How to buy and sell shares online in India (2023)

In India, people have always been sceptical about investing in shares or equities. While most of you prefer buying gold, silver or land as these can always appreciate in value, in the future. You need to learn how to buy shares through Demat. You can buy and sell shares at a reasonable level of profit. You can source a broker to help you trade through, during the initial days. Once you become a thorough expert in buying and selling shares you can try dabbling at the stock market on your own.

The shares to buy on the stock market today are several and are generated from a huge range of companies and sectors. Once you get a hang of trading and investing, you can choose the companies you like, do some research on their backgrounds in terms of operations and past profit-making activity, and then invest. When you are a beginner, or even moderately experienced, the online scene of stock trading may entice you with “great deals”. However, with any online activity that takes place with a simple click, and especially while investing in direct equity, you should be wary of your choices and actions, as your money is on the line.

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These are the 6 steps by which you can buy shares online:

Obtain a PAN card

You have to obtain a PAN card. The full form for PAN is Permanent Account Number. Obtaining a PAN number is a primary requirement for entering any form of financial transactions, across our country. It is a 10 digit alpha numeric number and a valid ID proof that is issued by the Govt. of India. The tax authorities use the PAN card for assessing one’s tax liabilities.Without a PAN card, hardly any financial transactions can take place in India. You need a PAN card for whatever investments you plan to make, especially if you are planning to invest in the stock market and stock-related investment channels.

How to Buy Shares Online? Open an operative Demat Account

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This section will get you off to your online share purchase activity. To facilitate an easier transition of buying and selling shares, you need to necessarily open a valid Demat account. You will have a fill in a demat form online. You will have to attest to the required set of documents and scan these to the brokerage company you desire transacting with. After the documents are verified in a precise manner, you can open a demat account and you can use the account to buy and sell stocks, shares and derivatives. Your demat account is the storehouse of your stock portfolio.

How to Buy Shares in a Company? Get yourself a broker

If you are directly transacting with stocks or shares by going to a broker’s office, you will definitely have a broker who gives you guidance on the day-to-day aspects of share trading. These individuals are certified by the SEBI board (Securities Exchange Board of India) and given licenses to act as brokers.You can invest in the share market with an online broker and this is easier than going to the physical premises of a broker. These days, all brokerages, highly reputable ones, give you seamless online platforms to make your stock purchasing smooth and quick.

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In other words, a broker is an intermediary between an independent share trader and the stock broking firm. He charges a small sum as commission to help traders buy and sell shares. Brokers can also be companies or online agencies that are registered or licensed by SEBI or Exchange Board of India in order to regulate the share markets. Online brokerages, in keeping with present-day advancements in technology and user-friendly applications, have all your processes conveniently available online, from setting up your Demat account and linking it to trading and bank account to giving you crash courses about how to buy shares with some useful tips and strategies online. How to buy shares in India has become easier than before with great access for everyone who has a smartphone.

Depository Participant or DP

There are two types of Depository Participants in India. These are NSDL- National Securities Depository Limited and CSDL- Central Securities Depository Limited. These agencies have Depository Participants. The DP’s or Depository Participants help you store the shares you hold. They provide you with a unique account number pertaining to the same.

You cannot get confused with Trading or Demat account. Demat shows the number of shares you hold. Trading account reflects the buying and selling that has taken place in your account.Essentially, a trading account helps you to undertake transactions of buying and selling shares on the stock exchange. It is the DP that holds the shares you have bought and releases the shares that you have sold. A broker would be taking care of all this. Yet it is better that you conceptually know what the DP or Depository Participant is all about.Generally, your DP may be your broker, but can also be your bank which has a dedicated Demat department and is authorised to let you open a Demat account and a linked broking account/trading account.

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How to buy shares in India? Professional investors make use of UIN

UIN is otherwise known as a Unique Identification Number. UIN is mandatory for investors who transact with a capital of 1, 00, 000 and above. For usual or low key investors a UIN would not be needed. Investors usually play with the bigger innings to buy high-end blue chip stocks or to buy shares of high profile companies. Bigger innings stocks can assure you better returns on the investment over mediocre stocks. Apple Inc., Nestle, Hindustan Lever, India Cements and L& T are some of the blue chip shares you can try investing your money with.The stock market offers a huge potential for investors and shares to buy are several from good and established companies. Your Unique Identification Number is something that you must safeguard at all times, as it is the primary way to identify yourself as an investor with your Demat account and other linked accounts.

Buying and selling shares

This is how you indulge in buying and selling of shares. Say you want to buy a share of Reliance Industries at Rupees 885; you can inform your broker accordingly. Buy Reliance Industries Ltd at Rupees 885. Quantity: 10. Even if you are operating online, you can contact the broker by dialling the toll free number or customer care number, if you do not have access to internet at that particular point of time. If you want to sell a Reliance Share at Rupees 895, you can do so accordingly. Sell Reliance Shares Ltd, Quantity: 3, Price: 895. The sale order will be processed when the share reaches that price. You can execute a stop order transaction, if you want to freeze a particular transaction on account of market fluctuations.

If you want to learn how to buy shares, you can use a number of means and tools at your disposal. There are blogs you can read on all the major brokerage websites and videos you can learn from too. Furthermore, the internet is an online environment where you can take some courses on share trading and get the best advice from experts, while learning from their common mistakes.

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Additionally, on your part, if you are interested in a particular company to invest in, delve into the research aspect of the company’s previous success to find out if you should buy the stock. Learn how to buy shares through Demat. Buy shares online to sell them for a reasonable level of profit. A rule of thumb is to buy low and wait enough so you can sell high.
Learn how to buy shares through Demat. Buy shares online to sell them for a reasonable level of profit.

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How can I buy and sell shares online in India? ›

Steps to Buy Stocks Online in India
  1. Obtain a PAN. You would not be able to buy shares online if you do not have a PAN. ...
  2. Open DEMAT and Trading Account. These are the accounts you'd mandatorily require to buy stocks online. ...
  3. Select a Broker. ...
  4. Link Bank Account with Trading Account. ...
  5. Acquire UID.
Feb 2, 2023

How buy and sell shares online for beginners? ›

How to Buy shares Online in India?
  1. Getting a PAN card. Obtaining a Permanent Account Number (PAN) is the first step towards trading in the stock market. ...
  2. Open a Demat Account. ...
  3. Open a Trading Account. ...
  4. Register with a Broker/Brokerage Platform. ...
  5. The need for a Bank Account. ...
  6. Get your Unique Identification Number (UIN)

Can I buy and sell same stock multiple times a day in India? ›

In general, as long as you adhere to the rules of the Financial Industry Regulation Authority (FIRNA), you can buy and sell stocks as frequently as you like.

Which stock trading site is best for beginners in India? ›

Zerodha has more than one crore active clients contributing almost 15% of all Indian retail trading volumes. This app is recommended for beginners as well as advanced traders and investors owing to its robust technology platform.

Who is the No 1 broker in India? ›

Zerodha is the top most stock broker among all the brokers in India since 2019. Zerodha is followed by Upstox, Angel One, ICICIdirect and Groww.

Do I need to pay tax for selling shares in India? ›

The seller makes short-term capital gain when shares are sold at a price higher than the purchase price. Short-term capital gains are taxable at 15%. What if your tax slab rate is 10% or 20% or 30%? A special rate of tax of 15% is applicable to short-term capital gains, irrespective of your tax slab.

How much money do you need to start buying shares? ›

Some brokers are more lenient than others in this area, but as a general rule, $500 is usually the minimum amount. In saying that, many unlisted investment vehicles such as managed funds or investing apps have different rules and will accept lower investment amounts.

How can I buy shares in India without broker? ›

You can open a demat account online without the need to visit any authority in person. All you need to do is contact a Depository Participant (DP). All Demat Accounts are backed by Central Depository Services India Ltd (CDSL) and National Securities Depository Ltd.

Can I directly buy shares without a broker? ›

An investor cannot directly buy or sell shares on a stock exchange. Registered members of a stock exchange are called stock brokers. They trade on an investor's behalf.

How to earn 1,000 Rs per day from share market? ›

If you want to make money every day, you should indulge in intraday trading. In intraday trading, you buy and sell stocks within a day. Stocks are purchased not as a form of investment, but as a way of making profit by harnessing the fluctuations of the stock prices.

Do you get taxed every time you sell a stock? ›

Generally, any profit you make on the sale of a stock is taxable at either 0%, 15% or 20% if you held the shares for more than a year or at your ordinary tax rate if you held the shares for a year or less. Also, any dividends you receive from a stock are usually taxable.

How many stocks can I buy and sell in one day? ›

There are no restrictions on placing multiple buy orders to buy the same stock more than once in a day, and you can place multiple sell orders to sell the same stock in a single day. The FINRA restrictions only apply to buying and selling the same stock within the designated five-trading-day period.

What is the minimum money I need to start stock trading in India? ›

The answer is simple: There is no minimum limit to start investing in the Indian stock market. You simply need to have sufficient capital to cover the price of a stock. So, you do not need a huge amount of money to start trading in India. It is possible to buy stocks for even less than Rs 10!

Which is the No 1 trading app in India? ›

Zerodha Kite is the best trading app in India, followed by Angel Broking, Upstox Pro app, 5paisa Online Trading app, Sharekhan app, and many more.

Which online broker is best in India? ›

Stock Brokers
  • Zerodha (3.8) Full Details. Discount Broker. ...
  • Groww (3.1) Full Details. Discount Broker. ...
  • Angel One (3.2) Full Details. Full Service Broker. ...
  • Upstox (3.4) Full Details. Discount Broker. ...
  • ICICI Direct (3) Full Details. ...
  • HDFC Securities (3.1) Full Details. ...
  • Kotak Securities (3.1) Full Details. ...
  • 5paisa (3) Full Details.

Which is the cheapest brokerage in India? ›

Zerodha (₹20/trade) ProStocks (₹899 Unlimited) Upstox (₹20/trade) Espresso (Sharekhan) (₹20) Paytm Money (₹15/trade) More Discount Brokers... Angel One (₹20/trade) ICICI Direct (₹20/trade) Nuvama (₹10/trade) Sharekhan Anand Rathi More Brokers...

Who is the most successful stock trader in India? ›

Top 10 Traders in India
PositionTop Traders in India
1Premji and Associates
2Radhakrishnan Damani
3Rakesh Jhunjhunwala
4Raamdeo Agrawal
6 more rows
Jan 30, 2023

Who is the richest stock broker in India? ›

1. Radhakishan Damani. Being one of the richest stock investors in the country, Radhakishan Damani's portfolio as of September 2022 was ₹193,527 Cr.

How can I avoid tax on shares in India? ›

Sell your shares or mutual funds just before it makes a profit of Rs. 1 lakh and book your profits. This way, your gain will be exempt from LTCG tax. There are no regulations in buying the same shares and mutual funds again, right after booking the profit.

What amount of stock is tax-free in India? ›

An investment of up to Rs. 1 lakh gets deduction under Section 80C. Long-term capital gains are tax-free. Dividends received are tax-free.

How much tax do I have to pay if I sell my stocks India? ›

There is a 15% tax on short-term capital gains that fall under Section 111A of the Income Tax Act. This includes equity shares, equity-oriented mutual-funds, and units of business trust, sold on or after October 1, 2004 on a recognised stock exchange, and falling under the securities transaction tax (STT).

How do beginners get shares? ›

Online Stock Trading for Beginners in 6 Steps
  1. Open a trading account. Get started by registering for a Standard Bank Online Share Trading account in five simple steps: ...
  2. Define your own investment goals. ...
  3. Decide on how much money you have to invest. ...
  4. Educate yourself. ...
  5. Define how you want to invest. ...
  6. Find a broker.

Can I buy shares with $500? ›

How much do you need? Most brokers would require the first trade to be at least $500 which would be referred to as the 'minimum marketable parcel of shares'. The size of increments or additional purchases thereafter would be at the individual broker's discretion.

How do I profit from buying shares? ›

There are two ways to make money from owning shares of stock: dividends and capital appreciation. Dividends are cash distributions of company profits.

Which broker is free for trading in India? ›

Brokers like Zerodha, Upstox, Fyers, ProStocks and Indiabulls offer brokerage free investment in the India stock market. The customer doesn't pay any commission while trading in the equity delivery segment.

Can I buy 1 share of stock in India? ›

There is no minimum investment required as you can even buy 1 share of a company. So if you buy a stock with a market price of Rs. 100/- and you just buy 1 share then you just need to invest Rs. 100.

Who Cannot buy stocks in India? ›

As such there is as such no age restriction for investing in the stock markets of India. It's just that you should be more than 18 years old to create a Demat account and a trading account. To open your Demat and trading account a PAN card is a must. And you can only apply for a PAN card if you are18 years or older.

What is the simplest way to buy shares? ›

The easiest and cheapest way to buy shares is by using an investment platform. Once you are signed up, you simply have to select the shares you want to buy and home many of them. An investment platform lets you buy, sell and monitor your investments in one place.

What is the best app for buying shares? ›

For example, brokerage apps such as Robinhood and Fidelity Investments allow you to buy stocks and ETFs. Other apps such as those from robo-advisors Wealthfront and Betterment will buy stock funds and create a portfolio on your behalf.

How can I start investing in India? ›

To invest in stocks publicly listed on the market, you need to fulfil the following requirements:
  1. Personal documents. PAN Card. ...
  2. Demat Account. A Demat account serves as an electronic house for your shares. ...
  3. Trading Account. A Demat account and trading account go hand in hand. ...
  4. Linked Bank Account.

How to earn $500 daily in stock market? ›

How to Earn 500 Rs Per Day in Share Market? Tips For Stock Market!
  1. Believe in booking small profits and consider doing multiple trades.
  2. Focus on the shares having a high volume.
  3. Start trading in trending shares.
  4. Focus on entry and exit points.
  5. Management of trading costs.
  6. Take advantage of stop-loss.
Aug 31, 2022

Can I make 1 lakh per day from from trading? ›

Of course, it is possible to earn Rs. 1 lakh per day from the stock market by just indulging in it. Achieving this target day after day is not easy for experienced investors and traders. But it requires a lot of hard work and patience as well, as quick thinking as well as appropriate decision-making skills.

Can I earn 20k from share market? ›

You can earn anything from Rs. 100 to Rs. 10,000 or even Rs 20,000 in a day with intraday trading. But this depends on your risk appetite.

Do I have to report stocks if I lost money? ›

If you experienced capital gains or losses, you must report them using Form 8949 when you file taxes. Selling an asset, even at a loss, has crucial tax implications, so the IRS requires you to report it. You'll receive information about your investments from your broker or bank on Forms 1099-B or 1099-S.

How do I avoid paying taxes when I sell stock? ›

Of course, if you end the year in the 0% long-term capital gains bracket, you'll owe the government nothing on your stock sales. The only other way to avoid tax liability when you sell stock is to buy stocks in a tax-advantaged account. One way to avoid paying taxes on stock sales is to sell your shares at a loss.

What happens if you sell a stock for a loss? ›

Selling Stocks and Capital Losses

If you sold stocks for less than you paid to buy them, you have a capital loss. You can use capital losses to help offset capital gains through what is known as tax-loss harvesting .

Why do you need $25,000 to day trade? ›

One of the most common requirements for trading the stock market as a day trader is the $25,000 rule. You need a minimum of $25,000 equity to day trade a margin account because the Financial Industry Regulatory Authority (FINRA) mandates it. The regulatory body calls it the 'Pattern Day Trading Rule'.

What day is best to sell stock? ›

The upshot: Experienced traders often view Monday as the best day of the week to buy and sell stocks because of the time and pent-up demand since the last trading session the previous Friday.

How long does it take to sell stock and get money? ›

When you buy or sell securities, the official transfer of the securities to the buyer's account or the cash to the seller's account is called "settlement." For most stock trades, settlement happens two business days after the trade is executed.

How much money is needed to start day trading? ›

Minimum amount to day trade

This means that you can start investing with as little as $10. Most of these brokers also have a minimum balance for some of their margin accounts. The same applies to other forms of accounts. For example, most cryptocurrency exchanges like Gemini and Robinhood don't have a minimum deposit.

How should a beginner invest in stocks? ›

One of the easiest ways is to open an online brokerage account and buy stocks or stock funds. If you're not comfortable with that, you can work with a professional to manage your portfolio, often for a reasonable fee. Either way, you can invest in stocks online and begin with little money.

What is the safest trading platform in India? ›

List of Best Trading Platforms in India :-
  • Sharekhan Trade Tiger.
  • Angel Broking Speed Pro.
  • Trade Station.
  • Trade Eye.
  • Upstox Pro.
  • Trader Terminal (TT)
  • NSE Now.

What is the most reliable trading platform in India? ›

Online Trading Platforms in India

Today, one of the toppers on the list of the best share trading platforms is Motilal Oswal. When you wish to choose a great trading platform online, others that are decently good include Sharekhan, Angel Broking, etc. These are either or all, web-based, desktop-based, or mobile-based.

Who is no 1 broker in India? ›

Zerodha (₹20/trade) ProStocks (₹899 Unlimited) Upstox (₹20/trade) Espresso (Sharekhan) (₹20) Paytm Money (₹15/trade) More Discount Brokers... Angel One (₹20/trade) ICICI Direct (₹20/trade) Nuvama (₹10/trade) Sharekhan Anand Rathi More Brokers...

What is the average brokerage fee in India? ›

Minimum Brokerage Amount (Full-service)
BrokerMinimum BrokerageBrokerage (Eq Delivery)
SBI SecuritiesRs 0.05 for Cash, Rs 0.01 Future0.50%
AxisDirectRs 20 per trade0.50%
Geojit1p per share or Rs 20/contract whichever is higher0.30%
Nuvama (Edelweiss)0.03% Equity delivery, 0.01% Intra-day and FuturesRs 10 per executed order
6 more rows

Can I buy a stock and sell it the next day in India? ›

On T+1 day, you can sell the stock you purchased the previous day. If you do so, you are making a quick trade called “Buy Today, Sell Tomorrow” (BTST) or “Acquire Today, Sell Tomorrow” (ATST). Remember, the stock is not in your DEMAT account yet.

Can I buy and sell shares without a broker? ›

It is possible to open a Demat account without a broker through DPs but in order to participate in the stock market transactions, you have to open a trading account with the help of some SEBI registered broker/sub-broker. You can find many brokers who offer services at minimum brokerage charges.

How can I buy shares in India for beginners? ›

If you want to buy shares, you must first approach a SEBI-registered member, or broker, of a stock exchange.
The Demat account is where your securities will be held digitally. You will need to furnish the following documents to open a new Demat account:
  1. A passport-size photograph.
  2. A copy of your PAN card.

Which is the cheapest stock broker in India? ›

Zerodha (₹20/trade) ProStocks (₹899 Unlimited) Upstox (₹20/trade) Espresso (Sharekhan) (₹20) Paytm Money (₹15/trade) More Discount Brokers...

What is the minimum amount to buy shares in India? ›

The answer is simple: There is no minimum limit to start investing in the Indian stock market. You simply need to have sufficient capital to cover the price of a stock. So, you do not need a huge amount of money to start trading in India. It is possible to buy stocks for even less than Rs 10!

How many shares should I buy first time? ›

Is there an ideal number of stocks to own? Not exactly, according to experts—but you should have at least 20 and possibly a minimum of 60, according to a range of research and investing experts and research.

Which day is best to buy shares in India? ›

Many forums will tell you that Monday is the best day to buy stocks, while Friday is the best day to sell stocks. The logic behind this advice is that stock prices are said to be at the lowest on a Monday (meaning you will buy shares at a lower price).

How many times can I trade in a day in India? ›

The maximum number of trades should be limited to 5 per day. Holding overnight is usually done to try and avoid a loss. Holding overnight for an expected gain is too risky for the trader.

Which time is best to buy shares? ›

Best time of day to buy stocks -

The Indian stock market operates from 9:30AM to 3:15PM. Intraday traders who buy and sell stocks within a given day most often consider 9:30AM to 10:30AM an ideal time to trade. The stock market takes 15 minutes to react to the events which transpired since it last closed.


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