Why Online Share Trading?

Is trading through the Internet safe?

What about security of my money, demat shares and my transaction documents?

Isn't trading through the Internet a difficult and cumbersome process?

But I am not comfortable with Internet, or with finance, how can online trading be easy for me?

Isn't trading through the Internet a costly affair?

I am pretty satisfied with my present broker who serves me offline.Why should I choose to go online to trade shares?

How frequently is the prices updated at all these online trading sites?

How can I be sure that I shall be trading at a price I want to or at a ricpe appearing in the website?

What other services can I get by trading shares online?

 

 
Is trading through the Internet safe?
The safety of transactions on the Internet depends on the encryption system used. The better this transaction system, the more difficult it is for any person to hack the site.

Internationally, the best system available today, is the 128-bit encryption, a system, which even the Pentagon uses. ICICIdirect.com is one of the few online share-trading sites in the country equipped with this 128-bit encryption.

Secondly, you too can ensure the safety of the transactions online.You normally get a secured user id and password, the secrecy of which is to be maintained entirely by you.

Thirdly, if the transaction system requires no manual intervention, you further improve the safety in the transactions. Among Indian sites, ICICIdirect.com is one of the very few fully integrated online trading sites. This enables the elimination of the possibility of any manual intervention. Which means orders are directly sent to the exchange ensuring that you get the best and right price.

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What about security of my money, demat shares and my transaction documents?
In systems where the broking, banking and demat accounts are completely integrated, your money remains in your own bank account, and does not get transferred to the broker's pool account.

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Is trading through the Internet a difficult and cumbersome process?
The experience of trading through Internet depends a great deal on the type of product offered by the site. Say, for example, one of the issues bothering you may be tired of the paperwork involved after every trade in writing cheques or TIFDs.

You would then seek a system that eliminates these processes.

In online trading sites, the greater the back-end integration of the system, the greater the amount of work the sites do for you, therefore greater the convenience available to you.

For example, incase of ICICIdirect.com, your broking account, bank account and demat account are linked electronically. So when you punch in a buy or sell order, the system checks the funds/ shares availability and automatically credits/debits the accounts once the order is executed by the exchange.

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But I am not comfortable with Internet, or with finance, how can online trading be easy for me?
Contrary to common perceptions, trading through Internet does not require either any expertise in working on the computer, or any special financial skills.

You could try the demo (demonstration) of the online trading sites like ICICIdirect.com to find out why others like you, with little or no knowledge about the Internet or finance, have switched on to online trading. Or you could attend the demonstrations sessions held by such websites in your city.

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Is trading through the Internet a costly affair?
The convenience provided by online trading is even then worth the costs involved.

And online trading sites are not that costly. For example, a trader can trade shares on margin at rates as low as 0.10%*on ICICIdirect and if one wishes to trade in cash, then the rates applicable are as low as 0.4%*.

However, it is important to compare various online trading sites on brokerage rates, inclusive of all sub-charges.

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I am pretty satisfied with my present broker who serves me offline. Why should I choose to go online to trade shares?
Many of those customers who have chosen to trade shares online today, had at one point of time been trading through offline brokers, just like you are today. They took a chance to go online and trade shares. After realising the advantages of trading shares online, they have shifted to online trading now. In fact, there are more than a lakh customers who have already opened an account with ICICIdirect.com. Just try trading shares after opening an account with any online trading site. However, before choosing an online trading site, please compare all such websites and then make a decision.

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How frequently is the prices updated at all these online trading sites?
The tickers available at online trading sites provide instantaneous updates. Also, some websites can offer to transact in those shares instantaneously and with convenience.

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How can I be sure that I shall be trading at a price I want to or at a price appearing in the website?
The solution to your problem could be provided in different ways by different online share trading sites. At ICICIdirect.com, for any trade order, the customer is asked to click "Proceed" after he has the opportunity to completely check the order verification form.

Moreover, you have the option of modifying or canceling the order till the moment the order is executed at the exchange.

Finally, online trade confirmations reach reaches our customers within 4 minutes, while contract notes are dispatched at the end of the day and reach within 24-36 hours.

With ICICIdirect, you decide what you want to buy and buy the share at the price you want to and therefore you are in total control of your trades.

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What other services can I get by trading shares online?
Internet has brought to the retail investores what was till sometime ago the sole prerogative of large brokerage houses and high net worth individuals. For example at ICICIdirect.com one can access multitude of resources to arrive at his stock picks. Reliable research with an enviable track record is available free of cost.

An investor can now access ICICIdirect.com and do his technical analysis, know what other leading brokers think about a company and whether it is a buy or a sell, (Multex Global estimates), access live news from international news agencies such as Reuters, CNBC, read about what the leading CEOs think about the state of the economy and the capital market.

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