Investing in a share market is one of the many ways to use your savings and grow your wealth. Before the internet, only a select audience with knowledge about stocks and shares would arrange an investment into share markets. This was a long process which required expertise and relevant resources.
Today, this process has become significantly easy because of digital tools. You can invest in shares using a share market app. Let’s take a look at how to go about this online process.
Choose an online broker:
Traditionally, if you had to buy stocks in a company, you had to arrange a call with a broker who would work as an intermediary to help you get access to the stock market for a fee. Today, you have multiple apps online who work as a broker and can help you get started with trading either with a nominal charge or even with zero brokerage account. Choose an online broker which best suits your financial goals and requirements.
Open a demat account:
Earlier, investors kept an account of their shares in the form of physical certificates. However, these were prone to theft, damage and forgery. With the introduction of Demat or Dematerialized accounts, all your shares, securities, and bonds can be kept in a digital format and consolidated in one place. Thus, to start investing in shares using a share market application, it is essential to make a Demat account with your online broker.
Do your research:
Whether you are a veteran or just starting to invest in shares online, doing thorough research is an unskippable part of the process. As mentioned above, you have to first research which online share market apps to use. After choosing a broker and opening your Demat account, you must research about the different shares available. Go through the price, performance and history of all the shares you are interested in and choose accordingly. It is also important to check all the visible and hidden charges applicable in this process. Keep an eye on daily news relating to the share prices for quick updates on indices.
Start trading online:
Now that you have done your research, chosen an online broker, and created your Demat account, you can add money from your bank account to your trading apps and start trading. Choose the stock you want to buy and select the number of units at the listed price. Once the seller reciprocates your purchase request, your shares will be visible in your Demat account.
Because of online share market applications, investing in shares has become a quick and seamless process. One can do their research, go through stock prices, performances and history before making a decision. A Demat account helps with the consolidation and security of your assets.
Along with the above-mentioned steps, it is also important to plan your financial goals and assess your risk-bearing capacity before you start with online share market trading.