How to Purchase Shares Online in 2024

August 30, 2021 Trading 6 min read

Why Should We Buy Shares?

Buying shares means owning a small part of a company. It can be a good investment because shares can increase in value over time, and some companies pay dividends to shareholders, providing a regular income. It’s like owning a piece of a business and sharing in its profits. Additionally, investing in shares can serve as a hedge against inflation and allow investors to participate in the growth of the economy. However, there are risks, such as the value of shares going down, so it’s important to do research and understand these risks before investing.

How to Buy Shares

The stock market is a good avenue for investment, but there are risks involved. You must know your financial needs, wants, and risk-taking capacity before venturing into the stock market. Once you have done your research and have picked suitable companies to invest in, you need to buy the shares. When you pick shares, you barely make money off trends and rallies that are not foreseen or understood. But when you pick companies, there are anticipated profits and fewer risks. 

So that brings us to, how do you buy shares?

In this article, we tell you how to buy and sell shares online.

But first, let us understand how investors purchased shares offline before the internet offered faster and safer methods.

Now, shares have been purchased and sold for over 300 years. Earlier, if you wanted to buy a share, you would have to make a telephone call or visit your broker’s office. Moreover, shares would be physical documents of certifications affirming that you had indeed bought shares. These would be sent via post and would sometimes take months to arrive. Nowadays, you can pull all the tricks of the stock market online, including shorting, margin buying, and more.

Back in the day, when the internet wasn’t a thing, the stock market was an offline place. Although we have offices for the National Stock Exchange and the Bombay Stock Exchange, most of the trading happens online. Online brokerage houses have emerged to facilitate quick and secure trading activities, allowing investors to buy and sell stocks from the comfort of their homes or offices. This shift to online trading has made investing in the stock market more accessible and convenient for a wider range of investors.

Here’s How to Buy Shares Online in India

1) Find the Right Online Broker App

There are many that you can pick from. However, with most brokerage apps there are hidden charges, which can trickle into your profits. To make the most of your stock market acumen, you need to start with choosing the right broker. 

TradeSmart is an all-in-one online platform that helps you choose the right plan based on whether you are going to invest or trade. All you have to do is register your Demat account with your TradeSmart profile. 

This brings us to the next point.

2) Get a Demat Account

A Demat or Dematerialised account is your compulsory requirement for online stock market proceedings. To start your Demat account, you need: 

  • PAN details
  • Identity proof
  • Address proof
  • Cancelled cheque
  • Photographs

Once you have submitted these, your credentials will be processed and verified. TradeSmart cuts down the processing time to within 24 hours if you don’t already have a Demat.

3) Fund Your Trading Account

To fund your trading account, you can transfer funds using online banking, NEFT/RTGS, UPI, mobile wallets, debit/credit cards, or by depositing a cheque/demand draft. These methods offer convenience and flexibility, allowing you to quickly add funds to your account and start trading. It’s important to choose a method that is secure and meets your needs, while also checking for any associated fees or charges.

4) Place Orders

Once your Demat is up and running, you can see your positions and holdings, and also purchase shares listed on the NSE and BSE. You can pick the shares you want to purchase. You can purchase at the market price or you can set a price of your choice. When the number of shares you have demanded is available at the price you have entered, the transaction is complete and the shares get transferred to your account in T+2 days. 

5) Monitor Your Investments

Monitoring your investment involves regularly checking the stock prices of your investments and staying updated on the financial performance and news related to the companies you have invested in. Setting up alerts for price changes can help you make timely decisions. Additionally, staying informed about market trends and economic indicators can help you make informed decisions about buying or selling your stocks. 

6) Sell Your Shares

When you’re ready to sell your shares, log in to your trading account, select the stock you want to sell, and place a sell order specifying the quantity and price at which you want to sell. You can choose to sell at the market price for immediate execution or set a limit price for the sale. Review the order details and confirm the sell order to complete the transaction.

7) Withdraw Funds

If you decide to withdraw funds from your trading account, you can do so through the broker’s website or trading platform.

Factors to Consider When Buying Stocks

Now that you know how to buy shares, let’s look at some factors to consider before you invest your hard-earned savings in the stock market.

  1. Understand how to read a stock chart:

The stock chart of a share can help you see how the share has performed over its lifetime. It can give you an idea of when it peaked and when it suddenly declined. By relating this information with relevant news and developments can help you understand how to time your share market investments.

  1. Choose your shares carefully:

The share market has over 7,500 listed shares. We can’t go buying them all. Most investors stick to purchasing NIFTY 50. However, not many of them know that NIFTY 50 is just a term given to the 50 most traded equities on the NSE. However, this in no way signifies a strong company or a long-term value-generating model. Do your research and do not be afraid to invest in small-caps or mid-caps. Always read up about the company you want to invest in. Only invest in companies that you understand and can vouch for.

  1. Be patient: 

You know how they say Rome wasn’t built in a day, and so it is true for the share market as well. Even the best companies may hit a bear period where they just do not appreciate in share price. This does not mean the company is bad or you should get rid of that share. Being patient in the stock market always pays off in the long run.

  1. Be regular:

A lot of experts in the market will tell you to learn how to time the market. However, this exercise is futile because no one anywhere is capable of precisely timing any slump or rise. While we cannot time the market, we can inculcate financial discipline and be regular with our stock market investments. 

  1. Appreciate small wins:

It is OK to start humble and slow. Remember that you can also lose a lot of money in the stock market, and this is why you should only invest the surplus money you have at any point.

What Stocks to Buy?

Deciding what stocks to buy depends on your investment goals, risk tolerance, and market analysis. Some common approaches include:

  1. Research and Analysis: Conduct thorough research on companies, industries, and market trends. Look for companies with strong fundamentals, sustainable competitive advantages, and growth potential.
  1. Diversification: Diversify your portfolio by investing in a mix of stocks from different industries and sectors. This helps spread risk and minimize losses from any single stock or sector.
  1. Dividend Stocks: Consider investing in dividend-paying stocks if you’re looking for a regular income stream. Look for companies with a history of stable dividends and strong financials.
  1. Value Investing: Look for undervalued stocks that are trading below their intrinsic value. These stocks have the potential for price appreciation when the market corrects its valuation.
  1. Growth Stocks: Consider investing in growth stocks of companies with strong earnings growth potential. These stocks may be more volatile but can offer higher returns over the long term.
  1. ETFs and Mutual Funds: Consider investing in exchange-traded funds (ETFs) or mutual funds for a diversified portfolio with exposure to various stocks and sectors.

Ultimately, the best stocks to buy depend on your individual financial goals and risk tolerance. It’s important to do your own research or consult with a financial advisor before making any investment decisions.


In conclusion, determining what stocks to buy requires careful consideration of your investment goals, risk tolerance, and market analysis. Whether you’re looking for dividend income, growth potential, or value opportunities, conducting thorough research and maintaining a diversified portfolio is key. By staying informed and adapting your investment strategy to market conditions, you can make informed decisions and build a successful stock portfolio over time.


Do you need a Demat account compulsorily?
Yes, to participate in the stock market one must have a Demat account.

Are share market investments safe?
The stock market is volatile, but investing in companies that are profitable and sustainable pays.

How are stocks bought?
You have to place an order on your online brokerage app. Once the share reaches your desired price and is available in the desired quantity that you have entered, it gets bought. 

Can I lose all my money investing in shares?

Yes, investing in shares carries risks, and there is a possibility of losing some or all of your investment.

How long does it take to buy shares online?

Buying shares online is usually a quick process that can be completed within minutes once you have a trading account set up.

Can I sell my shares whenever I want?

Yes, you can sell your shares at any time during market hours, provided there is liquidity in the market for the stock you own.

Are there any taxes or fees associated with buying shares online?

Yes, you may have to pay brokerage fees, taxes on capital gains, and other charges associated with buying and selling shares.

Can I buy shares online if I’m not an Indian citizen?

Yes, non-Indian citizens can buy shares in India by following the necessary regulations and using a registered brokerage service.


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