Want part-ownership in esteemed companies like Reliance, TCS, or HDFC Bank and boost your wealth? These days, more than ever, you may buy stocks online from the convenience of your house by using your laptop or smartphone. This is a simple road map to get you going.
Why Should Someone Buy Stocks?
Buying stocks essentially results in a small ownership portion in a company, therefore rendering you a shareholder. Should the business expand, the value of your stocks will probably rise.
Stocks can also pay dividends, therefore giving you a consistent revenue source. You may also sell your investments whenever you want to realize either minimal losses or gains.
India Online Stock Purchase Guide: Methodical Approach
1. Open a trading and demat account.
Starting with two accounts is necessary.
- Digital representation of your stocks is kept in a demat account.
- Trading accounts let you purchase and sell stocks.
One can open both accounts using agents like:
- Zerodha
- Upstream
- Alpha One
- Direct ICICI
- HDFC Funds
2. Finish Your Know-Your-Customer KYC
For proof, you must post the following papers online:
- PAN card
- Aadhaar Cards
- Bank information
- Signature and picture
Usually, verification needs 24 to 48 hours.
3. Log onto the website or app.
Visit the app or website of your selected broker after your accounts are set up. Look for the stock you want to purchase, say Infosys or SBI.
4. Click “Buy” to place an order.
You now need to enter:
- Share count you wish to buy
- The kind of order (limit or market)?
- Check the setup.
5. Sort Through Your Portfolio.
Your stocks will show in your Demat account after the order is finished. Congratulations; you are now the owner of proud shares!
Types of Online Purchase Orders
- Market Order: Purchase the shares straight away at the going rate in the market.
- Limit Order: Purchase the shares just when the price falls to a pre-selected level.
- Stop-Loss Order: Automatically sell the stock if its price falls below a designated level to help to reduce any losses.
Lowest Beginning Value
There is no minimum requirement for purchasing of stocks. Starting with as low as ₹100 to ₹500, or even purchase one firm share.
Is Online Stock Purchase Safe?
Indeed, buying stocks online under SEBI-registered brokers is very secure. For increased security, though, always turn on two-factor authentication for your account.
- Steer clear of trading on public Wi-Fi.
- Never disclose your trade qualifications.
Understanding Tax Policies
- Short-Term Capital Gains Tax: 15% on gains from equities kept for one year or less.
- Long-Term Capital Gains Tax: Ten percent on gains above ₹1 lakh from equities kept for more than one year.
- Enter your income tax return’s (ITR) gains and losses.
Suggestions Before Starting
- Steer clear of basing your selections on hazy stock recommendations gleaned from social media.
- Beginning with well-known, steady businesses.
- Starting day trading should not be done.
- Although you should check your finances often, try to avoid acting emotionally.
- Invest steadily; keep in mind that investing is a road trip.
Finally
All you need to buy stocks online is a Demat and Trading account run under a reputable broker. Beginning users may utilize the straightforward, quick, paperless method. Start with little amounts, be steady, and progressively you will gain confidence as an investor.