Best online stock broker involves a process which allows the individual investors and traders to buy and sell securities over an electronic network, usually with such a stock broking firm.

You will want to understand the differences in brokers as well as the type of investor you are before choosing a specific broker. Two types of brokers include discount brokers and full service brokers.

Discount brokers do not provide all the services provided by any traditional broker and hence they charge a brokerage that is at a discount to what is charged by traditional brokers. Usually charging price per trade is the norm. 

SAS Online, Zerodha & RKSV are pioneers in the online discount brokerage industry. A flat online brokerage may also be charged for the services provided that can be substantially lower than the amount charged by conventional brokers. 

SAS Online provides trading services at only Rs.9 per-trade coupled with an excellent proposal of providing unlimited trading plan. As per their unlimited brokerage plan SAS Online offers unlimited online trading in equity at just Rs.999 fixed pay per month. 

Investing in stocks online, also frequently referred to as online stock trading brokers or simply trading online, refers to the action of placing purchase and/or sell orders pertaining to financial securities such as equities or shares by using the web-based registered online trading platforms provided by a registered best online stock broker. 

Stock brokers in India purchase and sell stocks through a stock exchange and charge a commission, called brokerage, for the services they provide. A broker, therefore, is basically a person who holds a license to trade in stocks through the stock exchange. He can be physically present on the trading floor or he can place trading orders by phone or nowadays even through a computer. Online stock trading brokers offer their stock trading services through an online portal.

 Online stock trading involves a process which allows the individual investors and traders to buy and sell securities over an electronic network, usually with such a stock broking firm.

Understanding trading and investing

Online Stock trading is the regular selling and buying of stock, currency and commodities with the aim of spawning profits. While a stock investor may be satisfied by annual returns in the range of 10-15% a stock trader is keen earning a certain percentage on a monthly basis. A trader buys stock when the prices go down and sells them immediately the prices go up, usually within very short periods of time. In falling markets, traders sell at higher prices and to cover they buy at low prices. Traders make their losses or profits in very short durations as compared to investors who take a long period before they offload their stock. Traders may at times sale their stock at predetermined prices in order to avoid making further losses; this is done as a preventive mechanism. Stock traders take high probability trading steps that are reached through stochastic oscillators and moving averages.

Stock traders are categorized based on the duration between when they purchase and sale their trading instruments. Below are categories of stock traders:

The above trading styles are taken up by traders depending on several factors that are not limited to: time the trader has set aside for trading, risk tolerance, trading experience, account size and personality.

Investors on the contrary consistent accumulate profits over long periods of time by purchasing then holding on to bonds, mutual funds, stock portfolios, stock baskets or several other instruments. Stock investors gain profits through reinvesting previously earned dividends and profits by adding more stock to their stock share or compounding. A stock investor may hold a stock for several years with some even for a decade or more; during this time the investor watches out for bonuses such as stock splits, dividends and interests. Stock investors are motivated by the fact that despite the market fluctuations they will be able to recover from their losses when the prices rebound and they are always anxious market essentials especially price.

At the end of the day the trader and investor both earn profits; traders take advantage of the fluctuating stock prices to buy and sell thereby earning small but regular profits, on the other hand investors buy but hold stock for longer periods with the aim of making large profit margins.

Choosing between trading and Investing

Fist you need to determine how much time you are willing to devote to going through charts, reading charts and going through company basics. For people who are can only spend marginal time to conduct a background check on a company it is advisable that you consider long term investments.

If you have all the time to go through financial statements, conducting background checks, going through projections and growth charts as well as being ready to play the market then you may consider trading but it is not going to be a walk in the park. For investing you have to do thorough research and be certain that the companies you want to put your money in are stable. It is advisable that you check the companies foundation especially; financial background, consistent growth and profit by extending to several years that have passed.You also need to find out about the organizations leadership structure and how it is performing against its competitors in the industry as well as well as identifying projects that they are planning to undertake which you think will make the organization perform well in future.

Whether you choose on trading or investing one thing is for sure; you will have to put in some man hours and energy.

Common mistakes investors make

They do not plan: There is saying that states “failing to plan is planning to fail” and this applies to stock investing as well. It is advisable that every individual who wishes to go into stock investing should have an investment policy that is aimed at addressing their goals and objective, appropriate benchmarks, diversification and asset allocation.

Short time horizons: You should evaluate your time horizons and if you have dependents whom you will be leaving as heirs then your investment time horizon should be long. It is common that everyone will focus on the short term but it is advisable that you set your horizons based on what purpose the earned profits will serve.

Paying attention to financial news: Many people are misled to believe that financial news can help them in decision making in regard to their investment which is not always the case.

Avoiding re-balancing: This requires that you sale off asset classes that are well performing then buying those classes that are not and holding them to the point that they earn profit. This to most investors is not an easy decision but is highly profitable in the long run.

By recognizing and avoiding the above mistakes that most investors make you will be highly advantaged in meeting your goals and objectives. The by avoiding the above you will be taking solutions that are not exciting but you are sure of greater profits which is what you are looking to achieve with your investment.

Common mistakes traders make

Not learning. Most people would go into trading without learning and end up making losses. Just as you would go to college for a degree to get a job so should you learn the various trading strategies before you can start trading. At least learn a single technique and use it as you learn others.

Over trading. This is a mistake common to every trader who is looking to make quick money. One thing most people do not understand is that they make more trading mistakes whenever they are under pressure.

Not taking a stop loss. The trade will not always be in your favor and it is advised that whenever the stocks are going against you it is best that you sell of your stock at the next predetermined price. This together with money management will be profitable to the trader in the long run.

Trading with divided attention. Trading is very demanding and should be allocated quality time and your full attention during that time. It is common that the prices will stagnate at a single point over a long duration and either rise or go down at high speeds which may lead to your target or loss thus you need to be very watchful.

Trading when having negative emotions. A bad mood can negatively affect your trade thus it is advisable that you do not trade when you are emotionally down or sick and this does not mean that you do not pay attention when elated; you may overlook some things. It is best that you embrace mechanical trading and keep your sensations away from the trading ring.

The more you trade you will be able to gain more experience thus learning ways that you can employ to avoid the above mistakes.

For the trading facility that a broker provides you he charges a fee called the brokerage. Every broker has his own plans to offer but the rates are broadly standardized. 

An unlimited brokerage plan is a brokerage plan offered for trading in any segment such as equity and derivatives (both currency and commodity) where the broker charges a predetermined static monthly fee against the facility for unlimited trading and by unlimited we mean literally unlimited in terms of volume or size of trade that is carried out during a month. You pay that fee every month irrespective of the volume of your activities.

The fixed monthly fee is charged for every segment. Say for example your broker charges a flat fee of Rs.2000. This mean you pay Rs.2000 only and nothing in excess (except the GST) for as many trades as you wish to carry out in the equity segment irrespective of equity cash, delivery, future & options. Rs.2000 is the amount that remains fixed and has to be paid even if you don’t trade in a particular month. It is the fixed brokerage. The fixed monthly brokerage charged varies from broker to broker.

Unlimited Brokerage Plan of SAS Online

If you want to buy or sell shares in the stock market, you need to have a trading account. An online trading account helps you to place buy and sell orders for shares online. You will probably want to open an account with any of the online discount broker that will let you trade shares easily using its website or online trading platform. 

An online trading account has 3 components – a bank account, a trading account as also a demat account. The demat account will be used to store dematerialized shares in just the same way as a bank account is used to store your funds. The trading account will help to connect with the stock exchange for trading securities online. 

You have to transfer funds from the bank account so that you can trade online using your trading account. Post transfer you can utilize these funds for purchasing and selling securities online.

Most banks nowadays provide online trading facilities to any customer who wants it. A trader can access his online trading account from anywhere he wants. All he needs is a computer and a net connection. Mobile apps also provide access to online trading account.