Quick links to Open Demat And Trading Account
- Zerodha - No 1 STOCKBROKER IN INDIA - OPEN ACCOUNT HERE
- Angel Broking - Get FREE Demat Account (Rs 750 Waived) - OPEN ACCOUNT HERE
- 5Paise - Get FREE Demat Account (Rs 650 Waived) - OPEN ACCOUNT HERE
Frequently Asked Questions Regarding Demat & Trading Account in India
1) What is a stockbroker?
A stockbroker is an individual/organization who is a registered member of the stock exchange and are given license to participate in the securities market in place of its clients.
From big banking corporations like HDFC Securities, ICICI Direct, Kotak securities, etc to newer fastly growing startups like Zerodha, Fyers, etc all are examples of stockbrokers in India.
Stockbrokers can directly buy & sell stocks in the share market on behalf of their clients and charge a small commission for this service. However, the commission is minimal compared to the fast trading platform that they offer. Using these platforms, you can buy/sell stocks within minutes using your web/phone while sitting on your home sofa.
2) Do you need a stockbroker to trade in stocks?
Yes, you need a stockbroker to trade in Indian stocks.
You just cannot walk in the stock exchange to buy/sell your stocks. There are a lot of processes involved in the transfer and settlement of stocks for a satisfactory buying and selling experience of the participants. And here, stockbrokers plays an important role, along with the stock exchanges and regulators. Overall, you’ll need a stockbroker to trade in stocks.
3) What factors to check while selecting your stockbroker?
Brokerage charge is one of the biggest factors to look at while picking your stockbroker as an expensive broker can hurt you financially. Apart, the second biggest factor to check is the reputation of the stockbroker. A stockbroker with a long history of a reliable trading platform and good customer service should be preferred.
Besides, you need to look into their web and mobile trading platforms, advisory services (if you are looking for trading advice), customer service and other perks offered by that stockbroker like research reports, trading/investing education, etc.
4) Where should you open your demat and trading account?
If you are looking for multiple services like shares, mutual funds, bonds, currencies, fixed deposits, commodities etc along with research reports and do not mind paying a few extra bucks for additional services, then you should open your account with full-service brokers like ICICI direct, HDFC securities, etc.
However, personally, I believe that if you planning to trade just in stocks (or commodities), opening accounts with discount brokers is more advantageous. They offer a fast trading platform with a low brokerage charge which helps traders to save a lot of money. A few popular discount brokers in India are Zerodha, Angel Broking, Upstox, 5Paisa etc.
5) How to open your demat and trading account?
Opening your trading and demat account is completely online, paperless and hassle-free. If you already have the soft copies of your documents (PAN card, aadhar card and saving account passbook/check) on your mobile/laptop, you can open these accounts within an hour. Simply visit the stockbroker website and apply for an account.
- How to Open a Demat and Trading Account at Zerodha?
- How to Open Demat and Trading Account at 5Paisa?
- 8 Best Discount Brokers in India – Stockbrokers List 2020
If you still have any queries regarding where to open your demat and trading account, feel free to comment below. I’ll be happy to help you out. Have a great day and happy investing!