If you are confused to decide whether to open a demat account with a bank or a trading firm, the following details may come to your help for proper assessment:
Banks are now offering 3-in-1 account that includes savings, Demat and Trading accounts in one place. If you have a demat account with a bank:
- You need not transfer the funds from/ to your account for trading/investing.
- Shares are debited / credited to / from your account directly .
- You can avail value added services like research, market news offered by the concerned bank.
- You can trade (Buy or sell) over phone or online. (may be a paid service)
- Long term investors prefer this.
- Some banks offering 3-in-1 accounts are SBI, ICICI Bank, HDFC Bank, Kotak Securities, Standard Chartered Bank, IDBI Bank Ltd, Axis Bank, etc.
This apart, there are two types of broking houses in the stock market i.e., Full service brokers and Discount Brokers.
- Sharekhan, Motilal Oswal, Karvy, SMC Global Securities, Angel Broking, etc are some of the full-service brokers who allow you to invest in various financial products like Equity, Commodity, F&O, Currency, IPO, Mutual Fund, etc. They offer you tips but they charge you high.
- RKSV, Trade Smart Online, ProStocks, Zerodha, Achievers, SAS online, etc. are some among the discount brokers who provide trading platform but charges very low.
I would like to suggest you to open a demat account with discount broking firm and in that case Zerodha will be the best option because of the facilities they provide and the quality of service they maintain towards their clients:
- Education: They don't provide research tips rather they have taken an initiative for education of their clients. They have developed a full Varsity which is a display of 10 Modules of simplified knowledge in stock market covering options trading, fundamental analysis, commodities, technical analysis and many more. These are amalgamation of basic and advanced knowledge free of cost.
- Brokerage: Money matters and whether you are a beginner or a stalwart you never want to spend more. Generally a big part of your profit is spent on paying the brokerage. If you use Brokerage savings calculator and compare the charges of all the other broking houses, you will realise that Zerodha, in this case, is the most cost efficient. They charge lowest in the country.
- All your Equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.
- ₹20 or 0.01% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.
- TradingQnA: This is a community of fellow traders and investors where you can find all your answers regarding various financial matters relevant to stock market.
- Pi & Kite: These are two Advanced Trading Platforms.
- Kite for Android & IOS devices users.
- Pi for Desktop and Laptop on broadband connection.
- Coin: As a cautious investor if you choose to invest in mutual funds, they have Coin which is a platform that lets you buy mutual funds online, completely commission-free, directly from asset management companies.
- Open Trade: To grow confidence initially as a beginner Zerodha has offered this innovative product where you can pick and follow successful traders and receive realtime trade updates from those profitable traders. Though a paid service (not mandatory), this is a great way to improve trading skills.
- Quant : As a beginner you will be in need of the statistical data of your trades and transactions for better appreciation of the account. Quant from Zerodha is a personal trading journal with insights on your best trading periods, most profitable streaks, optimal position sizes, contracts, and more, all intelligently compiled from your past trading behaviour.
- Customer Support: A Multilingual support team of 500+ experts are there to answer your queries over phone and e-mail. Besides, there is a country wide network of partners to offer regional support.
- Account opening: You may open your accounts (Demat, Equity, Commodity) instantly with AADHAAR at a very nominal price of Rs 500/-.