With greater net penetration in even C class cities, broking and fund houses are seeing a marked upswing in online trading. More and more investors are logging on to the internet to deal in stock markets.
According to data available with several broking houses, the number of investors opting for online trading has risen three-fold to 1.3 million in the last two years.
However, Ganesh Prasad Prahdan, director, Sajag Securities, points out to the total daily transactions on NSE, contribution from Pune is only 5.1 per cent. Out of this 1 per cent nearly 15 per cent transactions are done through online trading, he said.
"Online traders now enjoy a share of around 10 per cent of the daily turnover on National Stock Exchange. The share has gone up from just 4 per cent in 2004," said A A Sarma, vice-president, IDBI Capital.
"The volume of transactions on NSE is about Rs 7,000 crore (Rs 70 billion) per day out of which nearly Rs 700 crore (Rs 7 billion) worth of transactions are done by online investors. Broking houses are expecting the share to grow up to 25 per cent.
"The proportion of online trading to total volumes in Korea is 27 per cent while in United States, nearly 35 per cent transactions are online," Sarma said.
"Retail Investors have started to prefer online trading, as it is a democratic medium. It gives the investor ready access to the market," he added.
An investor enjoys a complete control of his or her investments and gets the benefits of a real-time transaction. The three-in-one accounts that links up online trading account to your savings banks account and demat account for easier transactions have started capturing a majority share of online trading accounts," he added.
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