What need to do before get on the trading

Before you get on the trading, we need some practical preparations. About account opening, trading places and your first securities orders on the exchange. Whether you are in the market to bet on the future of a company, get more from your savings or simply want to buy a piece of your favorite football team: Before you buy a stock, you first need a deposit. There, your securities are stored electronically.

Once you are clear about your personal investment objectives ( more information read here ), you can open an account with any normal commercial bank. For example, where you lead your checking account. This is very convenient, but relatively expensive in general.

Commercial banking, direct banking or discount broker

Alternatives to commercial bank are direct banks and discount brokers. Direct banks offer the same products at how ordinary commercial banks. However, they have no branches. The staff advise their clients on the phone. Because they must maintain no offices, you can offer some services cheaper. Even cheaper it is often the discount broker. Brokers are pure custodian banks, which is all about the investment turns. Many of them offer the depot free of charge. Will advise clients there but usually not ( how to recognize a good share advice, find out here ).

DISPLAY

The relationship is simple: The lower the range, the better the offer. And there's a rule of thumb. The more you work on the stock market, the more it pays to choose a discount broker. Be careful when choosing a broker on the trading costs. There are flat rates or the cost to stagger on the value of traded shares ? There are many differences in the small print, which are difficult to compare, especially for beginners. The simplest method is to open an account and watch, how much you pay fees for your transactions. Perhaps another broker better fit your activity profile. Change is always free of charge.

To open an account

At the bank a consultant helps you in person at the establishment of the depot. If you choose a discount broker, you sign up before online and print out the paperwork. then for you to go to the next branch of Deutsche Post. There you have to show your ID and sign it. Then the documents to the Depositary to be forwarded. After a few days the data for the online activation in your mailbox are. The credentials are for safety reasons in a second letter.

In addition to the depot also a clearing account of the custodian bank will be established. If you sell shares, you will be credited the proceeds there. The dividend will be paid to you on that account. Mostly, you can transfer the money from the settlement account only to a specified at the account opening second account - for example, to your checking account. Before you go, you must, of course, the amount of which you want to buy your first shares, put on your settlement account.

Exchanges in India

Bombay Stock Exchange (BSE), together with the Xetra electronic trading system of the most important trading center in India. There are also seven other regional exchanges, including Mumbai, Delhi, etc.ch. Transactions on foreign exchanges are not recommended. Here, high fees and foreign exchange losses incurred. Shares of international companies but are traded in India. To get more information about Bombay stock exchange, read our BSE  Stock tips.