ravel a lot? Always on the go? Net savvy?

Then an online broker is what you need.

Since an online brokerage allows you to trade over the Internet, you can do so from anywhere in the country. Actually, anywhere in the world.

In the earlier piece, we sketched out how you should find yourself a broker. Here, we discuss online broking.

• How to get a broker

It's all about technology

A big requirement in online broking is that the broker has the technological capability to ensure speed and safety of trading. Talk to people and ask them about their experiences with online brokers.

Do they have problems logging on? Is the connection slow? Is the web site 'down' often? Does it hang a lot?

Are market reports provided on a regular basis? Is stock analysis provided? Do they intimate clients when a new issue is being launched? Are mutual funds sold online?

Browse through their web sites. Find out how easy it is to access information and surf.

You can start by looking at the web sites of some well-known online players: Sharekhan, Kotak Securities, ICICI Direct, 5paise and India Bulls.

• Why you need a stockbroker

Do you want everything under one roof?

Some brokerages offer what they call seamless services -- they offer the brokerage service with a demat account and a bank account. ICICI [Get Quote] Direct, for instance.

HDFC Bank [Get Quote] too offers the three-in-one account. It is a normal savings, a demat account and a trading account with HDFC Securities.

In such 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.

On the other hand, if you have accounts with other banks and don't want to shift, perhaps you would prefer to buy or sell through a reputed brokerage who deals with multiple banks.

If it is not seamless, check whether you can settle payments online, ie instead of writing out cheques for every transaction, will it be possible to transfer amounts electronically to your broker's account through your bank's Internet-enabled account?

• How to get a demat account

Opening the online account

After you have chosen a broker, you have to fill out an Account Opening Form before you can start trading.

There are two parts to the form -- the Know Your Client form and the Member Client Agreement.

The KYC form contains details such as your name, address, annual income, depository account details, bank accounts details, and proof of identity and residence through a certified copy of a passport, driving licence, ration card, voter identity card or a copy of filed income tax returns.

The Member Client Agreement is a legal document between the broker and the client setting out the terms of opening the account. After these formalities are complete, the broker will allot you a unique account code. This code will be fed into the stock exchange terminal every time you make a transaction.

Trading online

In online trading, you will be given a password and ID number that enables you to log on to a special screen which shows all the stock prices and through which you can place your buy or sell orders.

You can access your account and see your portfolio 24 hours a day, 365 days of the year.

You will be able to see at what prices you picked the shares, when you did so, how many you have and what the current rate is.

After you buy or sell, the order confirmation can be e-mailed or you can opt to get the usual contract note to be delivered. Contract notes are the documents that record every sale and purchase of stocks. It is absolutely essential that you collect a contract note for every transaction that you make. This is the proof of the transaction.

Even if you trade online, you may still want to retain the offline option of placing orders on the phone. Ensure that your online brokers offer you the choice of trading offline as well. What if the site is down and you want to buy or sell?

Don't opt for an online brokerage just because it seems savvy. If you are not comfortable with the computer and you really would like to deal with a face, then don't consider the online option.

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