Don't Neglect These 5 Things About Online Share Trading Platforms

Remember those days when you had to buy a saree or something and you had to rush to the market for it? Traditionally, you'd have to navigate a maze of shops, haggle with shopkeepers, and keep a watchful eye to avoid getting lost. But now there are convenient online platforms where you can browse a variety of sarees, compare prices instantly, and place your order with a few clicks. The same goes for online share trading platforms in India. They offer a convenient way to invest in companies, but with so many options, picking the right one is crucial. Here are 5 crucial things you shouldn't neglect when choosing an online share trading platform!

1) Choosing the Right Online Share Trading Platform

Think of online trading platforms as your virtual bazaars for shares. Just like you wouldn't buy a saree from the first shop you see, choosing the right platform is vital. Here's what to consider:

Features and Functionality

Does the platform offer real-time stock quotes, market research tools, and charting capabilities? Consider your needs and choose a platform that caters to them.

Research and Reviews

Read online reviews and compare features offered by different brokers before making your decision.

Fees and Brokerage Charges

Just like at the bazaar, every online store has its pricing strategy. In the world of online share trading, these come in the form of fees and brokerage charges. Here's a breakdown of the common costs:

Brokerage Fees

Compare fees for buying and selling shares. Some platforms charge a flat fee per trade, while others have a percentage-based commission.

Account Maintenance Charges

Annual fees are charged for maintaining your Demat and Trading Accounts.

Other Charges

Some platforms might have additional charges like account opening fees, inactivity fees, or data charges.

Example: Let's say you want to buy 100 shares of Infosys (INFY) at ₹1,500 per share. Here's how fees can impact your investment:

Cost for Platform A: ₹20 (brokerage) = Total Cost 

Cost for Platform B: ₹750 (0.5% of ₹1,50,000) = Total Cost

Choosing the Right Platform: Compare the fee structure of different platforms to find one that aligns with your trading frequency and investment amount.

2)User Interface and Features of Online Share Trading Platform

Imagine navigating a maze at a fair. Some mazes are simple and easy to navigate, while others are complex and confusing. Online share trading platforms are similar. Here's what to consider:

User Interface (UI)

The platform's layout and design. Look for a platform that's user-friendly and easy to navigate, especially for beginners.

Features

The functionalities offered by the platform. This could include advanced charting tools, research reports, order placement options, and portfolio tracking tools.

Example: You're a new investor who wants a simple platform to buy and sell shares occasionally. Platform A might have a user-friendly interface with basic features, while Platform B might have a complex interface with advanced charting tools and research reports.

Choosing the Right Platform

Consider your investment experience and needs. If you're a beginner, prioritise a user-friendly platform. As you gain experience, features like charting tools become more valuable.

3)Online Share Trading Platform’s Research and Analysis Tools

At the bazaar, you wouldn't buy a saree without checking the fabric and design. Similarly, you shouldn't buy shares without proper research. Here's how online platforms can help:

Research Reports

Some platforms offer research reports and analyses on companies listed on the stock exchange.

Fundamental and Technical Analysis Tools

These tools help you analyse a company's financial health and past price movements. However, beginner investors should approach these tools with caution.

Example: You're considering investing in Reliance Industries (RIL). Platform A might offer basic company information, while Platform B might offer in-depth research reports and charting tools.

Choosing the Right Platform: For beginners, basic company information might suffice. As you gain experience, platforms with advanced research tools can become valuable resources.

4. Security and Reliability of the Online Share Trading Platform

Just like you wouldn't trust a stranger with your wallet at the bazaar, online security in share trading is paramount. Here's what to look for:

SEBI Registration

Ensure the platform is registered with the Securities and Exchange Board of India (SEBI).

Two-factor authentication (2FA)

This adds an extra layer of security to your account login.

Data Encryption

The platform should use encryption to protect your sensitive financial information.

Choosing the Right Platform

Always choose a platform that is SEBI-registered and prioritises security measures like 2FA and data encryption. Don't compromise on the safety of your investments.

Availability of Customer Support at your Online Share Trading Platform

Imagine getting lost in a market and having no one to ask for directions. A reliable customer support system is essential for any online trading platform. Here's what to consider:

Availability

Does the platform offer 24/7 customer support or limited hours? Having support available anytime ensures you're never left stranded.

Multiple Channels

Does the platform offer support through phone, email, chat, or a combination of options? Phone, email, and live chat options provide flexibility to reach support through your preferred method.

Resolution Time

How quickly does the platform address customer queries and concerns? The platform should address your concerns promptly to minimise any disruption to your trading activities.

Conclusion

Choosing an online share trading platform is like selecting your personal stock market bazaar. By considering the factors outlined above, you can navigate the vast options and find a platform that perfectly suits your investment needs and goals. Remember, a user-friendly interface, robust security features, and helpful customer support are crucial for a smooth and successful trading experience. So, do your research, compare platforms, and choose wisely to embark on your journey as a savvy online investor!