So in my previous article we are talked about what is the difference between Trading & Demat account. So in my this article I’m going to talk about how to open a Trading and Demat account with Broker. So if you are new in market then you definitely thinking about how to open a trading and Demat. What’s the processor of it. How much charges I have to pay. Which documents required for opening a Trading and Demat account. Which Broker is best for me.
If you have these questions in your mind then don’t worry in this article I’m going to clear all those things. So I’m going to divide this article into different sections.
- Types of Broker’s
- Account Opening Charges
- Documents that Required
- My Top Broker’s Pick
- My Verdict
- Types of Broker’s: So basically in Stock Market there was a two types of Broker’s. Which operates differently from each other’s. They have different business models from each other’s.
- Full Service Broker’s: The first and most traditional type of Broker’s is full service Broker’s. So the full service Broker’s provides you all the services that related to Financial Markets. For example they provide you all the facilities to invest in Mutual Funds, IPO, Bonds, Advisory, Equity & F&O. They also have branches in different cities but this is the biggest downside of the full service brokers because too many branches will increased there business running cost. In order to cover the all running cost of the business they charges you higher brokerage. Which is not good for traders profitability.
- Discount Broker’s: The second and now days most famous type of Broker’s is discount Broker’s. So basically in theory they provides you Financial services in discounted and minimal prices. They don’t have branches in every cities because it will increase there operation cost. Discount Broker’s also called online Broker’s. Because they done there all operation through online. But in now days some discount Broker’s also provides the all the facilities that provides by Full Service Broker’s.
2. Account Opening Charges: If you want to open a Trading & Demat account then you will have to pay Account opening and AMC (Annual Account Maintenance) Charges to your broker. Basically account opening charges is different for every broker. So for in this example I’m gonna choose Zerodha. Zerodha is a discount broker & No:1 in my top brokers list. You will have to Pay ₹300 for Trading plus Demat account In equity segment & ₹200 for Commodity account. Zerodha’s AMC is ₹300/year. So basically if you are going to open a account in Equity+Commodity segment then you only have to ₹500 for both segment. After one year you will only have to pay ₹300 for AMC.
3. Documents that Required: In order to open a account with any broker you will have to complete some documentation formalities. So the Following Documents required to open a trading and demat account.
- PAN (Permanent Account Number).
- Aadhaar card.
- Cancelled Cheque.
- 1-2 Passport Size Photographs.
- Bank Account Statement for last 6 Months. Only If you want to activate F&O Segment in your Trading Account. You can also activate your F&O segment later if you don’t want it now.
4. My Top Broker’s Pick: If you are new in stock market then choosing a right stock broker is difficult task. Because in this market there are hundred’s of broker’s to choose. But choosing a right one which offers you better Customer Service, Best and easy to use Trading Platform and specially Low Brokerage Charges is not a easy thing.
When I’m Beginner in stock market firstly I opened a Account with Sharekhan but after few months I shifted to Upstox because Sharekhan brokerage is quiet high. Then after few months then I decided to shift with Zerodha because Upstox’s trading platform is not that good when its compare with Zerodha. So after these two changes & learned from my experiences now I have a account with Zerodha.
- So my first pick is Zerodha. They offers you best trading platform for desktop, Browser & Mobile. They have lowest brokerage possible & Zero brokerage on delivery trades. They have other services like Zerodha Coin which is India’s First Direct Mutual Fund service. In direct mutual funds you will don’t have to pay any commission to your broker. They have Zerodha varsity which is trading education platform. The only downside that I found with Zerodha that they not offers you to invest in IPO. Otherwise Zerodha is good for all your trading & Investing needs.
- My second pick is Sharekhan only because if you want to invest in IPO market than you will have to go with a Full service broker. Because Sharekhan allows you to Invest in IPO market.
5. My verdict: Opening a account with a broker is a very easy task. Whichever broker you choose the only key to be a profitable in stock market is your hard work & dedication. You will have to starts from learning basics things from how to place a order to advanced things like options trading etc. If someone told you It’s a easy way to earn money then stop reading this article & forget about trading account. If it is that easy than everyone is start doing it. You will have to work hard with your all dedication. Don’t ever take any advisory service always learn things yourself & then Invest it. This my blog & Zerodha Varsity is nice place to start learning from basics to advanced. From last 3 years in investing & trading in stock market. After 3 years its a still long way to go.
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