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Why Online Share Trading? Is trading through the Internet safe?
What about security of my money, demat shares and my transaction documents? Isn't trading through the Internet a difficult and cumbersome process? But I am not comfortable with Internet, or with finance, how can online trading be easy for me? Isn't trading through the Internet a costly affair? I am pretty satisfied with my present broker who serves me offline. Why should I choose to go online to trade shares? How frequently is the prices updated at all these online trading sites? How can I be sure that I shall be trading at a price I want to or at a ricpe appearing in the website? What other services can I get by trading shares online?
Is trading through the Internet safe?
The safety of transactions on the Internet depends on the encryption system used. The better this transaction system, the more difficult it is for any person to hack the site.
Internationally, the best system available today, is the 128-bit encryption, a system, which even the Pentagon uses. Emkayshare.com is one of the few online share-trading sites in the country equipped with this 128-bit encryption.
Secondly, you too can ensure the safety of the transactions online. You normally get a secured user id and password, the secrecy of which is to be maintained entirely by you.Thirdly, if the transaction system requires no manual intervention, you further improve the safety in the transactions. Among Indian sites, Emkay Shares & Stock Brokers Ltd is one of the very few fully integrated online trading sites. This enables the elimination of the possibility of any manual intervention. Which means orders are directly sent to the exchange ensuring that you get the best and right price?
What about security of my money demat shares and my transaction documents?
In systems where the broking, banking and demat accounts are completely integrated, your money remains in your own bank account, and does not get transferred to the broker's pool account.
Is trading through the Internet a difficult and cumbersome process?
The experience of trading through Internet depends a great deal on the type of product offered by the site. Say, for example, one of the issues bothering you may be tired of the paperwork involved after every trade in writing cheques or TIFDs. You would then seek a system that eliminates these processes.
In online trading sites, the greater the back-end integration of the system, the greater the amount of work the sites do for you, therefore greater the convenience available to you.
For example, incase of Emkay Shares & Stock Brokers Ltd, your broking account, bank account and demat account are linked electronically. So when you punch in a buy or sell order, the system checks the funds/ shares availability and automatically credits/debits the accounts once the order is executed by the exchange.
But I am not comfortable with Internet, or with finance, how can online trading be easy for me?
Contrary to common perceptions, trading through Internet does not require either any expertise in working on the computer, or any special financial skills.
You could try the demo (demonstration) of the online trading sites like www.emkayshares.com to find out why others like you, with little or no knowledge about the Internet or finance, have switched on to online trading. Or you could attend the demonstrations sessions held by such websites in your city.
Is trading through the Internet a costly affair?
The convenience provided by online trading is even then worth the costs involved.
And online trading sites are not that costly. For example, a trader can trade shares on margin at brokerage rates as low as 0.10%* on Emkay Shares & Stock Brokers Ltd and if one wishes to trade in cash, then the rates applicable are as low as 0.4%*.
However, it is important to compare various online trading sites on brokerage rates, inclusive of all sub-charges.
I am pretty satisfied with my present broker who serves me offline. Why should I choose to go online to trade shares?
Many of those customers who have chosen to trade shares online today, had at one point of time been trading through offline brokers, just like you are today. They took a chance to go online and trade shares. After realising the advantages of trading shares online, they have shifted to online trading now. In fact, there are many customers who have already opened an account with Emkay Shares & Stock Brokers Ltd. Just try trading shares after opening an account with any online trading site. However, before choosing an online trading site, please compare all such websites and then make a decision.
How frequently are the prices updated at all these online trading sites?
The tickers available at online trading sites provide instantaneous updates. Also, some websites can offer to transact in those shares instantaneously and with convenience.
How can I be sure that I shall be trading at a price I want to or at a price appearing in the website?
The solution to your problem could be provided in different ways by different online share trading sites. At Emkay Shares & Stock Brokers Ltd, for any trade order, the customer is asked to click "Proceed" after he has the opportunity to completely check the order verification form.
Moreover, you have the option of modifying or canceling the order till the moment the order is executed at the exchange.
Finally, online trade confirmations reach reaches our customers within minutes, while contract notes are dispatched at the end of the day and reach within 24-36 hours.
With Emkay Shares & Stock Brokers Ltd you decide what you want to buy and buy the share at the price you want to and therefore you are in total control of your trades.
What other services can I get by trading shares online?
Internet has brought to the retail investors what was till sometime ago the sole prerogative of large brokerage houses and high net worth individuals. For example at Emkay Shares & Stock Brokers Ltd one can access multitude of resources to arrive at his stock picks. Reliable research with an enviable track record is available free of cost.
An investor can now access Emkay Shares & Stock Brokers Ltd and do his technical analysis, know what other leading brokers think about a company and whether it is a buy or a sell, access live news from international news agencies such as Reuters, read about what the leading CEOs think about the state of the economy and the capital market.
Trading through Emkayshare.com
Can I buy/sell shares of any company/value?
Yes, you may, provided you have the funds in your account or stocks with your depository participant, and the company is listed on any exchange of which Emkay share is a member (currently the National Stock Exchange and the Stock Exchange, Mumbai).
What products will Emkay share offer?
Continuing with our tradition of trust, we are now introducing a transparent and a convenient investment execution facility for the investor community. In the first phase our services will comprise Buying and selling of equity shares for delivery on the National Stock Exchange (NSE) & The Stock Exchange, Mumbai (BSE)
Trading on NCDEX and MCDEX can be done with our subsidiary Emkay Commotrade ltd. be introduced in a subsequent phase.
Later, our service range will be enhanced to include the following:
* Buying and selling of select mutual funds units
* Subscription to initial public offerings
* Public issues and rights issues
These products and services would of course be provided subject to the rules & regulations of Emkay share, Securities Exchange Board of India (SEBI) and the relevant stock exchanges.
Can I sell without having shares in my demat account?
You can only sell shares if you have them in your demat account or if you have purchased them earlier during the same settlement cycle.
Can I modify/cancel my order?
Yes, you can modify or cancel your orders, till the time they are not executed.
What happens when I buy or sell shares that are in no-delivery period?
When the stock exchange puts a specific share into "no-delivery", only trading is permitted in that security. Such trades are settled only after such "no-delivery" period is over. This is done to ensure that investor’s entitlements for corporate benefits are clearly determined.
How frequently can I know the status of my accounts?
Once you start trading, you can know the status of your accounts online at any time.
What is a contract note?
It is a statement of confirmation of trade(s) done on a particular day for and on behalf of a client. A contract note is issued in the prescribed format and manner, establishing a legally enforceable relationship between the member and client in respect to the trades stated in that contract note. Contract notes are made in duplicate, where the member and client both keep one copy each.
What is the mechanism of dispute resolution in case of orders placed over the telephone?
Orders over the telephone can only be placed through designated telephone numbers.We also have a voice recording system to record all orders placed over the telephone.We will be asking for customer ID details before processing the order. Still if any dispute arises, the voice recording would be the final proof for settling any dispute.
Can I track my portfolio at www.EmkayShare.com ?
Yes, Emkay share will soon introduce online portfolio tracking software. This will allow you to track all type of securities: shares, mutual funds and fixed-income paper. The software will also allow for automatic updates of stock prices and the net asset values of mutual funds.
What information and database will Emkay share provide?
We are working to introduce a host of value-added research products for our clients.
* This will include buy or sell recommendations on companies, basic and advanced investing strategies, articles to enhance the knowledge base of the investing community, online databases and tools to help you in financial planning and so on. · There will also be discussion boards where you can debate on certain stocks or investing issues. And even make friends with like-minded investors. · There will be chat rooms where experts will answer investor queries. · There will be columnists who will talk about the stock market and the investing mood in general.We will provide a comprehensive coverage of the capital markets in a phased manner, so that all your investing demands and the need for financial security are met at one place.
* This will include buy or sell recommendations on companies, basic and advanced investing strategies, articles to enhance the knowledge base of the investing community, online databases and tools to help you in financial planning and so on.
* There will also be discussion boards where you can debate on certain stocks or investing issues. And even make friends with like-minded investors.
* There will be chat rooms where experts will answer investor queries.
* There will be columnists who will talk about the stock market and the investing mood in general.
We will provide a comprehensive coverage of the capital markets in a phased manner, so that all your investing demands and the need for financial security are met at one place.
How do I start trading?
You can start trading as soon as you get your trading account user ID and password (Please refer the section on "Opening an Account with Emkayshare.com" for details on opening a trading account with Emkay Share & Stock Brokers Ltd.) provided you have the funds in your account or stocks with your depository participant.
What will be my cost if I trade through Emkay share? (Broking online/offline(including stamp duty and all) + depository charges + Bank Charges)
Account Opening charges
Charges for opening an account w.e.f. Nov , 2006, stand at Rs. 680/-. This is inclusive of legal documentation charges. This amount has to be paid by Cheque in favor of Emkay Shares & Stock Brokers Ltd & Stock Broking Pvt ltd.
Brokerage
Brokerage will be charged at the rate of the higher of 0.5% of the transaction value or Rs. 25/-. In case of a square-off, brokerage will be charged at the rate of 0.15% of the transaction value on each leg subject to a minimum of Rs. 7.50 on each leg of the transaction.
For. e.g.
* If you buy 100 shares of MTNL @ Rs. 190, brokerage charged will be Rs. 95/- (0.5% of 19000)
* If you buy 10 shares of HLL @ Rs. 180, the brokerage charged will be Rs. 25/-
* If you buy 100 shares of HLL @ Rs. 190 and sell 100 shares of HLL @ Rs. 200 in the same settlement, brokerage will be charged @ 0.15% of 19000 + 0.15% of 20000 = Rs. 58.50
* If you buy 10 shares of Castrol @ Rs. 180 and sell 10 shares of Castrol @ Rs 175 in the same settlement, brokerage will be charged @ 7.5 +7.5 = Rs 15/-
Bank Charges
There are no account opening charges. A quarterly minimum balance of Rs. 2500/- will, however, have to be maintained, as per the HDFC Bank requirements. In the event, the customer does not have an HDFC Bank savings account, he / she will be obliged to open one.
DP Charges
There are no account opening charges. However, the DP will levy an annual maintenance charge as well as transaction charges for each trade.
Do I need to have money in my bank account before buying shares?
Yes, you need to have money in your HDFC Bank account before placing an order. But if you have sold some shares earlier during the same settlement cycle then the net sale proceeds can be used to buy shares.
How do I get confirmation for orders and trades executed?
You can check the status of your orders on the website. You can check the price, time and quantity of the orders executed. At the same time, you will also receive e-mail confirmations of the trades executed (trade by trade or one consolidated confirmation at the end of the day). The contract note will be delivered to you either by post or courier. If any errors are observed, you have to bring the same to our notice through an email or write to us within 24 hours of receipt of the contract.
What happens if I enter my trades after trading hours?
To be introduced shortly.
Will there be any buying and selling limits applicants from time to time?
You can buy to the extent of credit in your ledger balance with Emkay Shares & Stock Brokers Ltd or funds in your savings/current bank account with HDFC Bank. You can sell shares as long as you have the necessary shares in your demat account or if you have purchased the said shares earlier during the settlement cycle.
Can I go short?
No, you cannot go short. You can only sell shares that are already in your demat account.
Will the details of my transactions be given to any external source?
No, your transaction details can be accessed by only our select staff, an auditor, the regulatory authority, and an agency of Government of India and under direction of any court of law. As a general rule, transaction details are given to regulatory authorities and government agencies only when they are specifically asked for, and not on a regular basis.
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