Benefits Associated with Online Trading Account
Physical certificates of shares involved many difficulties and risks. In earlier days, incidents like theft, forgery, loss in fire, counterfeiting, failure in delivery due to mismatch of signature, postal delays were very common among traders. These risks made the task of trading very uncertain. But the dematerialization has not only cancelled the risks involved with physical shares, but has made online trading a highly rewarding platform of growth and prosperity for the investors.
Some other benefits involved in Online Trading Account:-
- The trader need not be present physically at the exchange, but can work from anywhere with an internet connection.
- The trader is provided with an up-to-date and precise platform, and hence gets the stock market charts, live updates, alerts, stock market news, or in short the complete market analysis on a single screen.
- The investor saves stamp duty with online trading, whereas in physical shares it came up to about 0.5% per entity.
- Liquidity and acceptability of shares increases because of faster payment in online trading.
- Bulk traders are at a high advantage since the commission amount decreases with the increase in the amount of shares.
- Faster execution helps the day traders in swing trading. They even get to use the cutting edge trading tools due to the complete automatic process, which gives them the confidence to invest in different kinds of securities.
- A broker helps the trader with decisions regarding a stock, and also facilitates the transaction. Real time trading offers a high level of security to the stocks, and hence the peace of mind to the trader.