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A dummy's guide to online trading

August 20, 2008

Text: Sheetal Jhaveri

Easy access to the Internet has changed the way we handle our financial transactions. Right from banking, to buying mutual fund units, to stock trading, everything is just a click away. You can be in any corner of the world, but you will never be away from your bank or your stockbroker. It is freedom like you never imagined before.

Now you can buy shares of Infosys, or for that matter any other company, on the Bombay Stock Exchange or National or the National Stock Exchange even if you are in Honolulu or Timbuktu! But before you jump at this opportunity let us first understand what online trading in shares is all about.

Online trading in simple terms is buying and selling of shares using the Internet. With online trading, customers can access the Web site of a brokerage with the help of their internet service provider and can trade in shares, mutual funds, derivatives, IPOs, commodities etc.

The most important thing when you are planning to start online trading is to select a brokerage which can serve all your needs with minimum hassles and maximum facilities. Here are the major points to consider while selecting a brokerage.

Photograph: SAJJAD HUSSAIN/AFP/Getty Images
Sheetal Jhaveri is a financial consultant and can be reached at

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