Online Trading refers to the act of selling and buying financial products using a trading platform. Bonds, Futures, Options, Stocks, etc., can be traded online and the trading platforms are typically hosted by online brokers. Hence, they can be availed of by anybody who wants to try and make financial gains from the market. Some of the important benefits of Online Trading include the following:
Convenience
Online Trading allows you to buy or sell shares, Bonds, etc., from anywhere in the world and at any time. Hence, you are not bound by place or time if you have an active internet connection. This enables you to save time and makes trading convenient.
Monitor remotely
This trading lets investors see how their investments are performing throughout the day using their computer or smartphone.
Affordable
When your tax liability exceeds Rs. 10,000 in a financial year, paying your income tax in advance is always beneficial. This advance tax payment enables you to pay your taxes on time and prevents you from worrying about the payment at the last minute. It also saves you from defaulting on your payments and paying huge penalties. Hence, it can be affordable to pay advance tax in some cases.
With Online Trading, the brokerage fee is lower when weighed against the commissions charged by brokers, if you use the traditional method.
Eliminates middlemen
Online Trading makes it easy for you to trade independently, without the interference of a broker. Hence, it reduces the overall costs of trading and makes the process hassle-free. This makes Online Trading more beneficial for investors.
Instantaneous transactions
Online transactions are efficient and fast. Hence, funds can instantly be transferred between two accounts, especially if they are held in the same bank. This makes buying and selling stocks quicker, and you can carry out the entire process with only a few clicks.
Greater control
When you have paid more tax than your income tax liability for a particular financial year, you can easily get the amount refunded back to your account. To do so, you do not need another person. Instead, you can file your Income Tax Returns online and claim a refund at will. Afterwards, you can check your tax refund status online and determine if your refund has been processed and deposited in your account.
Similarly, Online Trading lets you buy and sell financial products at will. You need not wait until you contact a broker or wait for the broker to trade on your behalf. Hence, you have better control over your investment decisions.
Market behaviour
When you handle your trades and finances and are responsible for them, you learn to study and understand the market better with time. Eventually, this helps you identify good investments from the bad.
