What are the advantages and disadvantages of online trading?
Due to problems during the paper shares, a system is needed to make stock transfers, stock trading easier, and so on. In the new online trading system, the Indian Parliament passed the Derivatives Act, which allows stocks to be traded online, and investors must be able to do so.
A demat account is a prerequisite for online trading of investors
Some of the advantages mentioned below Online transactions:
2) Immediate transfer
3) Stamp duty transfer
1) Easier and more convenient way to own the stock (19459003)
6) Less transaction costs
7) There is no "strange" problem. Or even sell a single share
8) DP Registered address change to all companies.
11) Equity and debt instruments may be held by a hostile account
With less printing and distribution costs, the depository mechanism helps reduce the expense of new problems. It improves the efficiency of registrars and transfer agents as well as corporate secretarial departments.
The shortcomings of online trading are as follows:
1) The first trading investors, along with investors to flow and immerse themselves in the technology, in fact temporarily forget what they actually use
2) There is no relationship between the professional broker and the online trading account holder between the mentor, thus leaving the investor to choose the right shares
3) Not familiar with the Brokerage Software Foundation
4) It's like any other financial strategy that your commitment to online trading requires research and dedication to make sure that everything is up to par with the standards that it is. You have to take the time to do your own research and you have to overcome the possibility of a great learning curve that makes some money from online transactions