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The fundamentals of online stock trading in India

Today, stocks are more accessible than ever. With a modest investment, you too may enter this fascinating and lucrative system. Here is how.

How to Start Trading Stocks

Stock trading is a glamorous profession. Why depend on the whims of an employer when you can be your own boss? Over the past years, shares have become more accessible to the public. Today, you may start trading at $100, and owning shares is not obligatory. Here’s how to profit from stocks in India.

The stock market is a vibrant system that rarely sleeps. Shares of corporations gain or lose value, allowing traders to profit handsomely. Professionals monetize knowledge and foresight. Unlike investors, they focus on short-term changes, buying and selling frequently. However, the real beauty of modern stock trading is that it may be indirect.

 

Stocks versus CFDs

The old-school model is still irrelevant. You may purchase shares and get dividends based on the company’s performance. However, this is not the only way. Besides, you would need dozens of thousands of dollars to get started with US stocks on the physical exchange ($25,000 to be precise).

That is why CFDs are so popular. A Contract for Difference is a derivative linked to stocks. Its value changes in line with the underlying asset. A trader does not have to own the equity in question. They merely speculate on its price. The broker pays the difference between entry and exit, which explains the term.

Compare this with stock trading. An intraday trader buys and sells shares within the same day. They profit from ups and downs in the stocks price. Meanwhile, investors hold on to their stocks for months or years. They focus on the widest time frames.

A shrewd trader engages both models of money-making. On the one hand, you can generate profit from physical shares or day trading. At the same time, you may buy CFDs connected to the same securities. This makes benefits twofold. With online brokers, both markets are more accessible than ever. Learn about the most effective ways of trading stocks on the FXTM site.

How to Get Access

Online trading is all the rage. The coronavirus pandemic has made it more popular, as so many consumers were stuck at home while employment systems were falling apart. India is no exception — its army of digital traders is growing. Local residents choose between international and homegrown brands.

Big global companies like Forextime have a competitive edge. They are regulated and licensed by multiple monitoring bodies, such as the FCA in the United Kingdom, the FSCA in South Africa or the CySEC in Cyprus. They provide negative balance protection and other attractive conditions. 

Trading through unlicensed companies is unreasonable, to say the least. These are scammers who will only seize your deposit. On the other hand, trusted brands offer:

  • zero commission on stock trades;
  • zero account management;
  • 24/5 support;
  • quick account opening procedures;
  • free access to real-time market data.

Account Registration

Sometimes, stocks and CFDs require two different types of live access. The biggest brokers fuse them into one. Registration is quick. Submit a few documents — and the live account will be ready in a few minutes. 

However, do not enter the market too quickly. It is always reasonable to start with demo access. This way, you can explore the trading software with zero risks, as no deposit is required:

  • Trade shares of the biggest corporations like Facebook, Alibaba, Apple, Microsoft, and American Express using the Forextime Stock Account with 1:1 leverage. Meanwhile, the company’s Stock CFDs Account gives access to 120+ US Shares and 40+ European Shares with leverage as big as 1:10. Both accounts require only $100 to begin.
  • Diversify exposure using the same software. For example, MetaTrader 5 is an all-in-one platform for both markets and currencies, commodities, indices and spot metals. It is packed with useful analytical tools, risk management features, etc. Work from any laptop, tablet, or computer. Popular terminals come in multiple versions, including web-based systems that work in browsers.

Trusted brokers provide around-the-clock support. Their websites contain plenty of educational content, from articles to video tutorials. There are many other sources you could use, including professional YouTube channels with insights from stock experts. They will help you pick the most stable and promising stocks, so you will grow your portfolio wisely. 

The Bottom Line

In 2021, corporate equity is just as accessible as forex trading. A licensed broker will give you access to the stock market and the associated CFDs. This gives you the best of both worlds. 

You do not have to be a financier to begin. Education is freely available, and technical tools allow you to limit the risks. Stocks and CFDs are a click or a tap away. Trade from your laptop or smartphone wherever you are. Online trading is a path to financial freedom.

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