Saturday, July 12, 2014

Online Trading Disadvantages - How to Choose a Best Stock Broking Company in India

What is online trading or internet trading?

Buying and selling transactions of shares stocks at stock exchanges with the brokerage websites portals through internet medium is called online trading or Internet trading.

Who are participating in Indian Share Stock Market?
  • Students
  • Business owners
  • Working employees
  • Moms from homes
  • Retired elders
  • and others...
Using electronic devices to share stock trading with internet
  • Desktop computers
  • Laptops
  • Mobile phones
  • Smartphones
  • Tablets
  • and other allowing access to internet.
What to search for a brokerage company - How to choose a brokerage services company

Finding and selecting a brokerage services company to open demat, trading account to invest into share stock market to earn profits, returns on investment, also to get tax saving benefits is not a tough job in current days.

Just you type in Google. See the search results. Intermediaries firms, financial institutes, financial advisory companies and various banking organizations are providing various long term short term money saving investment advices, tips on financial career planning, investment money security, happy retirement planning, available savings scheme, investment plans also on Indian share stock market information, share trading, stock trading, mutual funds, currency trading, bullion trading etc... These financial investment institutes will works along with participants of the primary markets.

How to pick a best brokerage services company in India

Choose a best online stockbroking company from various perspectives. Select based on consultation fee, commission prices, available investments, market trading and research tools, money market analysis tools and customer service etc. factors. These factors are very common for every financial brokerage service providing companies.

Online stock market trading brokerage services are highly competitive and unique from other financial services. For example, money investors generally don't trades several times in a day, so the transaction price is not a compulsory one to collect from clients (investors) for providing customer services. Online traders, day traders are highly prefers to make multiple trading transactions than long term investors. So for each transaction, collection of consultation fee is not a right one.

Here is a list of services and offering features such as offering demat account opening, trading account opening services, investments, fees, trade transaction commissions rates, trading investment tools details, resources to improve the share stock market knowledge, training etc...

Investments Offered
  • Stocks
  • Options
  • Mutual Funds
  • Exchange-Traded Funds
  • Retirement Accounts
  • Education Savings Plans
  • International Stock Exchange
Fees and Commissions
  • Financial advice
  • Broker-assisted orders
  • Market Trades
  • Limit trades
  • Options trades
  • Margin rates
  • Service fee
  • Documentation fee
  • Processing fee
  • Hidden charges
Trading and Investment Tools
  • Daily alerts
  • Level I quotes
  • Level II quotes
  • Automated trading
  • Charts and graphs
  • Criteria based search
  • Analyst research reports
  • Watch lists
  • Virtual trading
Resources
  • Beginning investor education
  • Demo trading
  • Seminars & live events
  • Webinars, workshops
  • Videos, DVDs
  • Tax information
  • Blogs
  • Magazines
  • Retirement resources
  • Newsletters
Help & Support
  • Telephone
  • SMS
  • Email
  • Forum
  • Live Chat
  • Website
Disadvantages of Online Stock Trading

Online trading is one of the best simple ways to earn high returns from share stock market. The primary and secondary money markets are always attracting a lot of investors and traders towards investment to gain higher returns profits with or without market investment risks.

Although share stocks' risk level from low to high, the market returns are relatively very higher than other saving investment opportunities in India. As the increase in high speed internet access, internet traders and online investors prefer to order to transactions (buy and sell of shares stocks) from their high-end electronic devices at home and workplace even from travelling hours. Trading online is the best source to acquire good returns and profits on invested money.

Disadvantages of Online Trading with Internet

No Efficient Advice

Share stock market traders and investors are needed to take care of insufficient middlemen advice. In 1990 to 2005 year the traditional brokerage service companies and financial institutes were firms provided money saving investment plans, financial health management tips, short term investments, long term savings schemes and financial business advice depending up on your economic situation, money protection sources that you won't identified in your surroundings. It might be you paid for ineffective and useless ideas and investing plans, non-resulting investment advices. Even nowadays you can get inefficient suggestions as you are paying for financial planning and money investment guidance.

Expensive

Though online stock trading and share trading are very much comfortable due to latest electronic gadgets having high speed internet access, you required to open a demat account and trading account. Financial firms are collecting fee to these accounts. Documentation fee, processing fee, consultation charges are cost effective for small to middle class families based investors. Every trading transaction is costs some predefined charges and collected by broking middlemen agencies, financial institutions...

Work at home or office

Computers, laptop and smartphones, tabs are with internet access are highly preferred for online stock trading. These electronic gadgets are helping the money marketers to internet trading and day trading, spot trading etc. But you required analyzing the share stock market position and shares, stock performance on every hour. At your home or working place, you required to have any computer or laptop or tablet or even smart mobile phone and with high speed internet access. Otherwise this can leads to investment loss due to inattentive stock trade. This can impact your money saving investment strategy.

High commissions charges

Stock brokers, middlemen financial agencies are nowadays charging somewhat high prices as commission for every trade transaction. Stock brokerage service providing firms are collecting various fee structures from all customers. So they offer somewhat low brokerage charges, the organizations are collecting various hidden fees from clients in the form of commissions. High commission is one of the main barriers to online trading.

Loss of invested money in minutes and hours

Indian share stock market trading is subjected to various kinds of market risks and investment risks. Money marketing is highly required to have wise investment strategy, educated decisions, and systemic financial discipline. Otherwise you will lose yours money invested in equity shares, stocks. Even you are well educated in academic studies; however you are beginner to share stock market to trade or invest. Due to the lack of awareness in money marketing, developing and implementing effective financial investment strategy, all traders and investors can lose money.  

No investment limit

Another main drawback of online share stock trading is that you are not restricted with any kind of financial investment limitations. You can start online trade in a chosen stock or share with money that you are planning to invest or trade depending up on your money marketing strategy that allows.

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Epic Research said...

This post will surely help the traders in identifying the loop-holes of online trading.