If you wish to invest in stock
market or Mutual Fund, you need Demat account. You can open trading accounts
(Equity & Commodity) along side. You can open multiple Demat accounts but
it must be single account with single broker.
There are ways for opening
Demat accounts:
·
Through Banks: Banks like
SBI, Kotak, ICICI, PNB, Canara, HDFC, Axis, Standard Chartered, and many more
act as Depository Participants and provide demat account to its clients
alongside bank accounts.
o
These are called
3-in-1 (Savings+Demat+Trading) accounts.
o
No headache for
transfer of funds.
o
But the
brokerage is comparatively high.
For opening account:
One can go to the bank branch
and do requisite paper work and the account is opened very easily. Additional
charges for account opening may apply as per the policy of the bank concerned.
·
Through Brokers:
o
Full Service Brokers: Old and famous brokers like Angel Broking, Sharekhan, Motilal Oswal, SMC
Global, Karvy, etc are there in the market and people are familiar with these
names.
§ They provide accounts and all
round of facilities of investments like equity, commodity, MF, insurance, IPO,
etc.
§ They provide trading platform,
trading tips, research calls.
§ They have offices with
necessary infrastructural set up for their clients to come and trade or meet
their queries.
§ Besides, they have mobile
versions of trading platforms for advance clients.
§ Obviously, they have fair
logic to charge higher brokerage for providing all these facilities.
For opening account:
One can visit their website,
enter details and open account online. One may ask for call back from the
broker. Besides, one can pay a visit to any of the offices of the broker where
one intends to open account with.
o
Discount Brokers: Coined in 2010
with the introduction of Zerodha, this category has a number of other brokers
like Fyres, Upstocks, Samco, SASOnline, Traderjini and many more.
§ Unlike Full Service brokers
they provide limited no. of facilities with lower charges.
§ Basically they provide good
trading platform, provide knowledge about stock market, encourage trading and
investing by self.
§ They charge is very low.
§ They have mobile app or web
versions of their platform so that one can easily access for the facilities
from anywhere.
For opening account:
One can visit their website,
enter details and open account online. One may ask for call back from the
broker. Besides, one can pay a visit to any of the offices of the broker where
one intends to open account with. Sometimes, you need not even go to the
broker, you can do online.
One thing to keep in mind that
when you buy and sell stocks, your broker will charge you and this is called
brokerage. So, opening account with a broker who charge you high, may eat up
your profit for paying the brokerage.
In this respect you may look
for Zerodha, the first discount broker of India, who have been growing fast to
cross the landmark of having 4 lakh clients because of their low brokerage,
innovative products and tools, good platform and good customer service.
Brokerage:
·
Intraday: 0.01%
or Rs 20/- whichever is lower per executed order.
·
Delivery: Nil
Products and tools:
·
Z-connect,
TradingQnA, Pulse for information and updates.
·
Varsity and Open
Trade for knowledge.
·
Brokerage
Calculator, Margin Calculator etc.
Trading Platform:
Pi for Desktop, Kite for web,
android and iOS devices.
Coin for investing in Mutual
Fund with no charge whatsover.
Customer Service: Multilingual support
across the country, mostly online.
Account opening: Rs 300/- for Demat &
Equity and Rs 200/- for Commodity.