The desire to invest in the stock market grows more robust as more Indians discover the benefits of investing. Along with the advantages of investing, many people realise that investing in the stock market has never been easier. It is now possible to start investing and trading in the markets using your mobile phone. You must download an online stock trading app and open a Demat account to begin investing. However, as someone who has never invested, you may find it tricky to find yourself the best trading app in India. That is because there are so many trading apps on the app store.
Before you learn how you can choose an online trading app, it would be in your best interest to learn about a Demat account. That is because your Demat account and your online trading app are correlated. Your Demat account is like your savings account that holds your shares electronically. You can access the shares in your Demat account and make transactions with the help of your trading app. Without a Demat account, you will not be able to use the trading app. You can download a trading app for free from your Android or iOS app store. However, if you do not have a Demat account, you will see a prompt to open one when you open the app.
5 Useful Tips to Choose Best Online Stock Trading App
Stockbrokers provide both Demat accounts and trading apps. Now, you would not want to open a Demat account with the wrong broker and later realise that the app they provide is terrible. Neither would like to only focus on the app and ignore things like the Demat account opening process and safety concerns. When you pay fees associated with your Demat account, you are paying for the trading app and all the broker’s services. So you must look beyond the trading app and evaluate the broker and all their services. Here are five tips for assessing the broker and finding yourself the best trading app.
1. Only open a Demat account with a DP
You would now only want to open a Demat account with a broker licensed by SEBI (Securities and Exchange Board of India) to provide Demat account services. You can ensure that by making sure the stockbroker is a registered DP or depository participant. Your broker is an intermediary providing Demat account services, and the depository manages your Demat account. So, to avoid falling victim to fraud, open a Demat account only with a registered depository participant (DP).
2. Look for a broker with a solid online and offline presence
To begin investing as quickly as possible, you want to finish the Demat account opening process instantly. You will only be able to open a Demat account immediately if your broker lets you open the account online. You do not want to get yourself in a situation where you must physically deliver your documents to the broker. However, at the same time, it will always be beneficial if your broker has a significant offline presence, as you would be able to seek both online and offline assistance if needed.
3. Ensure that the trading app can perform all essential functions
With your trading app, you should be able to do three things. They are:
- Make transactions
- Monitor the stock market
- Track your investment portfolio
Your trading app should be user-friendly and easy to navigate to successfully do the three tasks mentioned above. You should be able to find a listed company with a simple search feature and invest in its stock with a few taps. Your trading app should show real-time prices of the stocks of the listed companies. It should have built-in price charts and features to help you track stocks. You also would not want your trading activities to be limited to the app. Find out what other trading platforms your broker provides so that you can trade using your laptop or PC.
4. Find out the premium features offered by the broker
Besides the basic features, find out whether your broker offers any additional features or facilities to assist you with investing. These features may include a market-related news section within the trading app. Some brokers even deliver stock-specific research reports and stock ideas you can implement. A team of industry experts draft such research reports and provide investing recommendations.
5. Assess the broker’s charges
After evaluating the services and facilities the broker offers, you assess whether they charge a fair price for those services. Consider opening a Demat account with a broker who provides a Demat account for free. You can access their online stock trading app without paying a penny. Keep these points in mind, and you will find yourself the best trading app in India.