as up, so you could end up losing money if you’re not careful. However, if you do your research and invest wisely, you can make a lot of money from online share trading.

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All the best!

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Mani Karthik

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Mani Karthik

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I help business grow & scale. Have helped 15+ companies scale in US, Middle East and India.
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