Best Demat and Trading Account in India-How to chose it?

In my earlier post, I explained you about what are Demat account and Trading Account, what is a difference between them and how both are necessary for investment in the stock market. In this post, I try to explain you about how to choose best Demat Account and Trading Account in Indian Stock Market.

Best Stock Trading and Demat Account in India

Below points are very much necessary before you proceed for stock trading.

1) Never follow brokers who appear on TV or print media-It is strict no when you decide to trade or invest in the stock market. These experts usually are the brokers, who never tell you to STAY AWAY from the market. However, they always insist you to trade. Sometimes they suggest you to buy and sometimes short sell. In the end, the result will be more trading means more earning for these brokers. Velocity or frequency of trade earns broker. However, it diminishes your chance to create wealth. Hence, adopt a strategy which best suits you.

2) Never pay for packages to get HOT TIPS-There are many firms which offer such services. They lure you by sending few messages and make you believe that their tips actually work well. However, if they are so experts then they may be richest on this earth. Their motive is not to make you rich, but to earn money by selling packages.

3) Volatility is inherent-Whether you buy Infosys or any cheap stocks, volatility is always there. Therefore, be ready to adjust your mind to this volatility. You must have guts to bear this volatility risk. Your broker suggests you the target price of 20% or 30% in a day or two. However, he never suggests you the negative return of 20% to 30% also possible.

4) There is no such theory or algorithm, which is perfect-You find many theories and algorithm, which these experts show you while trading. However, mind it, none of them are perfect. They may provide you the hint, but not surety. Hence, adopt your own theory or algorithm, which works for you.

5) Trading makes you mad-Yes, after a few days of trade you start to watch business channels eagerly and at the same time waits for market opening at 9 AM. Holidays to market will be a frustration for you. Hence, trying to control your emotions is very much important than executing the orders of buy/sell. Controlling your behavior is more important.

6) Stay away from Margin Trading-Initially you buy the stocks equal to amount available in your trading account. However, after a few days of trading, you start to explore new ideas to make easy money in a short span. Do remember that, margin trading need a strong heart to bear losses. It is good when the trade ends in positive. It is a disaster if it reverses your position. Your broker insists you to go for margin trading. However, he never tells you that in case of short of the margin he sells your stocks without any second look.

7) Manage a Dairy-Before proceeding trading, first have a habit of managing dairy. Before going to buy and sell, make it a habit to note why you want to buy/sell a particular stock. After a few days, you look back then you notice the mistakes you did in that trade.

Now, let us look at how to choose best Demat and the trading account for you?

1) The cost of trade or brokerage-This is the competitive world. Hence, there are brokers who lined up to provide you damn cheap broking cost. You have to decide which broker or trading company you want to open demat account with, for the purpose of your trading or investment in stock market. If it is trading purpose, then bargain with a broker. However, if you are an investor then I think no broker will reduce brokerage. Because brokers earn from your frequency of trade. In delivery based trading, the frequency of trade will be lower.

There are mainly two types of trading.

  • Intraday Trading-In such types of trading, you buy stocks and sell them on the same day. This is also called as Day Trading. In such trading, you don’t pay the full value of what you buy. However, some % of the value you bought will be deducted from your account. For example, if you buy XYZ company stock of 100 quantities for Rs.10 each then the total value will be Rs.1, 000. However, you will not pay the full Rs.1, 000, instead you pay some % of this Rs.1, 000 (Usually, stock exchanges of brokers fix this.). The profit or loss will be on 100 quantities. However, if buy/sell stocks then you have to sell/buy on the same day within a market closure. Otherwise, your broker sell/buy before the market closes.
  • Delivery Based Trading-You buy stocks by paying the value of your buy. For example, if you buy XYZ company stock of 100 quantities for Rs.10 each then the total value will be Rs.1, 000. You pay full Rs.1, 000 and buy the stocks. Such stocks will be available in your Demat Account. Such stocks will be delivered to you within 2-3 days of buying. You have the option to sell such stocks at any day or keep them for life long.

Usually, first-year brokers will not charge you on Demat account. This they call it a FREE ACCOUNT. However, later on there will be yearly charges. Hence, check the yearly Demat account charges at first. In my view, there will not be so big changes in this charge. This is also called yearly maintenance charge.

Apart from this, the broker charges you on each buy/sell and delivery of stocks. This buy/sell brokerage ranges from 1% to 0.01%. Check whether this charge applies to both side or one side (i.e. Charges while buying and selling or only while buying). Few brokers offer a fixed amount like Rs.20 per trade (irrespective of volume). So check the percentage of brokerage and the applicable minimum brokerage in Rs. You have to concentrate on these expenses if you are an intraday trader. If you buy stocks for delivery based (holding stocks in Demat Account), then brokers charge on such delivery of stocks. This again ranges from 1% to 0.25%. Usually, delivery based charges will be higher than the first said Intraday charges.

Therefore, you must concentrate on yearly Demat Charges, Intraday charges (whether applied to ONLY buying or for buying and selling) and delivery based charges. There is no strict rule that each broking firm must provide this much of minimum brokerage. Hence, they act in a competitive mind. Better to bargain for it.

2) Software and ease of use-This is the second point, which you have to look for. Usually, all brokers have their own inbuilt software, which you can download it. However, you must check some reviews to know more about this. Along with that, check their web-based application. Ease of use is very much important to understand and act immediately in day trading.

3) Day trading Square off Timing-When you do intraday trading, then at the end of a day you have to square off the position. If not, then the broker initiates himself. Hence, check the timing of such initiation. It is usually before few hours of market closure. Therefore, check whether positions will be squaring off at 2.45 or at 3.15.

4) The reputation of the broker-There are so many brokers in India. Also, due to huge competition, they offer you very cheap brokerage. But they may act against a law or may indulge in some unlawful activities. Hence, select a broker who has a good reputation in the market. Never run behind a cheap broking firm.

5) ServiceWhen you need some help in placing orders or some other activities like a change of bank, address, or nominees, then you need the help of brokers. Hence, check for their service. How quickly they respond to you and resolve the issues. I know many brokers, who, after opening account never look at you when it comes to clarification of issues.

Apart from these types of brokers, Banks nowadays offer you 3-in-1 account. Your banker offers you savings account, Demat Account, and trading account in one place. This is more convenient as you can manage all your trading activities in one place only. Usually, brokers offer you trading and Demat accounts, but not a bank account.

Advantages of 3-in-1 Accounts

  • It is easy for you to manage your trading, Demat and bank account all at one place. Hence, it is convenient to manage.
  • Usually, nowadays banks offer you many types of investment avenues like stocks, bonds, FDs, mutual funds and many more. In such a situation, you find it easy to manage at one place.
  • No irregularities with your trading or Demat account. Whereas, brokers can manipulate your account.
  • It is best to have a 3-in-1 account for long-term holding of stocks and one more trading and Demat account with a broker for a trading purpose. Hence, one account with Bank for long term investment and for trading an account with a broker.

Disadvantages of 3-in-1 Accounts

  • Charges usually at the higher end.
  • They may insist you to manage a minimum balance in a savings account. This is not the case with a broker.
  • Usually, account opening will not be free.

A few points to caution you about Demat and trading accounts-

1) Whenever you receive the statement, please make it a habit to check it for transactions done.

2) Never keep your account idle. Freeze it, if you feel not operate for next 4-5 months or more.

3) Monitor your holdings regularly.

4) Never share your user name and password of your trading/Demat account with others.

5) Finally, I am a fan of EQUITY INVESTMENT but not TRADING. So I suggest you to go for INVESTING but not TRADING.

186 Comments

  1. Its a good informative article. Want to start your investment journey and don’t know where to begin? Start with opening a demat & trading account. Choosing the right broker to assist you with this is equally important. To understand what factors to look at to pick the best Demat & Trading account, click here

    Reply
    • Dear Rakesh,
      Before doing all these, first try to understand your BEHAVIOR and RISK.

      Reply
  2. I am a long term investor with a budget of 10 lakhs. My wife has a Kotak Securities account which is not easy to understand. Their Bank statements and Ledgers are complicated. Kindly suggest me an alternate Banker for opening a 3 in 1 account, whose account is user friendly and manageable by layman investor. Charges doesn”t matter.

    Reply
      • Many thanks. I have liked your honest and straight answers. Will try ICICI DIrect. By the way, how is Angel Broking whose office is near to me? What are the pros and cons of the non Banker Demat account?

        Reply
        • Dear Shrikant,
          I you are looking for 3-in-1 account, then how can Angel Broking fit there?

          Reply
  3. sir, can u tell that the charges like STT and transaction charges are same for all brokrage firms

    Reply
  4. Sir I want to step in this market please suggest me the first step what I have to do as I don’t have no knowledge about stock market, shares, trading, demat, I want to start on a small amount. Please suggest me the best

    Reply
    • Gautam-Then first read understand and then jump. BLIND FOLLOWING OF SO-CALLED EXPERTS is dangerous to you.

      Reply
  5. sir,

    i am a bit confused about opening Dmat account in between SBI cap and kotak securities.
    which way to go???
    pl guide.

    Reply
    • with all the criteria mentioned above in the post,
      just can not compare the two.

      you have already answer this question,but m simply unable .say without experiences how to say about software and ease of use before opting for the services?

      as charges are concerned, i am in favour of opening a BSDA first.

      pl guide.

      Reply
      • Nirmal-If you want to experience the software and ease of use, then better to try one and if not satisfied then shift to different.

        Reply
        • sir,

          some of my friends are having more then one account .
          one for say,ease of use like kotak . second is for, say less brokerage like zerotha,third is for say,BSDA sbi cap.

          is it a good thing?
          can one account be good enogut for all purposes??

          pl guide.

          Reply
  6. Good afternoon sir,
    Here I want to know which full time broker is advisable for their research prospects and their tips
    I am invest as per my own research only but for that to get good research platform which one is best
    Motilal Oswal
    Sharekhan
    Angel
    Pls suggest me to choose one form above three I want to use them only for research analysis I will use zerodha for trading

    Reply
    • Jay-Relying on BROKER research for your INVESTMENT is one of the biggest mistakes.

      Reply
      • I know sir but I will always go after my own research but I want to know which one is good for providing research platform among the motilal oswal share Khan and Angel please recommend right one.
        I want only research platform

        Reply
  7. Good morning sir,
    Here I want to know which full time broker is advisable for their research prospects and their tips
    I am invest as per my own research only but for that to get good research platform which one is best
    Motilal Oswal
    Sharekhan
    Angel
    Pls suggest me to choose one form above three I want to use them only for research analysis I will use zerodha for trading

    Reply
    • Jay-If you are the INVESTOR, then never rely on the calls or research given by any brokers.

      Reply
  8. Sir,
    I want to open a demat account.only investment purpose. From penny savings that I make.say 3000 /month.when I googled about good/best demat account broker, all are praising zerodha or some random one. It seems to me like paid article. What do you think about SBI cap ??? I have savings account with it. Should I go with or consider kotak ?? Not a big fan of technology or don’t want any advice as you mentioned.

    Pl guide me, pl suggest any one.

    Reply
    • Nirmal-if your goal is LONGTERM INVESTMENT, then why you worry about cost? However, if you are trader, then think of discount brokers like Zerodha.

      Reply
      • Sir,

        The goal is simple and obvious like serving future education cost of kids, buying house etc.

        Why I am so concerned is, say everyone is so talk about zerodha or tradegini,tradebells, flyers etc, they looks like paid article.

        No one talk about SBI cap aur any other psu bank offering demat account, even for investors.

        Why sbi cap is so bad??

        I don’t have ln large sum to put ,but then where to go?

        I have stated putting money into mutual funds also.

        Just wanted to invest in direct equity also.

        Pl guide. Thanks.

        Reply
        • Nirmal-Do you have enough expertise to analyze and select funds? If you are investor then as I already said go with broker of your comfort. I am neither for or against any brokers.

          Reply
  9. sir, If I have trading account with one company but the demat account with other. Then their will be extra charges by trading account company to transfer the shares to my demat account.

    Reply
  10. I wish to open a Demat and Trading a/c (with Zerodha).

    Most importantly I wish to trade actively and report resulting profit or loss as Business Income or Loss in my ITR returns.

    In view of the above, kindly advise whether
    1) Current A/c is needed or savings account would suffice.
    2) Whether Trade License would be needed
    3) Whether Enrolment for Profession Tax is reqd.

    All of the above questions basically relates to my objective in reporting my Profit or Loss as Business Income or Loss.

    Kindly resolve my doubts.

    Reply
  11. sir , is it necessary to have demat account and trading account for investment in bonds/debentures/govt securitie/derivatives

    Reply
    • Maninder-It depends on the instruments you are investing. Like for derivates, you must have a trading account and for few bonds and debentures, they especially mention whether the allotment is physical or demat only. Hence, it is hard to say so.

      Reply
      • as various investment options shown on bse nse websites like desrivative, bonds, govt security . is all brokers provide investment facility for all options shown on bse/nse website or it is depends on each broker it self.

        Reply
        • Maninder-Obviously they provide many investment options available in NSE and BSE. But choosing the best option suitable to you is the RISK and KNOWLEDGE you must have.

          Reply
  12. Which is the best demate account provider for RGESS ? No use of ELSS becuase sec 80C limit already full.

    Reply
    • Ashvin-You can go with anyone as your only requirement is investing in RGESS.

      Reply
  13. sir is sbi cap securities is good for trading?? means its customer service, software utility and handling, brokarage etc.
    actually i m looking for a good PSU bank demat service for a safe and secure trading for a long period.. pls can u guide me about this matter??

    Reply
    • sir can u guide me about this matter??

      Reply
    • Choudhury-All are equally safe and unsafe. First understand whether you want to be trader or investor, then decide the demat and trading account.

      Reply
  14. Basavraj sir, i want to start trading in share market, but my my limitation is 1000 to 2000 rs per month… Only.. so plz suggest me where i want to open a demat account… Because.. all broker provides lots of… I m confused…

    Reply
    • Vishal-I already explained in detail. Do you still have confusion?

      Reply
  15. Hi,

    Want a open an account for buying shares and i’m new. I want to do intra day and keep share for long term. Could you please help me which to open an account from below share brokers. Which is BEST with less chrges??
    1) Share Khan
    2) Fyers
    3) Zerodha

    Reply
      • I did some Google, read some blogs and yours and came to know these are top 3. I don’t have idea on trading. I am completely new to this.

        Reply
        • Sangu-Then check with all three, and they finally go with one. You already shortlisted 3 among 1000+. That’s a good work.

          Reply
  16. Plz guide me, I want to invest 3000 Rs PM. So I confused to invest in sip,share or ppf account. Plz guide me how can invest. My thinking is 2000 in sip and 1000 for ppf

    Reply
    • Shrinivas-Without knowing your goal tenure, it is hard for me to guide.

      Reply
  17. Hello Basu,

    Greetings!

    Please suggest, i am interested in doing only Intraday Trading (occasional Delivery) in Equity, so which trading account should i go for? i already have ICICI Direct Demat Account but the brokerage is high.
    I am looking for three things.

    1) Low Brokerage and no hidden cost
    2) Security of the account
    3) User Friendly Interface of the web portal and the software (if there is any delay or freezing issue).

    I have selected 2 brokers i.e Zerodha and Fyers, can you suggest which is best in terms of security, i have few question regarding the same.

    1) How safe is it to keep the stock and money in the above mentioned demat account?
    2) Can they access my account or do any unauthorized transaction?

    Thanks in advance

    Best Regards,
    Shivesh

    Reply
    • Shivesh-Go with Zerodha. They are safe but don’t keep idle money. 1) Keep the money which required for transaction. 2) It may happen with any brokers, that’s why there is a SMS and email alerts. Hence, you no need to worry.

      Reply
      • Thank you for your suggestion on last query i have i.e.

        Does Zerodha interface has any glitches, coz i read that it hangs a lost which result in loss of money due to delayed execution?

        Thank You

        Reply
        • Shivesh-I am not sure about this. You can discuss the same with that broker personally.

          Reply
  18. If you are deciding to open a DEMAT ACCOUNT go to the official web page created by every company and you can see if all conditions required by you are present there. You may consequently look for any of them and make your investment.

    Reply
  19. Sir,

    Please guide me which one is the best place to open DEMAT account for trading as well as investing.

    Reply
    • Bharath-I explained the tips. Read and accordingly, you can choose the one.

      Reply
  20. Sir,
    I want to open a new dement account. So I want ur guidens . I not a salary base person, I m a simple student . sir I want to know each and every right and wrong point abt it. I have account in SBI bank. I talk to many agents and every one is talking like a businesses purpose like one person said
    1:-u have put 25000rs in ur demet acct and buy some shares for the activation purpose…!!
    2:- u have to put 10,000 rs in ur acct and than u can credit ur balance after 2-3 days but u have fix 1000rs in ur acct. From iifl.
    Like that every agent is giving their requirement..

    So pls help me to make a free demet acct with proper guidens, for a life time I should not pay any charges to them ..

    I want to make this acct for knowledge and learning purpose.. I thing , I should also get this kind of experience and proffessional knowledge.

    Thanking you,
    Ashish Kumar
    (08000381560)

    Pls help me sir…!!!

    Reply
    • Ashish-1) It is wrong. He is claiming to earn from your trading. There is no such rules which is mandatory to put some money to open demant account.
      2) Don’t heed any agents. You ask them to give their rules and regulations in WRITING.
      It requires lot of learning instead of your eagerness to open demat account. First try to understand the basics, then go ahead. If you have SBI account, then even you can open your demat and trading account with SBI itself.

      Reply
      • Sir ,
        Thank u so much sir ..! Sir my father also doing trading from many years He’s also a good knowledgble person and now bcse of his burden of work he stop for some time ..! So he’s there with me to guide me always but he wants me learn shorts things by my self . so u just help me in making my demat account from free charges and for life time . just I m going to buy small shares for knowledge and learning purpose . I hope u understand this things.

        Reply
  21. dear basavraji, i am ready for stock market after some initial study about market. basically i got from books , sites , blogs, and reviews. but i would like to thank you and appreciate you for the most comprehensive knowledge i got from your blogs and question and answers. dear kindly suggest me shall i open my account with icici, zerodha, sharekhan, sbi or angel broking. my priority is security of my account first, secondly brokerage charges, and last accessibility.
    thank you.
    dr amin firdosi

    Reply
    • Amin-All the brokers you named will provided you the features which you are looking for. But Zerodha is cost effective.

      Reply
      • But you have talked about 3 in one account, and zerodha doesn’t provides so?

        Reply
        • Amin-Three-in-one account will be offered by banks only but not from Zerodha or any other brokers.

          Reply
  22. I have account in HDFC bank and would like to start SIP(long term investment). So i am planning to open demat account to start SIP through HDFC bank. Reason to handle all in same platform.

    But if i have to choose demat account between HDFC & Kotak Mahindra Bank. Please suggest which one is better in term of charges and user friendly.

    please suggest.

    Reply
    • Sagar-Investing through Bank is costliest and also demat is necessary for investing in MF?

      Reply
      • I am confused if it is necessary to open demat account to invest in MF through SIP.

        My main concern to check the status of my account through same portal.

        Can i directly invest in MF and check status after login with netbanking of bank account.

        Reply
        • Sagar-Use MF Utility. You can see your MF investments ONLINE. Also, do you think such frequent review of MF necessary?

          Reply
          • Dear Basavaraj,

            Thank you so much. I studied about Mf Utility and found very useful and cost effective.

            Need to study more if you have any link for this please share.

            Reason to investing through bank is reliability as i am beginner and have no idea about broker an all.

            Thanks Again!

            Reply
            • Sagar-Banks nowadays are like typical sellers. So remove that wrong belief that they are RELIABLE. You can visit MFU portal. You find all information about the same.

              Reply
  23. Namste sir.thnx for nice information. Muhe stock me short term k liye investment karna he.I mean muje daily trading nai karna par weekly ya fir month me 6-7 baar ase karna ho to kon si brokerage house select karna chahiye.jaha par me short and long term me trading kar saku.plz help me sir.

    Reply
    • Kirti-I explained the whole process in above post. Based on that you have to choose.

      Reply
  24. Manoj-I am not sure of this option. Check with NSDL before opting for this option.

    Reply
  25. Great points Mr. Basu – very helpful insights!

    I do have a 3-in-1 account with Kotak Securities – I must say that their website is HORRIBLE and is NOT SUITABLE FOR HUMAN USE, unless they are financially savvy. I have no clue of what I have bought and sold, and what is the amount I have in my account. Your transactions will take days to appear in their Ledger. The suck list goes on and on and on….

    Can you please suggest a good online platform that is user friendly for a common man to trade and see what has happened? Thanks in advance.

    Reply
  26. I needed to know if we can buy mutual funds online via ICICI, MOney Control etc without having a Demat a/c? Your previous comments mention we dont need a Demat a/c for buying MF. If yes could you please explain, thanks in advance

    Reply
    • Bhavesh-Yes, you can buy funds using ICICI (But not with moneycontrol). However, buying through them is costliest way of investment.

      Reply
  27. Thanks you so much Basu ji for all the details. If I close a DP account and transfer Tax fee Bonds from old to new DP account then how will my annual Interest be credited?

    Reply
    • Aashish-It will be credited to bank of which you have given while investing. DP account is meant for holding the bonds. But it does not meant to receive the coupon.

      Reply
  28. BASU.. You are the light in the dark.. Thank u for all your info..

    Reply
  29. sir i am working in bank .i have cleared jaiib caiib exams also.i want to became financial planner for people,invest there money in mutual funds.sir can i do this? how to do this…what are exams i have to clear,certificate? whats scope of earning?

    Reply
    • Preetam-For your all questions, I can’t answer here. You can go through FPSB portal for more information.

      Reply
  30. Hello sir, thanks for valuable info.. But I am very new for all these.. Yesterday I opened my demat account… It’s free for one year… I am very excited and at the same time confused about what and how m a gonna do this… I have no knowledge about all this… Will you please help me or guide me… Atleast to learn all this at initial stage… Which shares I shall buy for the first time.. I am also interested in intraday.. Please guide…. Thanks

    Reply
  31. hello Sir,
    i really liked the article its very informative…one question remain in my mind even if you have thrown light on it, its just to clarify my doubts ….i have Saving bank account in SBI; where my salary gets deposit monthly and regularly….i want to be INVESTOR IN EQUITY ‘STOCKS’ for long term (10 to 15 yrs)….
    1. Do i need to open Demat & Trading account BOTH?…Or only DEMAT A/C is sufficient?….
    2. Which a/c will you please suggest me for long term investment in STOCKS

    Note: i have done Mutual funds SIP in equity already

    Awaiting your kind reply..thanks

    Reply
    • Prakash-1) Yes, you need both. Because trading account is to buy and sell and demat account to hold such bought stocks.
      2) I already explained above.

      Reply
      • Thanks Sir…

        Reply
  32. HI SIR,
    I WANT TO DO INTERADAY TRADING SO PLZ SUGEST ME WHICH TRADER OR WHICH DEMAT SHOULD I OPEN

    Reply
    • Lalit-It is explained above. I can’t chose any specific one. It is more of your comfort with broker and the service they provide.

      Reply
  33. I want to talk you through call becoz I don’t know even
    abcd of stock exchange.

    Reply
  34. Hello sir,

    I have been looking at investment options for tax save (such as post office’s NSC, RGESS)

    Which one is the best one to go with, I need to invest for build House in 5 -7 years or so.

    Thank you for your valuable comment.
    Pradeep

    Reply
  35. morning sir,
    i am investing in sbi mf having folio no and with kyc complied. i track my units of mf online having user id and pswd in sbi mf website. my question is may i invest in other fund houses mf online ? with same kyc complied. or do i need again kyc with other fund houses to invest in mf online. also tell me how to invest in other fund houses mf online…..

    Reply
    • Bharat-You can invest in other found houses using the same KYC. No need of any further KYC process. You have to create an online account with them. For that you have to first create folio by investing offline. Otherwise, you can use the platforms like FundsIndia (for regular funds) and Investza (for direct funds) ONLINE.

      Reply
  36. Hi Basavaraj,
    I want to invest in SIP, is d-mat account require to invest in SIP? Can you please suggest on this

    Reply
    • Ramesh-SIP is the way of investment but not the product. But you mean to say that mutual fund investment right? Not required.

      Reply
  37. Hello,
    I am a beginner to invest in mutual funds. I just want to invest in mutual funds and ‘Rajiv Gandhi Equity Savings Scheme’ (Tax saving).

    So could you tell me, which demat account is better and has less charges based on my requirements ?

    Reply
    • Saket-Who told you that demat account required to invest in MF? You can invest in mutual funds without demat account.

      Reply
      • Actually I have to invest in ‘Rajiv Gandhi Equity Savings Scheme’ as well so thought of I will buy MF from there only. Also if I buy/close mutual funds from outside then I have to go to there specific place and need lot of manual work.

        Reply
        • Saket-Contact any mutual fund adviser of your area. He will do this for you.

          Reply
  38. For invesment, KARVY is better ?or I will go with my bak demat-SBI. Karvy brokerage is less than SBI, Is it correct. Will do rare trading also. Pl. suggest.

    Reply
    • Pks-If you are rare trader then why cost matters you? Go with the comfort.

      Reply
  39. I trade with a broker in Bangalore called FYERS (www.fyers.in) and they are tied up with IL&FS for demat account services. their brokerage is maxium 100 rupees.

    Best is trading platform. Truly amazing guys.. worth a try no charge.

    Reply
  40. dear sir,
    i m a central gov. employee having SBI saving account as salary account. now i want to invest money in equity shares and mutual fund in different fund houses for long term as a investor. for this i want to open demat a/c with full services. suggest me which bank is best for me to open demat a/c. i m thinking about sbicap securities…..?

    please suggest me

    with regards
    Bharat

    Reply
    • Bharat-If your view is long term, then go with SBI demat account only. For your information, to ivnest in Mutual Funds, demat account is not required.

      Reply
      • dear sir
        actual i want to invest in shares/mutual fund of different AMCs (with different plans) for long lime on a single platform through online. that why i needed to open demat a/c in SBIcap. please suggest me . am i rght ???????

        Reply
        • Bharat-For investing in mutual funds, demat account is not mandatory.

          Reply
  41. Sir I want to open a demat account which is best? Banks are charging too much. I am completely new to this but I want to invest some money for our future. So which firm will be best?
    How can I invest to get more profit?

    Reply
      • Can you please suggest for both?? I’m new & planning for trading. Also, which kind of trading is more beneficial for regular earning…intraday or delivery??

        Reply
        • Rohit-When it comes to trading I think zerodha offers cheapest rate. I never do trading. So I can’t guide you on that aspect.

          Reply
  42. I’ve been looking to shift from my current Demat service provider. Most of the threads in Traderji seem to be outdated. Which Demat SP would you recommend keeping in mind all the attributes such as:
    Safety of investments (incl. unauthorised transactions)
    Cost
    Reliability and Customer Support provided by the vendor

    Reply
    • Harsha-If your concern is cost, then go with Zerodha, if reliability and user friendly, then go with your bank provided demat account.

      Reply
  43. Hi, I’ve started trading almost an year ago. I have been trading with a discount broker and would like to change to a different SP.

    The most critical factors for me are safety of the investments without any unauthorised trades and provision of margin for delivery trades on CNC basis.

    For example if I have shares of Rs. 100000 in my portfolio purchased on CNC basis, I use the margin provided on that Rs. 100000 to buy other shares on CNC basis. My current broker provides me with margin for 7 days.

    I’ve seen that Zerodha doesn’t even provide margin for delivery based trades and SAS requires us to transfer the shares from our DP to their beneficiary account in order to provide margin.

    Please note that the above queries are all for CNC and not for futures and options.

    Reply
    • Tarun and Harsha (Because you used two names)-If your concern is cost, then go with Zerodha, if reliability and user friendly, then go with your bank provided demat account.

      Reply
  44. I am looking for a min of 4 year investment. Is it worth buying SBI share today

    Reply
  45. Hello Sir,

    My name is Vishwa , i want to open a trading account could you please guide me to which is the best one to open

    Reply
  46. hi basavaraj vijaykumar here i am new to stocks and investment and trading iwant to go for trading and stocks so when ichecked some of brokers giving free of cost but same time when i gone through the canarabank securities i,e can money is charging less Rs200 for demat and AMC the trading charges also .035% i felt it is good becoz others is giving free acount but later they are charging 800 and .50% what could be your suggestion

    Reply
    • Vijayakumar-If Canara Bank demat suites your requirement, then go ahead.

      Reply
  47. Hi Basu ,

    Thanks for the wonderful article. The 5th point “trading makes you mad” is so apt :-).

    I am a monthly investor with my salary account in HDFC. I have read reviews that HDFCsec is costly compared to broker like Angel broking and Motilaloswal. Need your suggestion whether to switch to other broker or not.

    Reply
    • Atul-If you are long term investor then stick to HDFC. If trader (or short term investor), then first try to negotiate with HDFC. If they not heed, then opt others.

      Reply
      • Thank you very much….

        Reply
  48. Hello Sir,

    I am 42 years old software engineer. Earning around 45k per month. Currently do FD for investment. But i want to go for investment in stocks. Can you suggest should i go for mutual funds ? or direct buy stocks ? What do you suggest ?
    If MF is your answer ..then which broker or firm is best for investing in mutual fund. If your answer is stock investment then please suggest me which bank or broker whose charges are less is suitable for me.

    Thanks

    Reply
    • Bhupin-I see that there is no clarity of why you want to invest. Please understand your financial goals and why you want to invest. Then the product selection is not a big issue.

      Reply
  49. Hi Basavaraj,

    I need your help regarding the investment planning.
    In august 2015 i started 2 SIP’s
    1) HDFC Equity Fund – Direct Growth plan for 3 years
    2) HDFC Midcap Opportunities Fund – Direct Growth plan for 5 years

    I am a beginner in this investment planning. is my decission to start SIP is correct? and Is the fund i chosen is good for investment?

    Now i am planning to invest in stocks for long term investment can you suggest me which will be best demat account for me to start the same. I have salary account in ICICI and i also have account in Axis.

    Requested to help me in this manner.
    Thanks

    Reply
    • Bhavesh-Both are best funds. You can continue same funds. Use ICICI 3-in-1 account.

      Reply
      • Thanks Basavaraj for helping me out.
        Again i need a suggesstion. My next target is to start with DSP Blackrock Micro Cap Fund Growth. so ideally which should i chose for (Regular Plan or Direct Plan) which option should i opt for starting an SIP.

        and is DSP Blackrock Micro Cap fund is good option to go for long term.?

        Reply
        • Hi Basavaraj,

          Can you Please suggest me the below :
          My next target is to start with DSP Blackrock Micro Cap Fund Growth. so ideally which should i chose for (Regular Plan or Direct Plan) which option should i opt for starting an SIP.

          and is DSP Blackrock Micro Cap fund is good option to go for long term.?

          Reply
        • Bhavesh-If you can manage the fund related activity like servicing and reviewing, then go ahead with DIRECT. If you want to create wealth, then opt for Growth option. DSP Blackrock Micro Cap fund is a new one. I might stayed away from this fund.

          Reply
  50. Hi Basavaraj,

    I want to open a 3 in 1 demat for both trading and investment purpose. Could you pls suggest me one?
    I would prefer which is comparatively low cost and has user friendly interface for online trading. Thanks

    Reply
    • Suzee-When you say investor, then I don’t think cost matters much. First check with your bank for the same. If they are offering it, then simply go ahead with your bank.

      Reply
  51. Dear Mr Babu, I am new to equity based investment. Your article gave a vivid picture of what to do and what not to do. Thanks and Regards, Sridhar K M

    Reply
  52. Nice and very useful information , I am like a long term investor type , like buy and hold type , can you please suggest which type of broker ,i can go to open demat and trading accounts , i have icici bank account , but they are charging too much , so can you please suggest proper broker for me for long term investment

    Reply
    • Babu-In your case go with ICICI. Because as you claim to be investor, then I don’t think charges matter that much for you.

      Reply
  53. Hi Sir,
    I have very limited knowledge about investment and trading. I want to invest in Small cap shares. what are the things you will suggest. Also, I want to know about fundsindia. Should I invest through them? I have account with Fundsindia.

    Reply
    • Jiswanath-On one way you say as a “limited knowledge” and in another way, you plan to invest in small cap shares. How you selected those stocks only?

      Reply
  54. Hi Sir, your article is helpful. Thank you for that. Your articles and comments gave me a clarity on investment and trading. I am interested in investment and for that I thought of choosing sbi demat account or kotak demat account, as i didn’t have an idea about others. Sbi- because it is a govt based. Kotak – because my friend suggested as he is already using. Please guide me what to do. Thank you:-)

    Reply
    • Mahender-SBI-No logic in that to go thinking it is Govt Backed…SBI Bank is different than SBI Demat…Kotak-Referred by friend..don’t believe blindly. To be frank, if you are investor then stick to bank where you have savings account.

      Reply
  55. can you please tell us something about “Basic Services Demat Account”?

    Reply
  56. Hi Basavaraj,

    I am planning to invest 3000 per month for 15 or 20 years, please suggest me which type of investment is good?

    Reply
    • Devraj-Equity oriented well diversified mutual fund with debt allocation around 30% to 40%.

      Reply
      • Hi Basavaraj,

        Thank you, Please suggest me some good mutual funds and how to invest on it.

        Reply
          • Hi Basavaraj,

            My time frame would be 10 to 15 years.

            Reply
              • Hi Basavaraj,

                Should I invest 3000Rs per month in single mutual fund or should I divide the amount?
                Please suggest me how can i invest ?

                Reply
                • Devaraj-You can invest in a single mutual fund like multi-cap funds or else have different sector funds like one large cap, one small and mid-cap and another a balanced fund (to invest some portion into tax-free debt portfolio).

                  Reply
  57. Hello Sir,

    I am beginner in this field. I want to be a trader not an investor. Will you please suggest me the basic things what I should do as an trader. Which De-mat a/c(ICICI,Sherkhan……..others) will be best for trading purpose?

    Reply
    • Priya-In my view go with ICICI, HDFC or Sharekhan. Bargain with them about the cost. Basic things to do before jumping into well are-understand your risk, never run behind hot tips and high return always will come with high risk 🙂

      Reply
  58. Sir,
    1) Will you plz refer to some particular article/books that can be gone through in order to understand all the things related to share market? Laymans like me are so lost in this labyrinthine world of share market and the jargons related to it. All things go 100 miles over our heads. So plz make us comfortable by turning us from laymans to experts (to some extent at least). We will be grateful to you…??

    2) I want to start some marketing (after knowing some knowledge, of course.). Will you like to guide me through??

    Reply
  59. Explained in very simple way!! very much helpful for beginners thanks for all info.

    Reply
  60. sir the knowledge you shared is awesome
    I want to become an investor , so in which bank or brokerage firm should i open my account.

    Reply
    • Dave-It depends on your requirement, which I already explained.

      Reply
  61. I am 26 years old. Sir i want to invest monthly 3000 in SIP through fundsindia. can u guide me how to allocate my funds?

    Reply
  62. respected sir,

    i am a 22 year old entrepreneur .

    already own & run 1 company successfully & great growth since last 2 years .

    i happen to watch forex & commodity market’s for fun since the beginning .

    i always had a gut feeling that if i trade i can make a good success out of forex & commodity markets as well .

    i want to start trading ( not investing only trading ) in forex and crude oil , copper , silver & gold metals .

    this is first attempt to starting a trading business .

    what would u suggest / advise to a young gun like me ???

    which demat option is better ??? who has the easiest user friendly software , i am not very tech-savvy .

    IIFL has already got in touch with me alongiwth a particular account with ratnakar bank. they claim there daily calls are 90% accurate .

    i would still like an expert advise on how to select the bank and broker / advisory firm .

    very confused as there are so many options like angel broking , IIFL , ICICI direct , etc etc etc .

    pls note not exactly interested in investing just SIMPLE PURE DAILY TRADING .

    i will await your advise .

    thank you very much .

    Reply
    • Aeshan-Watching for fun is different than investing or trading. First made up your mind whether you want to be trader or investor. What if the next moment you loss all money then whether you sleep calmly on that night or not? Read the basics and start on your own strategy. Never ever pay to any package or act on any HOT TIPS. If IIFl is so much accurate (90%) then why they are running behind a retail customers like you? Why can’t they invest their money and become a millionaire? It is all false claims and never ever believe on this.
      In my view, I never say a success story behind daily trading (for may be claiming they earned this much or that much. But let them check their balance sheet to know how much they earned before loosing the double of that).

      Reply
      • dear sir , thank you for reply.

        i have already mentioned I WANT TO BE A TRADER , NOT AN INVESTOR .

        yes the IIFL claim seems to be unrealistic to me as well .but they don’t charge anything for their tips .

        i will verify this claim by checking last 100 day intraday calls against actual market movement .

        ” why they run after retail customers ” well , not exactly much concerned .

        their commission is 5 paise per trade …. is there a more competitive brokerage offer by any other company?

        yes i do have a strategy , and will follow that .

        i did not understand the term “LOOSE ALL THE MONEY” , even if market goes down ” my purchase will still be with me ” , i can hold it for market to come up .

        lastly i will not put all my eggs in one basket 🙂 .

        i want to start super small & stay that way for first 100 days … the amount value will be irrelevent , my prime concern will be return in terms of percentage .

        then i plan to gradually increase ahead .

        sir my question s:-

        1) is it possible to trade without involving any brokerage firm ???? if yes , then how ?????

        2) which bank has the best demat offer & service ?????

        3) if brokers are compulsary , then who is the best in terms of service , pricing and maybe tips/calls ???

        awaiting response

        thank you

        Reply
        • Aeshan-God can protect your and best of luck 🙂
          1) No. 2) You can first check with the bank where you already having bank and bargain for brokerage. 3) All are same especially when it comes to providing tips. All claim they are the real trader on this earth. IIFL providing service at free? Their concentration is not on the charges on these tips, but how frequently you trade. More trade generates to more earning. 5 paisa too small? You will come to know after few months and share your experience of it !!!

          Reply
          • IIFL is famous for false assurances.They have cheated many people by proposing wrong insurance policies which spoilt the financial condition of many.So please don’t be a victim of IIFL.You can open a 3 in 1 account in ICICI or HDFC or AXIS Bank,please read all the conditions carefully before opening of account.If you are interested for frequent trading,I would suggest Zerodha for you because they are very reliable & considered as the best discount broker in India.

            Reply
            • Dash-Why you approach stock broker? For stock investment or trading right? If he sold insurance by false claim and you bought it without doing homework means it is purely misselling by IIFL and mis-buying by the customer. It is a two-way process.

              Reply
  63. I have an demat account in HDFC Securities. but i have seen some negative reviews for it. i am confused whether it is good or not compared to icici. can you suggest me best demat account for investing other than MF.

    Regards
    Manash

    Reply
    • Manash-If you want to be investor then I think demat account with HDFC is best. What negative views you heard about this? ICICI is bit costlier.

      Reply
  64. Hi S
    I’m very new to this whole investment part but have really a great deal and understood the basics from your posts. Thanks for being so very informative for beginners like me.

    As I mentioned, i’m a beginner so it would be very helpful if you can shed some light by listing to demat/trading accounts for the investors.

    I’m looking for long term investment through SIP in MF and unsure whether to opt for ICICI Direct or Axis Direct or go for FundsIndia whose charges appear much less compared to these bank demat accounts.

    I already have my salary account with Axis so thinking about going with it. Can you advice?

    Reply
    • Marcus-First of all keep in mind that, Demat account is not required to invest in MF. These Demat account in fact change additionally apart from what they earn from mutual fund companies. Hence, it is the costliest mode of investment. However, if you are new then you can opt the service of FundsIndia which act like an adviser and not charge anything extra (apart from what they get from trail and upfront commission from mutual fund companies). Otherwise, you can also opt the service of an adviser of your locality like me. Once you understood the basics and confident of managing on your own then switch to DIRECT funds.

      Reply
      • Thanks for the reply Basu sir.

        I’m from Chennai and don’t really know any personal financial planners here. So far, invested in RD and LIC the usual conservative approach suggested by family elders. Just after getting to know a bit through your blogs and few others, have started sorting out my finances.

        1. Have got a LIC e-term policy now. I have been paying 20k premium per month on a Jeevan Anand policy for 5 years but decided to make it paid up.
        2. Have started SSA for my girl who is 3 years old with a monthly premium of 5k
        3. Closed all my RD and moved my home loan from HDFC to Citibank just for the Home Credit option so I can maintain some liquid cash
        4. Opted for NPS which is a WIP for now

        So now looking to invest some 12k per month in MF for retirement planning and to build corpus. I would greatly appreciate if you could help with the means and ways.

        Regards,
        Marcus

        Reply
        • Marcus-If you are new then chose an adviser like me or the online portals like FundsIndia. If you are confident of managing your money on your own then go for DIRECT Plans. Choice is your’s.

          Reply
  65. Hi Sir
    Could you pls tell that what is equity invstmnt and how much it is differ from equity trading ..?

    Reply
    • Dip-There is no specific definition. However, an investor is someone who not worry about day to day movement of stock. Instead, he believes as if he invested in a business and looks for long-term growth. In case of trader, he purely looks for an opportunity to buy and make a profit. He is more concerned about day to day fluctuation and news which may impact to his stock holdings.

      Reply
      • Thanks Sir for your reply.i have been visiting your site and i feel all the informations are trully helpful and concrete..

        Reply
  66. Hi,

    I need advice on financial planning,who are the best FP in blore and honest who can help m out

    Thanks,
    Shiv

    Reply
    • Shivakumar-I can say I am BEST. But you have to test me and then take my arguments 🙂

      Reply
  67. Hi sir,
    there is typo error, “buy” is missing after “you’

    “6) Stay away from Margin Trading-Initially you the stocks”

    Reply
  68. Thanks for guiding novices like us. Its a good informative article.

    Reply
  69. Hi Basu sir,

    All my basic doubts are cleared now, a very big thanks to you!

    I was reading a lot of articles but never seen such a beautifully written article, hats off to you.

    The point you mentioned – “Trading makes you mad” – I latterly experienced it in my initial days of trading, I used to think why weekends /national holiday exists…but after experiencing the pain of trading and later I became an investor, so now my mind is peaceful. Now book profit whenever it is profit or be patient.

    thanks again!!!

    Kirthan

    Reply
    • Kirthan-Thanks for sharing your experience. Hope others too follow.

      Reply
  70. Quite informative article.

    Reply
  71. Thanks you so much Basu sir… nice to know this useful information ..!!

    Reply

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