DONT KNOW HOW TO START TRADING IN STOCK MARKET? HERE ARE A FEW STEPS TO GET YOU STARTED :)

To start investing in the stock markets, you need 3 types of accounts – Trading Account (to place buy/sell orders), Demat Account (to hold your shares in dematerialized form), and a Bank Account (for fund transfers).

  

Trading Account

An account similar to a bank account. It is opened ‘stock exchange registered stock broker’. This account is used for placing orders in the stock exchange (i.e. to buy/sell shares).

Demat Account

An account where shares are held in a dematerialized form (i.e. electronically instead of the investor taking physical possession of certificates). The demat account is required to receive/transfer shares when you buy/sell shares through your trading account.

Bank Account

Your regular savings or current bank Account can be linked to your trading account. The Bank account is required to transfer/receive money when you buy/sell shares through your trading account.

To open a trading / demat account, follow the following process:

• Approach a BSE and NSE registered stock broker.
• Fill up the KYC form provided by the stock broker.
• Attach the required documents – (i) identity proof and (ii) address proof.
• Produce the original PAN card during account opening.
• For Derivatives segment (i.e. futures and options market), 6 months account statement of your existing bank account is required.
• One canceled cheque of the bank account you want to link to your trading account.
• 3 passport size photographs

Usually, the account opening and maintenance charges in all the brokerage firms in India do not have a huge difference. What makes one better in comparison to the other are the brokerage charges. As an investor, one is worried about the amount of money he has to shell out as brokerage or commission as it reduces your net profit. 

There are two types of brokers you can opt for-

Full-time brokers: Full-time service brokers are traditional brokers offering trading (stocks, commodities, and currency), research and advisory, investment banking, sales, and asset management under one roof. They also allow investing in Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance. In some cases, full-service brokers also have in-house banking and demat account services

Discount brokers: Discount brokers offer low brokerage, high speed and the state-of-the-art execution platform for trading in stocks, commodities and currency derivatives. They offer 'no-frills' brokerage service for 'do-it-yourself' traders who understand the market well. They are also known as online brokers who offer savings of 80-90% on brokerage.

In India, Zerodha stands on No. 1 position in the list of discount brokerage firms. It offers 0% brokerage on Equity Delivery. All other rates are as follows:

For more details, you may visit https://zerodha.com

Thank you.