Money is not everything, but money is needed for everything. Earnings from mainstream jobs or businesses sometimes may not be enough to meet life goals. Investing the saved amount provides an opportunity to multiply wealth and grow it over time. Keep money to work, as the saying goes, suggests about investing the money in investment avenues to let its value appreciate over time.
Besides, inflation depreciates the value of money over time. What you could buy with Rs. 100 yesterday, costs Rs.150 today. The value of goods and services rises, and so should the value of your money too, to keep up with the pace.
While there are several investment options available, trading in share markets is one of the ways. Share trading is buying and selling shares of companies in the stock exchange with an aim to earn profits. Share trading has become quite popular in India as more awareness is getting the people interested, and the technology is enabling them to participate in online trading conveniently. The benefits of online share trading are manifolds. Here we list 7 key benefits of share trading that you must know:
- Trade on your mobile from anywhere
Trading in share markets had never been this easy. You can approach a stockbroker to get your Demat and trading account opened online since it is a prerequisite to trade in share markets. Accounts can be opened digitally without any paperwork. Once you have an account you can log in and trade on your mobile or laptop from anywhere.
- Invest directly in stock exchange
You can buy and sell stocks online without involving any third party or any intermediary. You can view prices live as it is there on the stock exchange, place orders independently and take delivery of shares directly into your demat account. You just pay the brokerage fee to your stockbroker for the transactions. There is no intermediary as such which you need to depend on.
- Lesser fee on investments
Today there are stockbrokers who provide lucrative brokerage rates that are highly economical and do not cut your profits significantly. These brokers, known as discount brokers, let you trade with a small subscription amount and charge a flat fee per order. E.g, if they charge a flat fee of Rs.0.99/order, then whether your single trade transaction is for Rs. 10,000 or Rs.1,00,000, you will pay the same brokerage rate of Rs.0.99 for each order.
- No paperwork
This benefit can be appreciated putting the earlier share trading process in context. Prior to the digitization of share markets, trading meant a lot of paperwork. Shares had to be kept as physical certificates and transferring them meant filling forms, signing, couriering, etc. Today all shares are traded in their digital form in stock market. There is no paperwork involved. Everything can be done just with a few clicks.
- Earn higher potential returns
Trading in share markets provides opportunities to earn higher returns compared to other investments. A better understanding of the share market price movements and the way to analyse it and make trade decisions can open avenues to multiply wealth over a shorter span of time. Even simply investing in select equities, with proper research, can help one earn up to 14-15% returns over a long term.
- Easy to track the investments
Investments can be tracked easily in the demat and trading account. Demat account can store multiple investment instruments such as shares, bonds, mutual fund units, Exchange Traded Funds (ETFs), etc. With all the investments at one place, it becomes easier to track and have an overview of the investments.
- Faster transactions
Again, this benefit can be seen in contrast with the earlier times when transactions in shares involved paperwork and hence consumed time. With demat , trading and bank account seamlessly integrated, today the transactions have become really swift and delivery of shares happen within T+2 days after order execution, which is one of the fastest in the global share markets.
Trading in share markets has benefits that help investors put their money to work so that it gains value with time. If you are not trading yet, get started by opening a demat and trading account to start your investment journey.
Disclaimer: Investments in securities market are subject to market risk, read all the related documents carefully before investing.