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

FAQs

How can I buy and sell shares online 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.

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.

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.

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.

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.

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.

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.

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.

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.

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!

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.

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...

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.

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.

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 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.

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

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.

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.

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.

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.

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 to earn $500 daily in stock market? ›

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.

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.

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.

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.

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 .

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'.

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.

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.

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.

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.

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...

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.

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.

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

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.

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).

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.

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.