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Different Charges on Share Trading Explained- Brokerage, STT & More

Different Charges on Share Trading Explained. Brokerage, STT, DP & More (Updated): There are a number of charges and taxes involved while trading in India i.e. buying or selling of shares. Some of them are quite popular like Brokerage Charge & GST, while there are many others that the traders and investors are not aware of. In this post, I am going to explain all types of different charges on share trading. Some common ones are brokerage charges, Security transaction charges (STT), stamp duty, etc.

Anyways, before we start discussing them, let us spend a few minutes to learn a few basics things that you need to know first. So, be with me for the next 10-12 minutes to understand the explanation of all the different charges on share trading. Let’s get started.

1. Intraday Trading and Delivery

A lot many beginners trades in stocks and confuse it by investing or delivery. However, both of them are really different:

Intraday Trading: When you buy & sell a share on the same day, then it’s called Intraday trading. For example, you bought a share in the morning and sold it before the market closes on the same day, then it will be considered as an intraday
Delivery Trading: On contrary to Intraday, when you buy a share and hold it for at least one day, then it’s called a delivery. For example, you bought a share today and sold it after three days (or any day but today) then it will be considered as a delivery. Here you can sell the stock tomorrow, or the day after that, or a week later, a year later or 20 years later.

2. Full-Service Brokers and Discount Brokers:

Full-Service brokers: These are the traditional brokers who offer full-service trading services in stocks, commodities, currencies, mutual funds, etc along with research and advisory, portfolio and asset management, banking all in one account. For example, ICICI Direct, Kotak Securities. HDFC securities, etc.
Discount brokers: These are those budget brokers who offer high speed and the state-of-the-art execution platform for trading in stocks, commodities and currency derivatives. They charge a reduced commission (flat price) and do not provide trading advice. For example, Zerodha, 5Paisa, Angel Broking, Trade Smart Online, etc.

Also read: 8 Best Discount Brokers in India – Stockbrokers List 2020

In general, a full-service broker charges a brokerage between 0.03% – 0.60% of the transaction volume while trading in stocks. On the other hand, the discount brokers charge a flat fee (fixed rate of Rs 10 or Rs 20 per trade) on intraday. The majority of discount brokers also do not charge any fee on delivery trading.

It is important to note that you have to pay a brokerage charge on both sides of trading i.e. while buying a share and selling a share. Let’s take an example to understand the brokerage charge better.

Suppose there is a brokerage firm called – ABC. Now, this broker charges a brokerage fee of 0.275% on intraday trading and 0.55% on delivery trading. The total charges on both tradings can be given as-

	Intraday Trading	Delivery Trading
Brokerage	0.275% of total turnover	0.55% of total turnover
Turnover	If you buy 100 stocks at Rs 120 and sell at Rs 125, total turnover is (120100+ 125100=) Rs 24,500	If you buy 100 stocks at Rs 120 and sell at Rs 125, total turnover is (120100+ 125100=) Rs 24,500
Total Brokerage Cost	Total brokerage charge on Intraday trading (for both buying and selling) = 24,500 * 0.00275 = Rs 67.38	Total brokerage charge on Delivery (for both buying and selling) = 24,500 * 0.0055 = Rs 134.75

As the competition among the brokers is continuously increasing, these brokerage charges offered by the different brokers are also decreasing. For example, the discount brokers like Zerodha offers a flat fee of Rs 20 or 0.01% on Intraday trading (whichever is lower) and Delivery investments are FREE. Therefore, for the above table, assuming the same scenario, the person would be paying only Rs 2.45 in Intraday Trading and Zero Brokerage on Delivery, if he prefers Zerodha as its broker.

Now, apart from brokerage charges, there are also an additional couple of charges and taxes to be paid while share trading. As already mentioned earlier, some of them are Security transaction tax, service tax, stamps duty, transaction charges, SEBI turnover charges, depository participant (DP) charges, and also capital gain tax (which you’ve to pay at the end of the financial year but not while transacting).

Let’s understand these other different charges on share trading and taxes involved first. Further, we will also discuss an example at the end of this post to understand the charges and taxes involved better.

Different Charges on Share Trading

– Security Transaction Tax (STT)

Apart from brokerage, this is the second biggest charge involved while trading in stocks.
For delivery trading, STT is charged on both sides (buy & sell) of transactions and is equal to 0.1% of the total transaction price (on each side of trading).
For intraday and derivate trading (futures and options), STT is charged only when you sell the stock. For intraday, the STT charge is 0.025% of the total transaction price while selling.
For equity Futures, the STT is equal to 0.01% on the sell-side. On the other hand, for equity options trading, STT is equal to 0.05% on sell-side (on premium).

– Stamp Duty

Stamp duty is charged uniformly irrespective of the state of residence effective from July 1st, 2020. These new rates are only on the buy-side (and not on both buy and sell-side). Here are the new rates on stamp duty on different types of trades:

Type of trade	New stamp duty rate
Delivery equity trades	0.015% or Rs 1500 per crore on buy-side
Intraday equity trades	0.003% or Rs 300 per crore on buy-side
Futures (equity and commodity)	0.002% or Rs 200 per crore on buy-side
Options (equity and commodity)	0.003% or Rs 300 per crore on buy-side
Currency	0.0001% or Rs 10 per crore on buy-side
Mutual funds	0.005% or Rs 500 per crore on buy-side
Bonds	0.0001% or Rs 10 per crore on buy-side

Quick Note: Previously, the stamp duty was charged by the state government and hence not similar across all the states in India. A few states charged higher stamp duty, whereas a few of them charges lower duty taxes. Different states charge different stamp duty. Moreover, Stamp duty used to be charged on both sides of transactions while trading ( i.e. buying & selling) and hence are charged on the total turnover. **This rule changed after 1st July, 2020.

– Transaction Charges

The transaction charges is charged by the stock exchanges and that too on both sides of the trading. This charge is the same for intraday & delivery trading.
National stock exchange (NSE) charges a fee of 0.00325% of the total turnover as Transaction charges on Equity and Delivery Trading. On the other hand, Bombay stock exchange (BSE) charges a fee of 0.003% of total turnover as Transaction charges on Equity and Delivery Trading.
For Derivatives trading, BSE doesn’t cost any transaction charges. However, on NSE, the Exchange transaction charge is 0.0019% for futures trading and 0.05% of total turnover for Options Trading.

– SEBI Turnover Charges

SEBI stands for the Securities exchange board of India and it is the security market regulator. SEBI makes the rules and regulations on the exchanges for its proper functioning.
SEBI Turnover fee is charged on both sides of the transaction i.e. while buying and selling and is the same for all equity intraday, delivery, futures, and options trading.
The SEBI turnover charge is equal to Rs 10 per crore of the total turnover.

– Depository Participant (DP) Charges

There are two stock depositories in India- NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). Whenever you buy a share, it is kept in an electronic form in a depository. For this service, the depositories charge some fixed amount.
The depositories don’t charge the traders or investors directory but charge the depository participant. Here, the brokerage firm or your demat account company is the depository participant (DP).
DP acts as a linkage between the depository and the investor as the investors cannot directly approach the depository. In short, the depository charges the DP and then the depository participant (DP) charges the investors.
For example, while trading with Zerodha, DP charge is equal to ₹13.5 + GST per scrip (irrespective of quantity), on the day, is debited from the trading account, i.e. when stocks are sold. This is charged by the depository and depository participant.

– Goods & Service Taxes (GST)

GST is the mandatory tax levied by the government on the services rendered and is equal to 18% of total brokerage and transaction charges.

– Capital Gain Taxes

Lastly, Capital gain taxes is the most important tax to understand in this article for the traders and investors. We are not going to cover all the details regarding capital gain taxes in this article, but just a short over. If you want to read the complete details, you can refer to this article.

There are two types of Capital gain taxes in India – Short-term capital gain tax and Long-term capital gain tax.
When you sell a stock before one year of buying, then it is considered as a Short-term. Here a flat 15% of the profit is charged as short-term capital gain tax.
When you sell a stock after one year of holding, then it is called the long-term. For the long term capital gain, you have to pay a tax equal to 10% of the gains, if it exceeds Rs 1 lakh.
For Intraday Traders, they need to pay taxes on their capital gains which depends on their tax slab. For example, if you’re in the highest tax slab and made some profits while intraday trading, you’ve to pay taxes of 30% on those gains.

Quick Note: You can also download our FREE android app of ‘Brokerage Calculator’ to find the total brokerage and actual profits/loss while trading in stocks ‘on your phone’. Here is the quick link!

Example of Different Charges on Share Trading

Now, let us see an example to understand these different charges on share trading and taxes involved better. Suppose there are two traders- Rajat and Prasad. Here, Rajat is a delivery trader who invests in the long-term i.e. for 2-3 years. On the other hand, Prasad is an intraday trader.

They both have their accounts in the same discount brokerage company named ABC. The brokerage charge for ABC is Rs 20 Per trade on intraday trading and FREE for delivery trading.

Also, let us suppose that both Rajat and Prasad have traded a total turnover of Rs 98,000 in a share (i.e. total cost involved while buying and selling). In addition, they both live in Maharastra.

Now the different charges and taxes paid by them for complete trading i.e. from buying to selling the shares can be given as-

	Prasad (Intraday Trader)	Rajat (Delivery Trader)
Buy Price	120	120
Sell Price	125	125
Quantity	400	400
Total Turnover	Rs 98000	Rs 98000
Exchange	NSE	NSE
State	Maharashtra	Maharashtra
Brokerage Charge	Rs 40 (Flat Rs 20 Per trade i.e. Buying & Sellling)	Rs 0 (FREE Delivery Trades)
STT	0.025% of sell side = 0.025 % of Rs 50,000 = Rs 12.5	0.1% on buy & sell = 0.1% of 98000 = Rs 98
Stamp Duty	0.003% of buy-side = 0.003% of 48,000 = Rs 1.44	0.015% of buy-side= 0.015% of 48,000 = Rs 7.2
Transaction Charges	0.00325% of total turnover = 0.00325% of Rs 10,000= Rs 3.18	0.00325% of total turnover = 0.00325% of Rs 10,000= Rs 3.18
SEBI Turnover Charges	Rs 10 / Crore of Total Turnover= Rs 0.10	Rs 10 / Crore of Total Turnover= Rs 0.10
GST	18% on (brokerage + transaction charges) = 0.18 * (40+ 3.18)= Rs 7.77	18% on (brokerage + transaction charges) = 0.18 * (0+ 3.18) = 0.57
Total Brokerage And Taxes	64.99	109.05
Total Profit or Loss	1935.01	1890.95
Capital Gain Tax	Depends on the tax Slab	Depends on Short/long term holding period

At first glance, it looks cheap to invest in intraday as the total charges are comparatively less here. But you should note that the frequency of trading for intraday traders is quite high. Many intraday traders easily make 2-3 high volume trades every day. So, they have to pay these brokerage charges and taxes again and again. On the other hand, delivery traders or long-term investors do not make such frequent trades.

Overall, charges and taxes are a very important part of trading and should not be ignored. You might think that you are in profit, but the real profit is the one which is left after deducting the charges and profit. I hope the traders will keep this in mind before trading the next time.

Zerodha Brokerage Calculator

Before ending this article, here’s the brokerage calculator for equity trades using Zerodha, the discount broker.

Quick Note: If you’re interested in opening your demat account with Zerodha, the No 1 stockbroker in India, here’s a direct link to the account opening page.

That’s all for this post. If you’ve any doubts related to the different charges on share trading in India, feel free to comment below. I’ll be happy to help you out. Cheers & Happy Trading!

Kritesh Abhishek

Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

www.linkedin.com/in/kriteshrules/

July 1, 2020 Kritesh Abhishek Investment Basics, Online Brokers 73 comments

zerodha success story discount stockbroking India

Zerodha Success Story: Journey to Biggest Stockbroking in India!

Zerodha Success Story in Stockbroking Industry in India: Trading and Investments are the two terms everyone wishes to experiment but are reluctant to step in due to many reasons like lack of knowledge, hefty commission and brokerage charges, uncertainties in the market and so on. 2008-2010 were the years when the biggest global financial crisis happened and the world was facing a trading hush. In India, the stockbroking companies that existed also experienced a downfall and were using old technologies to provide stockbroking services. Many young generation people were not educated enough to even think of trading at a very young age.

While all of these were encountered by almost every broker in India, Bangalore based discount broking firm, Zerodha was founded in 2010 by Mr. Nithin Kamath that provides trading services at discounted brokerage fees and user-friendly interface with reliability. This firm enjoys a massive client base of over 2.5 million users. Let us deep dive into the journey of how Zerodha success story and discuss how it became the biggest discount broker in India in this article.

The founding of Zerodha: How did it start?

The Co-founder of Zerodha “Nithin Kamath”, before establishing Zerodha, was working in the call center in the night and he used to trade during the morning hours. At the age of 17, he got introduced to the stock markets by his friend and since then he started trading.

Although he made a good chunk of money by trading in stocks, he lost all the money during 2001 and 2002 when the markets crashed. Over a period of time, he was landed a cheque from a foreign HNI to manage his money. Eventually, he joined Reliance Money as a sub-broker and made a lot of money by adding big clients to Reliance money. Nevertheless, again lost a significant amount of money in the second market crash in the middle of the global financial crisis in 2008-09.

After trading for full time for over 10 years, this Maverick decided to become a broker when he thought that the time has come to provide a different kind of stockbroking services that he never came across during the 10 years span of his trading. He felt digitization and online user-friendly platform are the need of an hour when he first thought of starting Zerodha. Nitin Kamath also observed that the reason why the young generation is not willing to start trading is that there are high brokerage charges implemented on the transactions. His aim was to become an online broker using the latest technologies that is more people-first than profit-first.

Zerodha is derived from the Sanskrit word Rodha which means Obstructions. The name Zerodha means ‘No Obstructions’. Hence, the founder aimed at providing a hassle-free, low brokerage trading platform. He targeted clients who are young and more tech-savvy to contribute to the capital market ecosystem. According to him, he wanted more of a Google-like platform with a simplicity to use rather than a Yahoo-like platform. When he felt the need to change the system, he along with his younger brother, Nikhil, started Zerodha and the rest is the history or rather a case study for everyone.

The Secret Formula of Zerodha’s Success

It is indeed a fact that there is no short cut to success. However, Nithin Kamath, when founded this discount broking firm, decided to provide technology-efficient and cost-efficient services to its customers. He observed that there is a huge lag between the commissions charged by the other brokerage firms and the amount of money actually received by the customers.

In addition to that, the technology that was used was too old and Nithin felt the need to introduce a smart platform that enables users to trade online comfortably. He thought of providing services at a low cost where the idea of charging low commission clicked into his mind. He also wanted to attract more young customers who often do not enter into trading due to high commission charges. With this aim, he started his firm and today it has become the biggest discount broking firm. He believes if we do not depend too much on foreign capital and invest for our own companies, the day is not far when India will become an economically strong country.

Surprisingly, the firm hardly spent any money on advertising or marketing for its own firm. They do not run any advertisements. The founder believes in ‘the word of mouth is your true marketing’. Thus, with a very low operating cost Zerodha was able to capture a large number of customers. Interestingly, trading is provided free of cost at his stockbroking firm if the period of holding for shares is longer than a day.

They make money by charging a flat fee of Rs. 20 for futures, options, and intraday trading. While other competitors charge much more than this which is based on the percentage of a transaction traded. Its business model on which it works is ‘low margin – high volume’.

Innovation and New Additions

In order to stay competitive, the firm launched many products to expand its reach and to overcome some challenges they were facing. Below is a brief on what each product provides:

— Console: It is a central dashboard of a customer’s account with Zerodha that will provide in-depth reports and visualizations to get more insightful idea.

— Kite: It is a sleek trading and investment platform using the latest technologies. It eases the customer’s experience to trade and transact in the stock market.

— Kite Connect API: This is mainly focused on independent traders and startups to enable them to build an innovative trading and investment platform. Using algorithms, retail traders can automate their trades.

— Sentinel: A platform that enables you to create market alerts. The alerts can be customized based on price, trade quantity, and open interest. The interesting aspect of this product is that you do not need to be a Zerodha customer in order to use Sentinel.

— Z Connect: This is a blog facility regarding stocks, trading, and investment with Zerodha. They publish articles and information on this blog and any user is allowed to ask questions and post comments.

— Varsity: One of the challenges faced by this firm was that it lacked in providing research services to its customers who are sometimes clueless about what and when to buy or sell. To overcome this, they come up with Varsity that gives a vast collection of stock market lessons on the go.

— Coin: It provides a commission-free purchase of mutual funds directly delivered into the customer’s Demat account.

— Rainmatter: It is an incubator that provides funding as well as mentorship to startup companies in capital markets and gives minority stake in exchange.

Source: Product information from Zerodha.com

In addition, Zerodha has also partnered with a lot of leading stock market platforms and portals like Streak, Sensibull, etc to create more value for their clients.

Let us Talk about Challenges

Despite the tremendous success and huge customer base, Zerodha also had to confront a few challenges as described below:

First of all, Zerodha does not provide stock advisory or any market-related calls that would enable its customers to decide on what to buy and sell.
They also suffered from a lack of delivery of valuable advisory reports and analysis of one’s investments and trading activities be it either weekly or quarterly. Most of the big full-service brokers provide research reports.
As Zerodha is mostly online and no offline support branches, inefficient customer support, and lack of quick customer service are the biggest challenges that this firm faces.
Technical errors like app down for a few minutes or charting errors were reported previously which was basically because of the high market traffic situations.

Also read: 8 Best Discount Brokers in India – Stockbrokers List 2020

Closing Thoughts

To sum up, competing with big players like HDFC and ICICI is indeed a daunting task that the genius was able to cope up. However, there are other competitors too such as Upstox, Groww, SAS Online, Angle Broking, TradingBells, etc. However, the founder wishes to continue with his low margin strategy. This firm also developed a strategy to start selling Treasury bills, Government Securities, and Sovereign Gold Bonds which is everyone’s preference while the markets are facing a downfall.

Nithin strongly believes in not running after the money but to do the right things for a long period of time. This is what is the reason his firm has become one of the top-most broking firms in the country over the eight to nine years of time. To add to that, after facing so many challenges, the firm has made its way to persistently increase its customer base year by year.

That’s all for this post. I hope this Zerodha success story is inspiring for all the budding entrepreneurs and business enthusiasts who are planning to make something big in the stock market industry. Stay safe and happy investing.

June 14, 2020 Team Trade Brains Online Brokers 2 comments

15 Biggest Stockbrokers in India With Highest Active Clients

List of Biggest Stockbrokers in India (Updated: 30th April 2020) In this article, we are going to look at the 15 Biggest Stockbrokers in India based on their total number of unique active clients.

There are over three hundred stockbrokers in India registered with SEBI and different stock exchanges. Even on National Stock Exchange (NSE), there are 120 registered stockbrokers in India as of 30th April 2020. When you are looking for the best stock broker to open your demat and trading account, one of the most straightforward factors to look into is its total number of active clients. Although a large client base doesn’t guarantee a better service, however, being a big firm, it reduces the possibility of the brokerage firm disappearing or running out of the service soon enough.

These days, one and all stockbrokers will argue that they are trustworthy as they are registered with SEBI. However, just because they are registered with SEBI doesn’t make them reliable for the long term. Time and again, a lot of such small brokers are either expelled out of the exchange or simply go out of the business and files bankrupt. And this leads to a lot of trouble for their current clients.

Therefore, a safer option for the customers to avoid any such kind of inconvenience is by opening their trading account with the biggest stockbrokers in the Industry.

15 Biggest Stockbrokers in India with Highest Active Clients

Several websites rank stockbrokers in India based on different factors like their brand value, trading platforms, customer services, facilities offered, complaint ratio, etc. However, in this article, we are not going to look into these factors.

Here, we are going to look at just one factor, i.e. the total number of unique active clients for that stockbroker. In this post, the stockbroker with the highest number of clients is ranked first, followed by the subsequent stockbrokers with top active clients.

For this approach, we are going to use the data available on the NSE India website. The national stock exchange website provides the details of the monthly total number of unique clients of the different stockbrokers registered with it. Here’s a quick link to the page. You can also download the spreadsheet available on this page to analyze the stockbrokers further.

Here are the 15 Biggest Stockbrokers in India based on the total number of unique active clients:

S No	Name of Stockbroker	# of Active Clients	% Share
1	ZERODHA BROKING LIMITED	1598948	14.28%
2	ICICI SECURITIES LIMITED	1081960	9.66%
3	HDFC SECURITIES LTD.	726197	6.48%
4	RKSV SECURITIES INDIA PRIVATE LIMITED (Upstox)	675551	6.03%
5	ANGEL BROKING LIMITED	629260	5.62%
6	KOTAK SECURITIES LTD.	583482	5.21%
7	SHAREKHAN LTD.	547950	4.89%
8	5PAISA CAPITAL LIMITED	489661	4.37%
9	MOTILAL OSWAL FINANCIAL SERVICES LIMITED	385535	3.44%
10	AXIS SECURITIES LIMITED	271990	2.43%
11	SBICAP SECURITIES LIMITED	261951	2.34%
12	KARVY STOCK BROKING LTD.	231818	2.07%
13	IIFL SECURITIES LIMITED	224450	2.00%
14	GEOJIT FINANCIAL SERVICES LIMITED	165029	1.47%
15	EDELWEISS BROKING LIMITED	130926	1.17%

Please note that the total number of active clients of all stockbrokers is 1,11,98,563 as of April 2020, mentioned on the NSE India website.

From the above table, you can quickly notice that Zerodha is the biggest stockbroker with the highest numbers of unique clients registered on the National stock exchange in India.

As of April 2020, Zerodha constitutes around 14.28% of the total market share of the active clients registered on the National Stock Exchange. It has over 15.9 lakh active customers compared to a total of over 1.11 Crore active clients of all stockbrokers on the NSE.

What makes this list even more interesting is that Zerodha was just founded in 2010 and still has been able to outrank all the old and well-matured traditional brokers. It is the only broker with a discount brokerage business model in the top ten list. Anyways, Angel broking has also started a similar discount brokerage model recently, along with its full-service model.

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

According to the above table, Zerodha is closely followed by ICICI securities, which ranks second and has over 10.81 lakhs unique clients.

The other most prominent stockbrokers in this list are HDFC Securities (7.26 Lakh clients), Upstox (6.75 Lakh Clients), Angel Broking (6.29 lakh clients), Kotak Securities (5.83 lakh clients), Sharekhan (5.47 lakh clients), 5Paisa (4.89 lakh clients), Motilal Oswal Group (3.85 lakh clients) and Axis Securities (2.71 lakh clients). Together these 15 biggest stockbrokers constitute over 71.48% of the total share of the unique clients registered on NSE.

Also read: Compare Online broker in India – Stockbrokers list

Bonus: Additional Top Stockbrokers

Here is a list of the ‘Next’ 15 biggest stockbrokers in India with the highest active clients registered on the National stock exchange as of 30th April 2020.

S No	Name of Stockbroker	# of Active Clients	% Share
16	RELIANCE SECURITIES LIMITED	120069	1.07%
17	SMC GLOBAL SECURITIES LTD.	113980	1.02%
18	RELIGARE BROKING LIMITED	112527	1.00%
19	NIRMAL BANG SECURITIES PVT. LTD.	94902	0.85%
20	MARWADI SHARES AND FINANCE LIMITED	83238	0.74%
21	VENTURA SECURITIES LTD.	76526	0.68%
22	ANAND RATHI SHARE AND STOCK BROKERS LIMITED	73047	0.65%
23	TRADEBULLS SECURITIES (P) LTD.	63030	0.56%
24	SAMCO SECURITIES LIMITED	54860	0.49%
25	IDBI CAPITAL MARKETS & SECURITIES LTD.	52056	0.46%
26	MONARCH NETWORTH CAPITAL LIMITED	49955	0.45%
27	INDIABULLS SECURITIES LIMITED	44678	0.40%
28	ADITYA BIRLA MONEY LIMITED	44533	0.40%
29	ALICE BLUE FIN SVCS P LTD	43235	0.39%
30	MASTER CAPITAL SERVICES LIMITED	39617	0.35%

That’s all for this article. Please comment below which brokerage firm you’re using for trading in the Indian stock market and your review for the same. Happy trading!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

May 25, 2020 Kritesh Abhishek Online Brokers 3 comments

Zerodha vs Angel Broking: Stockbroker Comparison

Zerodha vs Angel Broking Comparison: Zerodha and Angel Broking are two of the best and biggest discount brokers in India. In this article, we are going to compare Zerodha vs Angel Broking by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, pros, cons, and more.

This comparison between Zerodha vs Angel Broking will highlight the major differences between these two stockbrokers and help you choose the best between them based on your preferences.

Zerodha Introduction

Zerodha, founded in 2010 by Nitin Kamath, is the biggest stock broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It has over +2.2 million clients that contribute to over 15% of daily retail trading volumes across BSE, NSE, and MCX.

In terms of brokerage charges, Zerodha offers a zero brokerage for delivery equity investment & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a flat brokerage of ₹20 irrespective of the trading volume. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

Also read: Zerodha Review 2020 – Is Free Investing Legit? [Pros and Cons]

Angel Broking Introduction

Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.

In the past, Angel Broking worked as a full-service broker and offered a percentage based brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.

Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per trade. The same simple rate is applicable across all exchanges and segments.

One of the key advantages of trading with Angel Broking is that they provide investment advisory, guidance, and recommendations to their clients for investing in the stock market. Further, they also offer research reports on companies along with many other value-adding tools and services to their clients for free.

Quick link to open your FREE account with Angel Broking.

Zerodha vs Angel Broking Comparision

Name	Zerodha	Angel Broking
About	Zerodha is the largest stockbroker in India with +1.5 million clients and +10% of daily retail trading volumes across NSE, BSE, MCX. Located at Bangalore, Zerodha offers zerod brokerage on delivery trading and a flat rate of 0.03% or Rs 20 per executed on all other segments.	Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers free delivery trades and flat charge of Rs 20 for all other trades
Founded	2010	1987
Company	Private	Private
Main Office	Bangalore	Mumbai
# of Active Clients on NSE (Nov 2019)	9,09,008	4,12,809
Broker Service	Discount Broker	Full-Service Flat rate Broker
Supported Exchange	NSE, BSE, MCX, NCDEX	NSE, BSE, MCX, NCDEX
Brokerage Summary	Free for Delivery Trading and Rs 20 for all other trades	Free delivery trades and flat charge of Rs 20 for all other trades
Servies offered	Equity, Derivatives, Currency, Mutual Funds & Commodities	Equity, Derivatives, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.
Account Opening Charge	Rs 200	Rs 699 (Currently Waived)
Commodity Trading Opening charge	Rs 100	Rs 0
Annual Maintenance Charge	Rs 300	Rs 450 (Second years onwards)
Trading Platform	Kite 3 Web baased trading platform, Kite Mobile, Kite Connect API, Console, Pi, Sentinel, Coin	Angel iTrade, Angel Broking Mobile App, Angel SpeedPro, Angel BEE
Brokerage Charges
Equity Delivery	Free	Free
Equity Intraday	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Equity Future Charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Equity Options Charges	Flat Rs. 20 per executed order	Rs 20 per trade
Currency future charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Currency options charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Commodity Charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Minimum brokerage fees	0.03% Minimum	Flat Charges Rs 20
Call & Trade Charges	Rs 20 per executed order	Additional Rs 20 per executed order
Margin Offered
Equity Margin Delivery	No margin for delivery - Cash and carry	Upto 3x for equity cash
Equity Margin Intraday	Upto 20x (Based on stock)	Upto 6x
Equity margin futures	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Upto 10x (Buying/Selling)
Equity margin options	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Upto 10x (Selling) and 3x (Buying)
Commodity Margin	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Upto 5x
Currency futures	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Upto 8x
Currency Options	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Upto 8x (Selling) and 3x (Buying)
Addons
3-in-1 Account	Yes, with IDFC Bank	No
Research & Tips	No	Yes
Brokeage Calculator	Yes	Yes
Span Margin Calculator	Yes	Yes
Training & Education	Yes	Yes
Interactive Charts	Yes	Yes
Margin Against Shares (Equity Cash)	Yes	Yes
Margin Against Shares (Equity F&O)	Yes	Yes
IPO Services	Yes	Yes
Robo advisory	No	Yes
Other Features	Direct Mutual fund investments, Kite APIs, Sentinel, Streak, Sensibull	Research reports, Portfolio management system (PMS), Insurances
Pros	Zero brokerage charges for delivery trading, Simple and flat brokerage model in all other segments, Excellent trading platforms, Easy & fast online account opening, Direct mutual fund investments, Maximum brokearge of Rs 20	Free delivery trades; Full-Service Broker with Flat charges; Services offered in Equity, Mutual funds, Commodities, IPOs, PMS, Life insurances; Customised trading help; Robo Order, High Margin
Cons	No stock advisory or research reports	Angel Broking doesn't offer 3-in-1 account, Higher Maintenece charges
Promotion/Offer	Free delivery equity trading and Rs 20 or 0.03% wihchever is lower brokerage charge on all other trades	Right now - FREE Account Opening (Opening Charges 100% Waived)
Website	Quick Link to Open Account	Quick Link to Open Account

*Disclaimer: All pricing data was obtained from the published stockbroker’s web site as of 02/04/2020 and is believed to be accurate, but is not guaranteed. Account opening charges, margins, etc can vary from time to time depending on the active campaigns by the brokers and hence recommended to refer to the broker’s website for the latest updates.

Closing Thoughts

Both Zerodha and Angel Broking offers low (flat) brokerage and fast trading platforms for their clients.

Zerodha, being the biggest discount broker in India with over 22 lakh clients obviously adds trust and brand value. Moreover, Zerodha’s innovative initiatives like educational facility (Varsity), free direct mutual fund investments through COIN, investment in IPO’s from the same dashboard, partner portals like Streak, Sensibull, etc create more value for their clients.

On the other hand, Angel broking has built its reputation with over +30 years of experience in the broking industry. Since Angel Broking is a full-service broker, it offers a lot more segments than Zerodha like Portfolio management Services & Life Insurance. Moreover, a few notable advantages of Angel Broking over Zerodha is that they offer Research reports and robo-advisory to their clients, which Zerodha don’t.

Overall, if you’re looking for full-service facilities like investment advisory, Research reports, Robo-advisory, PMS, etc, then Angel Broking is a good alternative.

Nonetheless, if you wish to trade/invest on your own, but looking for essential add-on products like learning platform, Sensibull, Streak, etc and a user-friendly innovative trading platform, Zerodha is the go-to broker. Zerodha offers a little more benefits compared to Angel Broking for independent traders and investors.

May 13, 2020 Team Trade Brains Online Brokers 3 comments

Zerodha Review 2020 Is Free Investing Legit Pros Cons

Zerodha Review 2020 – Is Free Investing Legit? [Pros and Cons]

A complete Zerodha Review 2020– Brokerage, Trading Platform & More: Zerodha is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It offers a zero brokerage for delivery equity & direct mutual fund investments.

For all intraday, Futures & Options, currency, and commodity trades across NSE, BSE, MCX, it offers a brokerage of Flat ₹20 irrespective of the trading volume. It doesn’t matter whether you trade for Rs 1 lakh or 1 crore, you have to pay a flat low brokerage of Rs 20 per trade. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

In this Zerodha review, we will discuss the brokerage charges, account opening charges, maintenance charges, trading platforms, products, my personal experience of using Zerodha & more. By the end of this post, you’ll have a complete understanding of Zerodha trading services and whether this broker is right for you or not. Let’s get started.

Quick link to open a demat account with Zerodha.

Zerodha Review –Brokerage, Charges, Trading Platforms & More

1. Introduction

There are two types of stockbrokers in India. Full-Service brokers and Discount brokers. The full-service brokers offer a trading platform along with advisory. However, their brokerage charges are high. A few major full-service brokers in India are HDFC Securities, ICICI Direct, Motilal Oswal, etc.

On the other hand, discount brokers offer trading platforms with minimum brokerage charges. Nonetheless, they do not provide advisory services. The biggest advantage of a discount broker is that it saves a lot of brokerages for the traders/investors. On all other prospects, like performance, computerized trading systems etc- both offer similar facilities.

An important point to know here is that all the brokers- Full service or discount brokers are licensed and regulated in India by regulating bodies like SEBI.

Zerodha is a leading discount broker in India in terms of daily trading volume, growth and customer base. It is one of the most technologically advanced and cheap stockbrokers. Zerodha has over +1 million clients and contributes to over 10% of daily retail trading volumes across NSE, BSE, MCX.

Ironically, the term ‘Zerodha’ is derived from the fusion of an English and Sanskrit word. ‘Zero’+’Rodha’ where ‘Rodha’ means barrier. Overall, Zerodha means ‘Zero Barrier’.

It was started by Nitin Kamath, an Engineer by qualification, in 2010. Nithin bootstrapped and founded Zerodha in 2010 to overcome the hurdles he faced during his decade long stint as a trader. He was named one of the “Top 10 Businessmen to Watch Out for in 2016 in India” by The Economic Times for pioneering and scaling discount broking in India. Here are a few of the famous awards won by Zerodha recently:

— National Stock Exchange (NSE) “Retail brokerage of the year 2019” (& 2018)

— Outlook Money “Retail broker of the year 2017”

— Ernst & Young “Entrepreneur of the year (Startup) 2017”

2. Zerodha Brokerage Charges

Zerodha offers trading services to buy and sell stocks, futures & options in equities, commodities, and currency segment. Here are the Zerodha brokerage charges:

– Free equity delivery

All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.

– ₹20 intraday equity and F&O trades

₹20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.

Type	Brokerage Charges
Equity Delivery	Rs. 0 (FREE)
Equity Intraday	Lower of Rs. 20 per executed order or 0.03%
Equity Futures	Lower of Rs. 20 per executed order or 0.03%
Equity Options	Flat Rs. 20 per executed order
Currency F&O	Lower of Rs. 20 per executed order or 0.03%
Commodity	Lower of Rs. 20 per executed order or 0.03%

Quick note:

1. You can use this Zerodha Brokerage Calculator to get more ideas.

(Zerodha Brokerage Calculator)

2. Apart from brokerages, there are also a few other charges that you have to mandatorily pay on your transactions like Exchange transaction charge, STT, SEBI turnover charges, GST, etc.

You have to pay these charges no matter which stockbroker you prefer to trade in stocks and that too on both sides of transactions i.e. while buying and selling. However, the brokerage cost can be controlled by choosing a discount broker. For example, in the case of Zerodha, you can notice the total brokerage of Rs 40 for both sides of Intraday equity trading, even though the total turnover is Rs 8.4 Lakhs.

You can have read this blog post to understand the different charges while trading in stocks.

3. Zerodha Account Opening Charges & AMC

Here are the account opening charges for Zerodha

Equity Trading Account: ₹200
Commodity Account:₹100

If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 200+Rs 100 = Rs 300. Anyways, if you are just interested in trading in stocks i.e. equities, you can open demat and trading for equity account at Rs 200. The demat account annual maintenance (AMC) charge is Rs 300 per year.

4. Zerodha Products & Features

Zerodha has built its own trading applications for the customers. It offers different trading terminals, websites, and mobile apps (Android/iOS) which are free for the customers.

— Kite 3.0

Kite 3.0 is a modern technology-based trading platform with streaming market data, advanced charts, an elegant UI, and more. It is a minimalistic, intuitive, responsive, light, yet powerful web and mobile trading application offered by Zerodha. Kite provides Bandwidth consumption of fewer than 0.5 Kbps for a full market watch, extensive charting with over 100 indicators and 6 chart types, advanced order types like Brackets and cover, millisecond order placements, and more.

Overall, Kite provides an excellent experience to the users through its groundbreaking innovations presented with hassle-free usability.

— Kite mobile

This is a mobile version of KITE for a seamless experience for mobile-users and available in both Android and iOS devices.

— Coin

Zerodha Coin is a platform that lets you buy mutual funds online directly from asset management companies. This platform is absolutely free since August 24, 2018. Here, you can make your investments without any commissions.

With the help of Zerodha Coin, you can have Direct mutual funds in DEMAT form, with the convenience of one portfolio across equity, MF, currency, etc. Moreover, it also provides a Single capital gain statement, P&L visualizations, and more. This Coin by Zerodha has made investments through SIPs really simple and flexible.

Other Partner Products

Apart from the above products, Zerodha also offers a few other partner programs:

Smallcase: This thematic investment platform is powered by Kite Connect APIs. Smallcase helps users to invest in different themes by intelligently providing weighted baskets of stocks in each theme.
Sensibull: This is an options trading platform which offers simplified options trading for new investors by providing powerful trading tools. Sensibull aims to make options trading safe, accessible, and most importantly, profitable for all.

Besides, Zerodha has also started a few educational initiatives to improve financial literacy and increase the participation of the common people in the financial world. Here are a few other products offered by Zerodha

Zerodha Varsity: An educational platform to educate people about investing and trading. Zerodha Varsity offers free modules on Technical analysis, fundamental analysis, futures, options, risk management, trading psychology & more. Recently, Zerodha Varsity also launched its Varsity mobile app.
Trading Q&A: An online forum powered by Zerodha to answer people’s most troublesome investing and trading questions.

5. Pros and cons of Zerodha Discount broker

Here are a few advantages and disadvantages of using Zerodha trading platforms:

Pros of Opening Account with Zerodha

Zero Brokerage Charges for Delivery
Flat Charge for Intraday (Rs 20 or 0.03% whichever is lower per executed order for everything else)
Same pricing for across all exchanges
No upfront fee or turnover commitment
Z-Connect, interactive blog, and portal for all your queries
Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
Minimalistic, intuitive, responsive web-based trading platform Kite
No minimum balance required to open Zerodha trading account
Invest in direct mutual funds with same demat account through coin

Cons of Opening Account with Zerodha

No advisory services or research report.
3-in-1 account (Saving+Demat+Trading) not available.
Online IPO investment not available. (Now, Zerodha customers can invest in IPO’s through UPI payment. Read more about Zerodha IPO applying process here)

Note: Zerodha has recently started offering Zerodha IDFC FIRST Bank 3-in-1 account. However, to open a 3in1 account at Zerodha, you need to have an existing account with IDFC FIRST Bank. Accounts can only be opened online. Read more here.

6. Is Zerodha a Reliable Stockbroker? And is Free investing legit?

Is Zerodha safe for long-term investments? This is one of the biggest questions that come in the mind of first-time investors. Obviously, HDFC Securities, ICICI Direct, SBI cap, Kotak securities, etc are big brands in the name of the broking industry and been in the market for decades. Hence, they have built greater trust compared to Zerodha, especially for the ones who have never heard its name before.

Anyways, Zerodha, the discount broker, originated only in 2010. Therefore, if you’re not involved in the share market investments/tradings in the last decade, it’s no surprise to say that you might have not known this broker. However, in the short span of around 10 years, this broker has been able to beat all the big traditional brokers. Currently, Zerodha is the biggest stockbroker in India, based on the number of clients (over 15 lakh users), followed by ICICI Direct and HDFC securities ranking second and third.

Now, answering your question, Yes, Zerodha is safe and reliable. In fact, since origin, Zerodha has never faced any case of major violations from SEBI or any of the other exchanges. It is a profitable private company with no debts or liabilities. Here are a few points why Zerodha is safe and reliable for investors and traders.

Zerodha is a zero-debt financial services company. There is no borrowing of any kind.
There is no credit risk, less than 5% of Zerodha’s own capital is lent to customers in any form.
Zerodha own funds in the business are greater than 25% of all client funds put together.
Their ratio of ‘complaints to active clients’ is among the least on the exchange.
Zerodha is profitable as a business and has enough reserves to sustain, even if there was an extended downturn in the economy.

Moreover, Zerodha is partnered with Central Depository Services Limited. CDSL’s main function is the holding securities either in certificated or uncertificated form, to enable the book-entry transfer of securities. Therefore, when it comes to the security of the shares in your demat account with Zerodha, you do not need to worry at all. The stockbrokers are just the agents of depositories.

Your stocks are actually held by central depositories and not by the depository participants (brokers). Therefore, even if something didn’t work out well with Zerodha, your stocks in the demat account are safely intact with CDSL. In short, Zerodha is completely legit and reliable for your trading or long-term investments in the Share market.

7. My experience of using Zerodha

It’s been over three years since I’m using Zerodha and I’m satisfied with the trading services provided by Zerodha.

Initially, I started with ICICI direct as my broker, but later I switched to Zerodha when I realized that I was paying way too much brokerages for my trading transactions.

Most beginners do not consider the brokerage charges while calculating the profits. I use to make the same mistake. And that’s why many times the final profits in my bank account (after deducting the brokerage and other charges) disappointed me as it was considerably lower than what I calculated in my head. I wish I had switched to a discount broker earlier as it could have saved me a lot of ‘unnecessary’ brokerages and moreover trading experience is even better on Zerodah. Nonetheless, I use Zerodha for making all my stock investments now.

Besides, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard. But this issue is also solved by Zerodha. Investors can now apply for IPOs directly within the Zerodha console. And the best part is that the process is really simple.

Finally, a lot of people complain that Zerodha doesn’t provide advisory services or buy/sell calls. I believe that one should never invest or trade based on the broker’s recommendation. There’s a conflict of interest here as the brokers will always make money when you trade and doesn’t matter whether you win or lose. Therefore, they might always motivate investors to trade frequently. Overall, Zerodha not giving advisory services doesn’t bother me. Moreover, they make us for these cons by providing educational initiates like Varsity.

8. How to open your trading & demat account with Zerodha?

Opening a demat and trading account with Zerodha is really fast and hassle-free. In fact, if you’ve all the documents, you can open your account and start trading within an hour.

Here are the documents required to open a demat and trading account at Zerodha: PAN CARD, Aadhar Card, 2 Passport size photos, Canceled cheque/ Saving bank account passbook. I will recommend keeping photocopies of all these documents ready before you apply for opening the accounts.

To open your trading & demat account at Zerodha, go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the direct link.

Note: You can find the detailed explanation on how to open your demat and trading account at Zerodha here.

9. Closing Thoughts

In the last decade, Zerodha has earned trust and respect among the trading population by providing reliable and technologically advanced trading services. It is definitely the largest discount broker in India. If you are looking to open your brokerage account with a reputable brand that offers low brokerages, and have a fast trading platform, Zerodha is definitely one of the best options.

That’s all for this post. I hope this Zerodha review is useful to you. If you have any additional queries regarding Zerodha or if you want to share your review of Zerodha, you can post it in our forum. I’ll be happy to answer your questions. Have a great day!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

May 7, 2020 Kritesh Abhishek Online Brokers 26 comments

Where to open your Demat & Trading account?

A complete guide on where to open your Demat & Trading account (Updated): Two years back, I wrote an article on the difference between a demat and trading account. That article got a lot of attention from the readers, asking me to further elaborate on where to open these accounts.

As I didn’t cover which stockbrokers are suitable for which users in that article, I received a lot of queries from the readers regarding where to open demat and trading account. Most of them were beginners and therefore, I decided to write an article on the same which can be helpful for the newbie investors.

In this post, I’ll discuss the stockbrokers which I’ve personally used and researched. In my investing journey of the last five years, I’ve come across many trading platforms. From full-service brokers like ICICI direct, HDFC securities, SBI Smart, etc, to the newer discount brokers like Zerodha, Upstox, 5Paisa, Trade Smart Online, etc, I’ve reviewed them all. Moreover, being in the trading field, I need to remain updated with the latest brokers and their charges.

By the end of this article, you’ll have a good knowledge of where should you open your trading and demat account. I’ll try to keep things as simple as possible while answering. In addition, I’ll also disclose which stockbroker I use for trading in stocks. Therefore, make sure that you read this article till the end. I’m confident that it will be helpful to you.

Where to open your Demat & Trading account?

1) Difference between demat and trading account?

Before we dive into the topic, let me give you the smallest explanation of what’s the difference between demat and trading accounts so that we are all on the same page.

Just as money is kept in your savings account, similarly your bought stocks are kept in your demat account. When you buy a stock, it gets credited in your demat account. And when you sell it, it gets debited from the same. At any time, your demat account reflects all your holding stocks. By the way, a demat account is a short form for ‘Dematerialised account’.

On the other hand, a trading account is a medium to buy and sell shares in a stock market. It is used to place purchase or selling order for a stock in the market.

For example, let’s say you want to buy some shares. Then, you need to enter details like ‘Which share you want to buy?’, ‘How many quantities of shares you want to buy?’, ‘At what price you want to buy that shares’, etc. And all these placings of buy/sell order is done using a trading account.

While trading in Indian stocks, you’ll need to have both demat and trading account. Anyways, both these accounts are linked and can be opened with any stockbroker. Further, in the era of the internet, opening these accounts is really simple and fast.

2) Do you need a stockbroker to trade in stocks?

This is one of the frequently asked questions that I receive over email. Therefore, I needed to answer this one here.

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 is a stockbroker?

Basically, 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.

4) What are the types of stockbrokers in India?

There are two basic types of stockbrokers in India: Full-service brokers (Traditional Broker) & Discount brokers (Budget brokers).

— Full-service brokers

These are traditional brokers who provide trading, research, and advisory facility for stocks, commodities, and currency. These brokers charge commissions as a percentage of each trade executed by their clients. They also facilitate investing in Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance.

A few examples of top full-service brokers in India are:

— Discount brokers

These brokers just provide the trading facility to their clients for stocks, commodities and currency derivatives. They do not offer advisory services. However, these stockbrokers can save you a lot of brokerages while trading in stocks. Here, you need to pay a flat brokerage charge on the executed trades.

Here is a list of a few top discount stockbrokers in India:

5) Brokerage comparison while using full-service vs discount brokers

Let’s compare the brokerage charges of a full-service broker compared to a discount broker.

A full-service broker charges commission as a fixed percentage on every trade their clients execute. This commission can be somewhere between 0.25–0.55% of the overall trade. Here, the bigger is the transaction, higher is the brokerage.

On the other hand, the discount broker offers a flat brokerage charge. This charge can be somewhere between Rs 10–20 per trade.

Moreover, these charges are applicable to both sides of trading. Therefore, when you buy a share, you’ve to pay brokerage and when you sell these shares, you again have to pay these charges.

For example, full-service broker ICICI Securities that charge 0.275% as brokerage on Intraday trading. Therefore, the total brokerage in a trade will be 0.275%* 2 = 0.55%, if we include both buying and selling.

If you make an overall transaction of Rs 5 lakhs per month with ICICI direct, the total brokerage in a year will be equal to 0.55% * 5,00,000 * 12 months = Rs. 33,000

Now, let us look at the brokerage charges offered by discount brokers. The popular discount brokers in India like Zerodha or Upstox charges Rs 20 per trade.

Let us assume that you make 20 trades per month using such a discount broker. Here, your total brokerage in a year will be Rs 20 (brokerage) * 20 trades per month * 12 months = Rs 4,800.

Clearly, you can notice here that you can save a lot of brokerage charges while opting for discount brokers. Moreover, both these brokers provide a similar trading platform and hence overall experience is not much different. Overall, you are paying some un-necessary brokerage while trading with full-service brokers.

6) 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.

When you are opening your trading account with a stockbroker, it’s a long term relationship. You might trade in stocks for years after opening your account. And here, you do not want your brokerage firm to be shut down in between and all your bought equities getting trapped with them. Therefore, while picking your stock broker, first always check the reputation and reliability of the stockbroker. A simple google search or reading the reviews by the existing users can help to find red flags.

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.

7) Where should you open your demat and trading account?

By now, you would have got a decent idea regarding stockbrokers in India. Next, let’s discuss the central topic of this article- 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.

Moreover, with the rise of the internet, most of the information that you need to make trading/investment decisions are freely available online. If you want to read the research reports on companies, they too are freely available on websites like Trendlyne, markets mojo, etc.

Note: If you really need advisory to buy and sell stocks, it’s better to go with expert advisory services in this field, who can offer you personalized services rather than relying upon these big corporates for whom you might be a very small client.

8) Which stockbroker do I use?

I use Zerodha discount broker for making all my traders. It is the biggest stockbroker in India with over 2 million happy clients. Zerodha offers free equity delivery long term investments (zero brokerage) and a discount brokerage of maximum Rs 20 for all other trades.

Initially, I started my investment journey with ICICI direct. The reason I opened my account with ICICI was because of their good reputation and 3–in-1 account service facility. Basically, 3-in-1 means that you can open your saving, demat and trading account all at once. So, while opening your savings account with ICICI bank you can apply for the other two accounts as well.

I was happy with the services offered until I realized that I was paying too much brokerage charges and a chunk of my profit was paid unnecessarily to ICICI direct. Then, I started researching other stockbrokers where I can save these charges. Finally, I switched to Zerodha, the discount broker and I’m happy with the trading platform and services that it offers. Moreover, I am able to save huge brokerages after switching to Zerodha, which is always beneficial for small retail investors like you and me.

If you’re interested to open your account with Zerodha, here’s the direct link to the account opening application!

Note: You can also read my complete review on Zerodha stockbroker here.

Closing Thoughts

In this online era, buying and selling stocks is as fast as the click of your fingers. All thanks to the online stockbrokers.

There are many stockbrokers available in India and through this post, I tried to help you how to choose a broker for trading in stocks. 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!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

May 3, 2020 Kritesh Abhishek Online Brokers 17 comments

ANGEL BROKING VS 5PAISA broker comparison

Angel Broking vs 5Paisa – Which one is better?

Angel Broking vs 5Paisa Comparision: As of 2020, Angel Broking and 5Paisa are two of the leading discount brokers in India. Both of them have millions of clients and offer fast trading platforms & services. However, how do they differ and which one of them is better?

In this article, we are going to compare Angel Broking vs 5Paise by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, pros, cons, and more. This comparison between Angel Broking vs 5Paisa will highlight the major differences between these two discount stockbrokers and help you choose the best between them based on your preferences.

Angel Broking Introduction

Quick link to open your FREE account with Angel Broking.

5 Paisa Introduction

5Paisa is a discount broker that provides you the platform to trade in stocks, futures, and options at the lowest cost of Rs 20 flat per trade, even if you trade for Rs 10 Crore. 5Paise is a public company, which means that its stocks are traded on Bombay stock exchange and National stock exchange.

It is headquartered in Mumbai and is a part of India Infoline (IIFL), a leading non-banking financial institution in India with experience of over two decades (initially incorporated in 1995). 5paisa was re-launched with a new brokerage model for online retail broking services in late 2016. Later, it got de-merged from IIFL so that it can be listed on the stock exchanges. 5Paisa Capital started trading on NSE/BSE in November 2017, making it the first such listed financial digital marketplace.

5 Paisa Capital provides a platform for all financial products including equities, derivatives, commodities, mutual funds, AIFs, bonds & debentures, insurance, and personal loans. 5Paisa provides the trading facility in mobile, browser, and desktop platforms. The account opening process for 5Paisa is totally paperless based on Aadhaar.

Quick link to open your FREE Demat Account with 5Paisa

Angel Broking vs 5Paisa – Broker Comparision

Name	Angel Broking	5 Paisa
About	Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India and a strong network of 8500+ sub-brokers. Angel Broking offers free delivery trades and flat charge of Rs 20 for all other trades	5paisa.com, second largest discount broker in India, is part of IIFL group (India Infoline), India's leading financial services company. It offers a flat brokerage of Rs 20 per trade for its clients.
Founded	1987	2016
Company	Private	Public
Main Office	Mumbai	Mumbai
# of Active Clients on NSE (Nov 2019)	4,12,809	1,06,280
Broker Service	Full-Service Flat rate Broker	Discount Broker
Supported Exchange	NSE, BSE, MCX, NCDEX	NSE, BSE, MCX
Brokerage Summary	Free delivery trades and flat charge of Rs 20 for all other trades	Rs 20 Per Trade (Optimum Plan)
Servies offered	Equity, Derivatives, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.	Equity, Derivatives, Commodity, Currency, Mutual Funds
Account Opening Charge	Rs 699 (Currently Waived)	Rs 650 (Currently Waived)
Commodity Trading Opening charge	Rs 0	Can't trade in commodity
Annual Maintenance Charge	Rs 450 (Second years onwards)	Rs 45 per month (only for months when you trade)
Trading Platform	Angel iTrade, Angel Broking Mobile App, Angel SpeedPro, Angel BEE	Investor terminal, trader terminal, 5 Paisa Trade Station
Brokerage Charges
Equity Delivery	Free	Rs 20 per trade
Equity Intraday	Rs 20 per trade	Rs 20 per trade
Equity Future Charges	Rs 20 per trade	Rs 20 per trade
Equity Options Charges	Rs 20 per trade	Rs 20 per trade
Currency future charges	Rs 20 per trade	Rs 20 per trade
Currency options charges	Rs 20 per trade	Rs 20 per trade
Commodity Charges	Rs 20 per trade	Rs 20 per trade
Minimum brokerage fees	Flat Charges Rs 20	Rs 10 per trader (Higher Plans)
Call & Trade Charges	Additional Rs 20 per executed order	Rs 100/ call
Margin Offered
Equity Margin Delivery	Upto 3x for equity cash	Upto 4x for equity cash
Equity Margin Intraday	Upto 6x	Upto 20x
Equity margin futures	Upto 10x (Buying/Selling)	Intra-day: 3.5x - Carry forward: 1x (no margin)
Equity margin options	Upto 10x (Selling) and 3x (Buying)	Intra-day: 1x - Carry forward: 1x
Commodity Margin	Upto 5x
Currency futures	Upto 8x	Intra-day: 1 time - Carry forward: 1x
Currency Options	Upto 8x (Selling) and 3x (Buying)	Intra-day: 1 time - Carry forward: 1x
Addons
3-in-1 Account	No	No
Research & Tips	Yes	Yes (for higher plans)
Brokeage Calculator	Yes	Yes
Span Margin Calculator	Yes	Yes
Training & Education	Yes	Yes
Interactive Charts	Yes	Yes
Margin Against Shares (Equity Cash)	Yes	Yes
Margin Against Shares (Equity F&O)	Yes	Yes
IPO Services	Yes	Yes
Robo advisory	Yes	Yes
Other Features	Research reports, Portfolio management system (PMS), Insurances	Mutual Fund Investments, Research reports
Pros	Free delivery trades; Full-Service Broker with Flat charges; Services offered in Equity, Mutual funds, Commodities, IPOs, PMS, Life insurances; Customised trading help; Robo Order, High Margin	flexible brokerage plans (Optimum, Platinun, Titanium), Premium plans offer Cheapest brokerage, Research reports availalble (but at extra cost)
Cons	Angel Broking doesn't offer 3-in-1 account, Higher Maintenece charges	Call and trade Rs 100 per call, Higher charges of Rs per transaction on demat
Promotion/Offer	Right now - FREE Account Opening (Opening Charges 100% Waived)	Right now - No Opening Charges, Annual maintence charges (AMC) waived
Website	Quick Link to Open Account	Quick Link to Open Account

Closing Thoughts

From the above comparison, you can find that both Angel Broking and 5Paisa offer low brokerage, high margin, and fast trading platforms for their clients. Moreover, both of these brokers also provide additional services like investment advisory services, research reports, robo-advisory, etc. Anyways, trading platforms and customer service offered by Angel Broking is a little superior compared to the 5Paisa.

On the other hand, multiple brokerage plans offered by 5Paisa can be one of the biggest cons against Angel Broking. 5Paisa offers Optimum, Platinum, and Titanium plans for their customers. Different traders can choose the plan accordingly depending on their trading frequency, volume, and strategy. 5Paisa customers can enjoy a lot less brokerage annually if they go with Platinum or Titanium plans.

That’s all for this post. I hope this article on Angel Broking vs 5 Paisa was useful to you. If you’ve got any queries regarding these two brokers, feel free to comment below. Happy trading & investing. Cheers!

May 1, 2020 Team Trade Brains Online Brokers No comments yet

How to Open Demat Account at Angel Broking?

How to Open Demat Account at Angel Broking Online?: Angel broking is one of the leading full-service brokers in India which offer flat brokerage charge to its clients. It provides fast, modern, and easy to use trading platforms as well as expert advisory services to its customer base. In this post, we’ll discuss the exact steps to open demat account at Angel Broking online.

Angel Broking Introduction

One of the key advantages of trading with Angel Broking is that they provide investment advisory, guidance and recommendations to their clients for investing in the stock market. Further, they also offer research reports on companies along with many other value-adding tools and services to their clients for free.

Quick link to open your FREE account with Angel Broking.

Why should you open a demat account at Angel Broking?

With Angel broking, you can start trading in stocks, commodities, and currencies with a broking house having over three decades old expertise in the market. Here are a few of the key features of Angel Broking:

Cheapest full-service flat charge broker
Free equity investments – No charge involved in delivery trading
Flat Rs 20 per trade for Intraday, Futures & Options, Commodity and currency trading.
Fast account opening process
Get up to 40x margin on day trading
Free expert research reports & market advisory

Services Offered: Angel Broking offers its services in Equity, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.

Brokerage Charges:

Delivery charges: Rs 0
Intraday Trading: Flat ₹20 Per Trade
Equity F&O: Flat ₹20 Per Trade
Currency F&O: Flat ₹20 Per Trade
Commodity F&O: Flat ₹20 Per Trade

Documents required to open a demat account at Angel Broking

In order to open your demat account at Angel Broking, you’ll require the following documents. It is recommended to keep the scanned copies of these documents:

Aadhar Card
Pan Card
Bank proof (Cancelled cheque/Account Statement)

Here, basically you have to provide the bank proof for the bank that you want to link with your demat account. It can be any private or public national bank in India.

Quick Note: If you want to open your account online, it is required that your phone number should be linked with your Aadhar card. This is because you’ll be asked to complete online ‘eSign’ and for this step, you’ll receive an OTP on your registered phone number with Aadhar card.

Account opening charges at Angel Broking

Account opening charge: FREE (Currently Rs 699 Waived)
Annual Maintenance Charge: Rs 450 (Second year onwards)

Special Offer: Right now, Angel Broking is offering a 100% waiver on the account opening charges. Hence, you can open your demat account with Angel Broking for FREE. Here’s a quick link to open your FREE account with Angel Broking.

Short Answer to Open Your Angel Broking Demat Account

First of all, let me give you a short answer on how to open your demat account at Angel broking, before my step-by-step explanation.

To get started, here is the direct link to the account opening page at Angel Broking.

On this page, the first step is to signup by entering your full name, your city, mobile number, and verifying the OTP. Then, you’ll be required to enter your PAN, bank account, Aadhar verification, and personal details to continue with the signup. Finally, you’ll need to eSign and online self-verification to complete the procedure.

All the instructions are clearly mentioned in the each-step of the account opening page. If you are good at reading and following instructions efficiently, then you do not need to read this entire post. Just go to the account opening page, follow the instructions, upload the documents and your account will be opened.

Moreover, you’ll be assigned an angel broking executive once you sign up on the first step. Their details will be sent to you via message. He/She will help you out in the entire account opening process. If you face any difficulties while opening an account online, you can directly reach them out.

Detailed Step-by-step procedure to open your Angel Broking demat account online

Step 1: Go to the Angel Broking account opening page. Here’s the direct link.

Step 2: Enter your Full Name, City, and Mobile Number on the Account opening page. Here, you’ll receive an OTP to verify your phone number.

Step 3: On the next page, you’ll need to enter a few other important details. Here, you’ve to provide your date of birth, PAN Number, email id, Bank account number, and IFSC code. After entering the details, click on ‘Take me ahead’.

Note: You do not need to pay any account opening charges as they are waived.

Step 4: Next, you have to complete your KYC verification. You will be provided three options: 1) Share offline aadhar, 2) Share via DigiLocker 3) Enter details manually. In this post, we’ll discuss the first step where you can share your aadhar via Uidai. Nevertheless, sharing aadhar via DigiLocker is also a very simple process.

While verifying Aadhar via Uidai, first you’ve to ‘Download aadhar details’ by visiting the Uidai website. You can download the ZIP file by clicking on the link on that page. Next, you’ve to upload aadhar details via the same ZIP file here. Then, click on the ‘Proceed’ button.

Step 5: In this step, you’ve to upload documents and enter some other personal details.

Here, you’ve to provide your annual income, occupation, father, and mother’s name, etc. After that, you’ve to upload your PAN card and bank statement on the next page.

After entering details and uploading documents, click on ‘Continue’.

Step 6: Next is the eSign process which is very simple. Here, you’ve to enter your 12 digit Aadhar card number. After that, you’ll receive an OTP on your registered phone number with Aadhar. Enter the OTP on this page and click on ‘Submit’.

Step 7: The second last step is ‘In-person Verification (IPV)’. Here, you have to make a small video of your face and upload the video file to complete the IPV or self-verification. You can make a video using your phone or laptop. IPV is necessary during the online account opening. After successfully uploading the video, you’ll get a success message displaying ‘Thank you, we have received your IPV’.

Step 8: The final step is to submit the Power of Attorney (POA) form. This POA submission step is required by any broker with whom you open your demat account in India. (You can read more about POA here).

In this step, you’ve to download the POA form, physically sign it and courier or speed post this form to the Angel broking head office. Else, you can also ask the angel broking executive to come to your address and collect the signed POA form.

Note: Even without submitting the POA form, you can trade with Angel broking as your account has already been opened. However, for long term investments, you can buy stocks but can’t sell while delivery trading if you’ve not submitted POA form.

This is the complete process to open your FREE demat account at Angel Broking.

What Next After Opening Your Angel Broking Demat Account?

After completing the account opening process, you’ll receive the client code and password on your registered email. Along with it, you’ll also receive an onboarding email with instructions on how to login to your trading account.

You can go to the Angel Broking website and enter your login credentials to start trading or investing.

Else, you can also download the Angel Broking mobile app (which I’ll highly recommend). Angel broking offers an easy to use, and interactive mobile trading app where you can easily login using your credentials to trade or invest through your phone. Here’s a link to download the mobile app.

Closing Thoughts

Angel Broking is one of the leading stockbrokers in India which offers amazing trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX. Moreover, because of the simple and fast process, you can open your demat account at Angel broking within an hour if you’ve already got all the required documents.

In this post, we tried to cover the exact process to open demat account at Angel Broking. If you still have any questions, feel free to ask in the comment section below. Happy Investing!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

April 24, 2020 Kritesh Abhishek Online Brokers No comments yet

How to trade in ICICI Direct? Buy/Sell Stocks

A complete guide on how to trade in ICICI Direct to Buy and Sell Stocks: ICICI direct is one of the biggest online brokers for buying or selling a stock on the stock market. Using ICICI direct, you can buy or sell a stock within minutes using your phone/laptop. ICICI direct provides both web and app-based trading platform to their clients.

The brokerage charge for the ICICI direct is a little higher compared to the discount brokers. However, the superior services offered and a very user-friendly & easily understandable interface makes up to that. That’s why over million of users trade in ICICI direct for stocks, derivatives, commodities, and more.

In this post, we are going to discuss how to trade in ICICI direct. This is gonna be a very detailed post. Therefore, be with me for the next 5-10 minutes to learn the basics of trading with ICICI direct. Let’s get started.

Quick Video: How to trade in ICICI Direct?

For those of you who are here for a quick answer, here is a short video on how to trade in ICICI direct that can help you to learn the trading process fast. But, I will definitely recommend you reading this complete post in order to get an in-depth knowledge of the trading process in ICICI Direct. Here it the video:

(Source: ICICI Direct)

Few things to know for trading in ICICI Direct

First of all, you need to know that the market opens from 9:15 AM to 3:30 PM from Monday to Friday, excluding a few national holidays like Independence day, Republic day, etc. You can get the complete list of holidays in a year from BSE/NSE website.

In general, you can place an order to buy (or sell) stocks during market days when the market is open. At this time you can place orders to buy the stock at the current market price or you can set a limit price (say you want to buy a stock whose market price is 90, only when the price falls to 87 or less. Then, you place a limit price 87 against the market price which is 90. Here the trade will only execute when the stock reaches the limit price).

Anyways, you can also place orders outside the market timings i.e. before 9:15 AM or after 3:30 PM. But the order will be executed only when the stock market opens. Although these are advantageous for those who can’t place an order during the market time (for employees with a day job), there are few disadvantages of placing the orders after market timings.

For example, you won’t know the opening price of the stocks for the next day, so it might open at a higher price the next day which may lead you to reset your order price or cancel (and you might even not be able to buy the stock). So, it would be preferable to place orders for the stocks only during the market time so that you have the full information on the current market price of the stock.

Now that you understand the background of the stock market timings and how the market works, let’s move towards the central topic of the post – how to trade in ICICI direct? That is, how to buy and sell stocks using ICICI direct trading account.

Also read: Demat vs Trading Account – What’s the difference?

Step by step guide for How to trade in ICICI direct:

Step 1: Login to your ICICI Direct account

First, you need your account credentials to login in to the ICICI direct. If you have a 3-in-1 (Saving+Demat+Trading) account in ICICI Direct, you can have the access to buy/sell (using trading account) and hold your stocks using the demat account. Therefore, if you are new to trading and want to invest in stocks using ICICI, I will suggest you open a 3-in-1 account in ICICI Direct.

After you have opened your account in the ICICI direct, you will get your username and password to log in. The first step is to google and search, ‘ICICI Direct’. Open the first link that comes in the search engine (www.icicidirect.com). Then, click on login in the top right-hand corner.

The website will ask your credentials like username, password, and date of birth/pan card. After entering the correct details, you can enter your ICICI direct account.

Step 2: Allocate funds for buying stocks

The next step after logging in your ICICI direct account is to allocate funds in the trading account.

The concept of allocating funds in very simple. Let’s say you have Rs 50,000 in your saving accounts in ICICI bank (or any other bank linked to your trading and demat account). And you want to buy stocks worth Rs 10,000. Then, you need to transfer that amount from your saving account to the trading account so that you can place the order of the stock worth Rs 10,000. This can be done by allocating the fund.

‘Allocate fund’ option can be found on the landing page after logging and is highlighted here.

Typically, this step of allocating funds can be done within a minute using your ICICI Direct account. The steps are as follows:

Go to option Secondary, Market Equity, ETF (Note: if you want to buy IPO, Mutual funds then you have to go to other option).
Select ‘ADD’ option and enter the amount you need to add.
Then, click on ‘Submit’.
You can see the allocated fund in the ‘Current Allocation’ after submitting.

Step 3: Place order for the stock

This is the third and final step for purchasing stocks using ICICI direct. After allocating the fund, you should select the option ‘Place order’, which is present in the equity option. This option is highlighted here:

After selecting the place order, you have to follow the following steps. The steps are simple and can be performed within a minute:

First, select the ‘Cash’ option in the Product.
Next, you have the option to select the stock exchange. You have two options- NSE (National stock exchange) or BSE (Bombay stock exchange). You can choose anyone and it doesn’t make much difference as prices are almost the same on both exchanges and follows almost the same trend. (I generally prefer NSE.)
Then you can view your limit on how much money you have to buy the stocks. This is the allocated money that you added in step 2. If you need more money, you can add an amount by allocating extra funds.
Now enter the stock. For example, if you want to buy a stock of ‘Tata Motors’, start typing ‘tata mot..’ on the stock option. The drop-down options will appear and you can select your stock from the list.
Next, you need to enter the quantity. the number of stocks that you want to buy.
After that, you have to select that option for order validity. Here you have three options – DAY, IOC or VTC. If you want to place an order for that day only, you should select Day. If you are placing a limit price and want to continue the placed order for the next few days, then you can select VTC 0valid till cancellation. (Prefer ‘day’ order)
Next, you have to select the Order Type. There are two options here – Market and Limit. I have already explained these earlier in this post. If you want to buy the stock at the current market price select ‘Market’ option. If you want to buy the stock at a limit price, select the ‘Limit’ option.
For example, let’s say that Tata motor’s stocks are currently trading at a market price of Rs 469.10. If you want to buy that stock at market price, then you should select the ‘Market’ option. However, if you want to buy the tata motors stock only when the price is Rs 465 or lower, select the ‘limit’ option.
If you have selected ‘limit option’ in the Order Type, then you need to enter the ‘Limit Price’ in the next step. (This is Rs 465 in the previous example of Tata Motors).
The last option is the stop loss trigger price. You can leave this option blank and is not a must-fill option. This is an order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor’s loss on a position in a security. However, it is more beneficial for day traders, not investors. You can study more about stop trigger price here.
Finally, select ‘Buy Now’

After clicking on ‘Buy Now’, you will be directed to a confirmation page. You need to confirm the details. And Tada!!!! You have bought a stock! Congratulations!!!!

If you want to re-confirm the stock that you’ve bought, you can do check by selecting the option ‘TRADE BOOK’ in equity. The option is highlighted here.

In Closing

After the trade is complete, it generally takes two-three days for the stock to reflect in your portfolio. Do not worry if can’t find the stock in your portfolio on the very next day since you executed the trade. It will eventually show up. The process takes T+2 days for transferring it from the previous owner to your account. Read more about stock settlement process in India here.

So, that’s all. This was the exact process of how to trade in ICICI Direct. In addition to using the web-based ICICI direct portal, you can also trade in stocks using ICICI direct mobile app for android and iOS devices. The procedure to buy/sell stocks is the same even you use mobile apps to trade. Here’s the direct link to download ICICI direct mobile app on Google play store.

Finally, I hope this post on how to trade in ICICI direct to buy and sell stocks is useful to the readers. If you have any doubts or need any additional help, feel free to comment below. I will be happy to help you out. Happy investing.

P.S. If you’re new to stocks and confused where to start? Here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. Enroll now and start your stock market journey today!

Tags: How to trade in ICICI Direct, How to trade in ICICI Direct in India, buy stocks how to trade in ICICI Direct, How to trade in ICICI Direct demat account, How to trade in ICICI Direct trading account

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

April 10, 2020 Kritesh Abhishek Investment Basics, Online Brokers 73 comments

8 Best Discount Brokers in India - Stockbrokers List 2019 cover

8 Best Discount Brokers in India – Stockbrokers List 2020

8 Best Discount Brokers in India – Stockbrokers List 2020: With the rise of Zerodha, the discount broker which was founded in 2010, the Indian broking industry saw a massive disruption. As these discount brokers were offering a cheaper brokerage plan, they were able to attract a lot of customers compared to the expensive traditional brokers. After this disruption, many of the existing brokers and firms started copying the concept and offering similar cheaper plans.

After around a decade since these brokers started getting attention, discount brokers are becoming more and more popular in recent years. As a matter of fact, many of such discount brokers are able to outrank the well-determined and big ‘conventional’ trading firms. In this post, we are going to discuss eight of such best discount brokers in India.

Here, we’ll be evaluating the discount brokers in India based on the key features like their brokerage charges, account opening charges, maintenance charges, services offered, trading platforms, pros, cons and more. By the end of this article, you’ll have a better understanding of the different discount brokers in India so that you can choose the one that suits you the best. Let’s get started!

What exactly is a discount broker?

Discount brokers offer low brokerage, high speed and a fast platform for trading in stocks, commodities and currency derivatives. The brokerage charge while trading with these discount brokers are way lower compared to the traditional brokers in India like HDFC Securities, ICICI direct, SBI cap, etc.

Besides, the business model of a discount broker is quite straight forward. They offer a flat brokerage rate for every trade that their client makes, and it does not depend on the size of the trades. This rate can is usually between Rs 10 or 20 per trade.

On the other hand, full-service brokers charge a fraction of fee on the transaction volume. This commission can be as high as 0.3-0.7% of the transaction volume. Therefore, as the volume of the transaction increases, you have to pay more and more brokerage.

Now that you have a basic understanding of the discount vs full-service brokers in India, let us discuss eight of the best discount brokers in India which are worth investigating.

Top Picks For Best Demat & Trading Account in India

	No 1 STOCKBROKER IN INDIA Zerodha Free equity investments \| Flat ₹20 intraday and F&O trades	TB Rating ★★★★★	APPLY NOW
	GET FREE DEMAT ACCOUNT Angel Broking 0 Brokerage on Equity Delivery \| Rs 20 per order for Intraday‎ and F&O trades	TB Rating ★★★★★	APPLY NOW
	GET FREE DEMAT ACCOUNT 5Paisa Fix brokerage of Rs. 20 per trade	TB Rating ★★★★	APPLY NOW

Best Discount Brokers in India

1. Zerodha

Zerodha, founded in 2010 by Nitin Kamath, is the biggest discount broker in India. It has over +1.5 million clients and contributes to over 15% of daily retail trading volumes across the Indian Stock Market. Its mobile app ‘KITE’ has got over +1,000,000 downloads on the play store.

Quick fact— According to the Dec 2018 report by NSE, Zerodha is the biggest stockbroking firm in India (client-wise), outranking many old and big broking corporates like ICICI direct, HDFC Securities, Sharekhan, etc. Through its innovation and practical approach, Zerodha has been able to outrank all these big players.

Zerodha brokerage charges

– Free equity delivery: All your equity delivery investments (NSE, BSE), absolutely free — ₹0 brokerage.

– ₹20 intraday equity and F&O trades: ₹20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades across NSE, BSE, and MCX.

Zerodha Demat And Trading account opening Charges:

For opening a trading and demat account at Zerodha, here are the charges:

— Equity Trading Account: ₹200

— Commodity Account:₹100

So, if you wish to open the Trading, Demat & Commodity account with Zerodha, the total account opening charges will be Rs 300. Further, the annual maintenance charge (AMC) for the demat account is Rs 300.

Services offered: Zerodha offers trading and investment services in equity, derivatives, currency, mutual funds & commodities.

Trading Platforms: Kite 3.0, Kite Mobile, Console, Pi, Sentinel, Coin

Pros of Zerodha:

Free Equity Delivery
Flat max brokerage per trade is Rs 20
Innovative & User-Friendly trading platform
Big brand value and customer support
Direct Mutual Fund Investment from same demat account

Cons of Zerodha:

No research report, market tips/recommendations

Quick Link to open an account with Zerodha

Note: You can read the detailed review on Zerodha here.

2. Angel Broking

Incorporated in 1987, Angel broking is a big brand having +30 Years of experience in the broking world and +1 million happy customers. They have a presence in over 1800+ cities in India. Angel Broking offers the trading facility in Equity, F&O, Commodities, and currency across BSE, NSE, NCDEX & MCX.

Although Angel Broking worked as a full-service broker and offered a percentage brokerage charge to its clients for over two decades. However, they recently changed their business model (Nov 2019) from percentage brokerage to flat rates to compete with rapidly growing discount brokers like Zerodha, 5Paisa, Upstox, etc.

Angel Broking now offers a flat rate brokerage plan, named ‘Angel iTrade PRIME’. Here, the delivery trading is FREE of cost. And for all other segments i.e. Intraday, F&O, Currencies & Commodities, they charge a fixed rate of ₹20 per. The same simple rate is applicable across exchanges and segments.

One of the key advantages of trading with Angel Broking is that they provide guidance/recommendations for investing in the stock market along with research reports on companies and many other value-adding tools and services.

Services Offered: Angel Broking offers its services in Equity, Commodity, Currency, PMS, Life Insurance, ETFs, IPOs & Mutual Funds.

Angel Broking Brokerage Charge:

Delivery charges: Rs 0
Intraday Trading: Flat ₹20 Per Trade
Equity F&O: Flat ₹20 Per Trade
Currency F&O: Flat ₹20 Per Trade
Commodity F&O: Flat ₹20 Per Trade

Account Opening Charges with Angel Broking:

Account opening charge: Rs 0 (Currently Waived)
Annual Maintenance Charge: Rs 450 (Second year onwards)

Trading Platform: Angel iTrade, Angel Broking Mobile App, Angel BEE

Pros of Angel Broking:

Cheapest full-service broker
Fast account opening process
Flat brokerage charges,
Up to 48x leverage,
Expert Research Reports & market advisory

Cons of Angel Broking:

No 3-in-1 account
Call & Trade are charged extra

Quick link to open your FREE account with Angel Broking

3. 5Paisa

5Paisa is a part of IIFL (India Infoline) and offers the cheapest stock brokerage in India. IIFL launched 5Paisa to offer a lower brokerage platform for its clients and to compete with the fast-growing discount broking industry.

Services offered: Apart from trading in equity, currency, commodity, 5Paisa also offers its services in mutual funds, Insurances, Personal loans.

5Paisa Brokerage charges

5Paisa offers free trading in equity and flat brokerage in other segments. Here are the brokerage charges offered by 5Paisa:

— Delivery Trading: Rs 20 per trade
— Intraday Trading: Rs 20 per trade
— Equity Futures: Rs 20 per trade
— Equity Options: Rs 20 per trade
— Currency Futures: Rs 20 per trade
— Currency Options: Rs 20 per trade

5Paisa Demat And Trading account opening Charges:

— Account opening charges: FREE (Rs 650 Waived)

— Annual Maintenance charges: Rs 45 per month (only for months when you trade)

Trading Platform: Investor terminal web platform, trader terminal, 5Paisa share trading mobile app

Pros of 5Paisa:

Free delivery trading
A low brokerage of flat Rs 10 per trade
100% paperless account investing
Investment in stocks, mutual funds & insurance from the same account
Lower maintenance charges
Research reports and advisory (for higher plans)

Cons of 5Paisa:

No 3-in-1 account
Higher exchange transaction charges
No commodity trading facility

Quick link to open your account with 5Paisa

4. Upstox

Upstox is a fast-growing discount broker, backed by a group of leading investors including Kalaari Capital, Ratan Tata, GVK Davix, etc. It is also known as RKSV. Upstox started as RKSV in 2012 and rebranded to Upstox in 2015.

Services offered: Upstox offers trading services in equity, currency, and commodity

Upstox Brokerage charges

Upstox offers two different brokerage plans (basic and pro plan). Delivery trading in free in both these plans. Here are the brokerage charges:

— Delivery: Rs 0

— Intraday Trading: Rs 20 per executed trade or 0.01 whichever lower (Basic Plan)

Upstox Demat And Trading account opening Charges:

— Account opening charges: Rs 300

— Annual Maintenance charges: Rs 150

Trading Platform: Upstox Pro Web Trading Platform, Bridge for AmiBroker, Developer Console, Option Chain Tool, Upstox MF Platform

Pros of Upstox:

Free delivery trading,
Fast paperless demat and trading account opening,
Margin against share is available,
Priority brokerage

Cons of Upstox:

3-in-1 Account not available
Cannot make direct trades in IPO & FPO, NCDs,
Margin Funding not available on delivery trades

Quick link to open your account with Upstox

5. Trade Smart

Trade smart is a Mumbai, India based discount broker good for traders and investors looking for low brokerages, high margins, and a fast trading platform. Unlike most discount brokers, Trade smart online is not a recent setup. It is a part +25 years old VNS Finance & Capital Limited, which is a traditional broker in India. It has over 50,000+ happy customers, averaging a daily turnover of over Rs. 5000 crores

Services offered: Trade smart online offers brokerage services in stock, futures & options, commodity, and currency trading segments.

Trade Smart Online Brokerage charges:

This discount broker offers a flat brokerage of Rs 15 per trade irrespective of the trading volume in its ‘Value’ trading plan.

Further, it also proposes a ‘Power’ trading plan with a brokerage of 0.007% on the transaction, which is suitable for the small volume traders. Here are the brokerage charges for delivery and intraday trading:

— Delivery: Rs 15 per trade (Power plan) or 0.07% (value plan)

— Intraday Trading: Rs 15 Per trade (Power plan) or 0.007% (Value Plan)

Trade Smart Online Demat And Trading account opening Charges:

— Account opening charges: Rs 400

— Annual Maintenance charges: Rs 300 (Second year onwards)

Right now, Trade Smart Online is offering a flat 100% off on the Account Opening Charges for the Trade Brains’ readers. You can open your FREE Trade Smart Online account by clicking this link.

Trading Platform: NEST Trader, SINE(Mobile App), SineWeb

Pros of Trade Smart Online:

Low and Unique Brokerage Plans,
Higher margin for trades,
Zero additional software charges,
Zero Demat AMC charge for the first year

Cons of Trade Smart Online:

3-in-1 not available,
No direct IPO Investment,
Call and trade at Rs 20 per executed trade (plus brokerage)

Quick link to open your FREE account with Trade Smart Online

6. SAMCO

Incorporated in 2015, SAMCO is another low brokerage cost discount broker in India. However, SAMCO differs from other discount brokers by offering higher leverage for trading to its clients. Here, customers can get up to 4x Delivery Leverage in the Cash Markets, Upto 80x Leverage for Nifty, 33x leverage for stocks and 60x for commodity.

SAMCO Brokerage charges:

Here are the brokerage charges offered by SAMCO:

— Delivery Trading: 0.20% or ₹20 per trade whichever is lower

— Intraday Trading: 0.02% or ₹20 per trade whichever is lower

SAMCO Demat And Trading account opening Charges:

— Account Opening Charges: Rs 0

— Annual maintenance charges: Rs 400 (Demat account)

Services offered: Samco offers trade facilities for stocks, F&Os, Commodities, and Currency in its dashboard.

Trading platform: SAMCO Trader (Omnesys NEST Trader), StockNote (Mobile Trading App), SAMCO Web Xpress (Website), SAMCO STAR

Pros of Samco:

FREE Trading and Demat Account opening,
Excellent margin products available for traders,
Flat max rate Brokerage Plan Rs 20 per trade
AADHAAR based instant paperless account opening.

Cons of Samco:

Online IPO, FPO Application not available
Mutual Fund investment is not available
Doesn’t have branches to offer local offline support

Quick link to open your account with SAMCO

7. Wisdom Capital

Incorporated in 2013, Wisdom Capital is an online discount brokerage firm providing services in stocks, futures, options on NSE and BSE and commodity trading on MCX & NCDEX. It also offers zero brokerage in its FREEDOM plan which attracts a lot of customers.

Wisdom Capital Brokerage charges:

Wisdom Capital offers three different brokerage plans to its customers: Freedom, Pro & Ultimate. Customers can choose whichever suits them the best. Here are the brokerage charges for each plans:

Freedom Plan:

Freedom plan offers ZERO brokerage in all segments
However, this plan does give a very little or no margin/exposure and hence might not be suitable for active traders.

Pro Plan:

The pro plan by Wisdom capital is designed for professional traders.
Suitable for the traders who need higher intraday exposures/margins
Delivery trading brokerage: 0.005% of the transaction
Intraday trading brokerage: 0.005% of the transaction
For rest, the brokerage is Rs 9 per trade (for NSE futures & options, currency & Commodity Trading at MCX).
Pro plan offers an intraday margin In NSE cash up to 40x MIS.

Ultimate Plan:

The ultimate plan is designed for high-frequency traders
Delivery trading brokerage: 0.007% of the transaction
Intraday trading brokerage: 0.007% of the transaction
For rest, the brokerage charged is Rs 15 per lot in options, 0.005% NSE futures, currency & Commodity Trading at MCX.
Ultimate plan by Wisdom capital offers intraday margin In NSE cash up to 60x MIS

Wisdom Capital Demat and Trading account opening charges:

— Account Opening Charges: FREE

— Annual maintenance charges: Lifetime 999+ Taxes

Services offered: Wisdom capital offer services in equities, future, and options, currency, and commodities on NSE, BSE, MCX & NCDEX

Trading platform: NEST Trader (trading terminal), BSE Bolt – a trading platform by BSE to trade across stocks listed on it.

Pros of Wisdom Capital:

Zero brokerage in FREEDOM Plan,
Flexible brokerage plans depending on client preference,
High exposure/margin in higher plans

Cons of Wisdom Capital:

No facility to invest in IPO, FPO, Mutual Funds, FDs, and NCDs
Not much focus on developing technology platforms
Average customer support

Quick link to open your account with Wisdom Capital.

8. Tradejini

Incorporated in 2012, Tradejini is a Bangalore based discount broker which offers a brokerage of 0.01% or ₹20 per executed order. It offers a single integrated platform for Equity, Derivatives, Commodities & Currency trading.

Tradejini Brokerage charges:

— Delivery Trading: 0.10% or ₹20 per trade whichever is lower

— Intraday Trading: 0.01% or ₹20 per trade whichever is lower

Tradejini Demat & Trading Account Opening Charges:

— Account Opening Charges: Rs 300 (Trading), Rs 300 (Commodity)

— Annual maintenance charges: Rs 300 (Demat AMC)

Services offered: Tradejini offers its services in equities, currencies, commodities and also ‘Mutual Funds’.

Trading platform: NEST Trading terminal, Web-based trader, Now mobile

Pros of Tradejini:

Low Brokerage Charges
Single trading platform for all transactions and segments,
In house CDSL depository participant

Cons of Tradejini:

Doesn’t offer 3-in-1 account,
No facility to invest in IPO, FPO, FDs, NCDs and Offer For Sale (OFS),
Only non-agriculture based commodity trading allowed
Does not allow GTC orders

Quick link to open your account with Tradejini

9. Fyers (Bonus)

Incorporated in 2015, Fyers is Bangalore based fast-evolving online discount stock broker founded by young entrepreneurs with broad experience in trading and the stockbroking industry. Apparently, FYERS word is an acronym of “Focus Your Energy & Reform the Self”, which represents the core philosophy of the company.

Services offered: Fyers offer services in equity Cash, F&O and Currency Derivatives segments at NSE.

Fyers Brokerage charges:

— Delivery Trading: Rs 0

— Intraday Trading: Flat brokerage fee of maximum ₹20 per executed order.

Fyers demat and trading account opening charges:

— Account Opening Charges: Rs 0

— Annual maintenance charges: Rs 0 (Demat AMC Waived)

Trading tools: Fyers One (Trading Terminal), Fyers Markets (Mobile Trading App), Fyers Web Trader, Thematic investments

Pros of Fyers:

Free online account opening
Free delivery trading and low brokerage
Advanced charts, real-time screeners and analytics
Thematic investment platforms for investing in the latest themes
Moderately high exposures- Offers up to 16 times margin in equity intraday segment

Cons of Fyers:

Higher demat account maintenance charges
Slightly higher exchange transactions compared to other discount brokers

Quick link to Open Account with Fyers

Closing Thoughts: Discount brokers in India

While choosing a stockbroker, look for the broker which offers a reasonable brokerage charge, low yearly maintenance cost, high-quality trading tools, active customer service, and no hidden account fees. Besides, put your priority and personal trading style in preference of the brokerage firm before opening your account.

These days, the discount brokers often start a new campaign every month to attract new customers by offering Zero account opening charges, referral clients benefits or even brokerage cashback. The competition among the brokers is challenging them to innovate faster, give more customer support and hence traders/investors are able to enjoy better trading facilities and services.

Need more guidance to help you pick the right online stockbroker. Here are the best resources to read further:

April 5, 2020 Team Trade Brains Online Brokers 12 comments

How to Open a Demat and Trading Account at Zerodha?

How to open a demat and trading account at Zerodha? (Updated: Jan 2020): When I first started investing, I used ICICI direct as my stockbroker for opening my demat and trading account. Although I was happy with the facilities and platforms provided by it, I soon realized that ICICI Direct was very expensive.

Many times, profits were killed by the brokerages in ICICI direct. The worst part was paying too much of brokerage even when you were selling the stock at a loss. Then, I asked for feedback from my friends who were using SBI Smart and HDFC securities. They both were also paying high brokerages and suggested not to go with them.

Finally, after researching a lot, I opened my second demat and trading account at ZERODHA.

Zerodha is the biggest discount broker in India with over 10+ lakhs customers. It contributes to over 15% of all retail order volumes in India daily by trading and investing in NSE, BSE, MCX, and MCX-SX. The charges offered by Zerodha are nominal and the trading platform provided by it is also fast and friendly.

It charges a brokerage of 0.03% or Rs 20 per executed order, whichever is lower, irrespective of a number of shares or their prices.

This is way cheaper compared to ICICI direct which asked a brokerage of 0.55% on each transaction in equity. If you buy stocks for Rs 50,000 in ICICI direct, then you have to pay a brokerage of Rs 275 (On the other hand, Zerodha will ask for a maximum of Rs 20 any trade). Further, as this amount is charged on both sides of the transaction (buying & selling), hence you have to pay a total of Rs 550 for the complete transactions (which is way too expensive than Zerodha).

In short, if you are new to the investment world, I would recommend opening accounts in discount broker such as Zerodha so that you can save lots of brokerages.

To get started, here is the direct link to the account opening page at Zerodha.

Why should you open a demat and trading account at Zerodha?

If you are still confused about why you should open a demat and trading account at Zerodha, then here are top reasons:

Rs 0 (FREE) for equity delivery trades.
Rs 20 or 0.03% whichever is lower per executed order intraday trading and for everything else
Same pricing for across all exchanges
No upfront fee or turnover commitment
Z-Connect, interactive blog, and portal for all your queries
Over 1.5 million happy customers with a reputable brand name
300+ dedicated support team to ensure the fastest turnaround time for your queries via email or phone
Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
Minimalistic, intuitive, responsive web-based trading platform Kite
Average exchange margin utilization of 55% vs. an industry average of 70%—lower risk.

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

How to open a demat and trading account at Zerodha?

Documents required to open a demat and trading account at Zerodha.

Here are the documents required to open a demat and trading account at Zerodha. I will recommend keeping soft copies of all these documents ready before you apply for opening the accounts as you’ve to upload them during the account opening process:

PAN CARD
Aadhar Card
Canceled cheque/ Bank statement
Your Signature on a piece of paper
Passport size photos

*Optional– Income proof: It is mandatory to submit income proof if you wish to trade in Futures and options – Equity, Commodity, and Currency. You can submit Form-16, IT acknowledgment copy, 6-month Bank statement or your latest salary slip as proof. Anyways, ignore this document if you are planning to invest only in just stocks, and not in derivatives, commodity or currency.

Account opening charges at Zerodha

Here are the account opening charges at Zerodha

Demat and Trading Account: Rs 200
Commodity Account: Rs 100

(Note: This is the Revised account opening charges updated in December 2019 by Zerodha)

If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 200+Rs 100 = Rs 300. However, if you want to trade just in equity (stocks), then you need to pay the charge of Rs 200 only.

Now, there are two ways to open a demat and trading account at Zerodha:

Online method
Offline method

Using the online method, you can open your account with Zerodha within 15 minutes, if you have all the required documents.

However, in the online method, to complete the eSign process, you will have to authenticate it with an OTP. So, make sure you have the number is linked to your Aadhaar. If not, you will not be able to complete the process. If the number linked to your Aadhaar is inactive, or if you don’t have any number linked, then you can visit your nearest Aadhaar Seva Kendra to get it updated.

Anyways, if you don’t want to use your Aadhaar, you can still open your account via the offline route. However, I would recommend you to open online as it is fast and easier.

In the trading world, you need to be tech-savvy and comfortable with doing things online. All the transactions (buy/sell) etc that you’re going to perform in future, once your account is opened, will be online and through advanced trading platforms. They will require you to be technically smart. And therefore, start taking the online route as you can’t ignore the digital path in the future.

How to open your account with Zerodha Online?

Short Answer to Open Your Zerodha Account

First of all, let me give a short answer on how to open your account at Zerodha before my step-by-step explanation.

To get started, here is the direct link to the account opening page at Zerodha.

On this page, the first step is to signup using your mobile number and verifying the OTP. Then you’ll be required to enter your PAN, bank account, Aadhar verification, and personal details to continue with the signup.

Besides, if you face any difficulties while opening an account online, you could contact Zerodha at – 080 4913 2020.

A Quick Intro to DigiLocker

While opening your account online with Zerodha, it will ask you to connect with your DigiLocker account. However, if you are new to DigiLocker, let me give you a quick introduction about it.

I was quickly impressed with DigiLocker concept when I first heard about it in early 2017. DigiLocker is an online service provided by the Ministry of Electronics and IT, Government of India under its Digital India initiative. I always keep this app on my mobile phone and let me tell you why.

If you live in a city, many times, you may face a similar situation like this. You went out to buy some groceries from a nearby shop or to drop someone. And because of a hurry, you forgot your wallet. This means that you don’t have your Driving license or vehicle registration doc with you. Next, if a traffic police stop you, then it might be a little trouble for you to explain to them why you traveling without docs.

However, if you have the DigiLocker app on your phone, you can show the driving license and vehicle registration from the app itself. Motorists can show docs in Digi locker during a traffic check as it is provided by the government of India. Moreover, it is more secure and acceptable by traffic police compared to the camera pic that you keep in your phone gallery.

Further, you can also keep all your other important docs in DigiLocker app like Aadhar card, Pan Card, Driving License, Voter Id, Education certificate, etc.

Overall, if you don’t have a DigiLocker account yet, I’ll highly recommend you to open one and download the app on your phone. It will help you to keep all your docs secured.

Moreover, this account is required while performing Aadhar verification during your Zerodha Account opening.

———————————————————

Detailed Step-by-step procedure to open your account with Zerodha online

Now that you’ve got a basic idea of how to open your account at Zerodha online and what are the docs/things required, next, let me give you a detailed step-by-step explanation of the process:

Step 1: Go to the Zerodha account opening page on your browser. Here is a direct link.

Step 2: Enter your mobile number to sign-up. You’ll receive an instant OTP to verify the mobile number.

Step 3: Enter your full name and email id. Please enter your email address correctly as you’ll again receive an OTP to verify your email id. This is the same email where you’ll receive all your future correspondence from Zerodha. Enter the OTP that you’ve received on your email to verify your email address.

Step 4: Next, enter your PAN and date of birth (DOB) details in the field provided.

Step 5: Complete the account opening payment.

For equity– you’ve to pay Rs 200 and for commodity, the charge is Rs 100. You can complete the payment through UPI or Net-banking/Card payment.

Tick the checkboxes according to your requirement and click on ‘Pay & Continue’ button. Make sure to uncheck the commodity account, if you’re not planning to trade in it and save Rs 100.

After payment, you will see the Congratulations message displayed on the screen and receive an email regarding the payment confirmation.

Step 6: After completing the payment, it will ask you to connect Aadhar details via Digilocker.

As already mentioned earlier, you need to create a ‘DigiLocker: Towards Paperless Governance’ account and link your Aadhar with it. Click on ‘Connect to DigiLocker’ and this will open a new page to sign up to Digilocker using your phone number.

If you already have an account, click on ‘Sign in’ option in the bottom.

Step 7: After entering your DigiLocker account, select the Aadhar card. If you’re just created a new account, enter your Aadhar number and verify using OTP received on your phone.

After that, you need to click on ‘LINK YOUR DIGILOCKER WITH ZERODHA’.

Step 8: Once your Aadhar verification is complete, a new screen will come displaying “Let’s finish the application”. Here, you need to fill up more details starting by filling up Bank Details i.e. your bank account number, bank name and branch’s IFSC Code.

Below that, you have to fill some details like Marital status, Father’s first name, Father’s last name, etc. After entering the details, click ‘CONTINUE’

Step 9: Next is IPV Verification over webcam/phone.

IPV or In-person-verification is a process where a depository participant in personal verifies documents and other details as per the law by SEBI. It is compulsory for every investor to go through the in-person verification process before opening a demat and trading account.

Here, they’ll display an OTP on the screen. You need to write down this OTP show on a piece of paper or your smartphone. Then, hold the piece of paper/ mobile phone with the code in front of your mobile phone/ webcam.

Click on “Start IPV”, then click on “Take Video” and finally on “SAVE IPV”.

Step 10: Next, you will have the option to either Digitally sign the application with Aadhaar (mobile OTP) or else print & courier it. I will suggest you selecting Aadhaar Option as it is a faster approach.

Step 11: Upload scanned copy of the documents: Bank Account Proof, your current signature, PAN. Income Proof is optional & only required if you want to trade Futures & Options, currency, and commodity.

Step 12: Next, it’s time to eSign. Click on ‘eSign Equity’ button and proceed to the next step. Enter the ‘Security Code’ received on your registered Mobile no/Email and click on ‘submit’.

Step 13: In the next window, enter your Aadhaar number, tick the checkbox and click on ‘Request OTP’ button. Here, enter the OTP number received on your mobile. With this the eSign process for Equity is complete.

Note: If you also opted for commodity trading account, repeat the same process by clicking on ‘eSign commodity’ as shown in ‘Step 12 ‘.

Step 14: Once you’ve completed the application sign up, you will have to download the Demat POA (Power of attorney) form, fill it up & send it to the address mentioned below.

Address:

Zerodha, #153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase,
Bangalore – 560078

Besides, here are the complete instructions on how to fill the POA form.

Note: Although you can start trading from the day you receive your client-id and password, nevertheless, do send the POA and nomination documents as soon as possible. If your POA has not been received by Zerodha, then you won’t be able to sell the stocks (however, you will be able to buy stocks). Hence, do fill and send the documents as soon as you can.

Offline Account Opening Process

How to open your demat and trading account with Zerodha offline?

You can also open your account with Zerodha offline. However, the offline account opening charges are different than the online charges. Here are the charges for offline account opening:

Rs. 400 – for Trading & Demat Account
Rs. 600 – for Trading, Demat & Commodity account

In this approach, you will have to download application forms from Zerodha website, print out the forms, fill it up and sign it. If you need help at any point in filling out the application form you can call us on 080 4913 2020.

Here are the applications forms that you’ll need to fill and courier for account opening:

Application Form: Trading Account & Demat Account – Equity Segment
Application Form: Commodity segment
POA (Power Of Attorney) – Already included in the Application form above
ECN (Electronic Contract Note) for enabling Commodity segment – Already included in the application form 2
Nomination Form: In case you would like to appoint a nominee to your trading and DEMAT account like your wife, father, mother or any other.

The documents required for opening your account offline is the same as that of the online process. You need to get a photocopy of your PAN Card, Address proof (Aadhar Card, Driving License, Voter-Id etc), Cancelled Cheque/Bank statement, Income proof & Passport size photographs. You also have to cross sign as self-attest on all these docs. You can find the list of all acceptable docs for account opening here.

Once you fill it up and sign it, you have to send the application forms over to the Zerodha head office address:

#153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase, Bangalore – 560078

Alternatively, you can schedule a meeting with a Zerodha representative at an address, date and time as per your convenience, by calling up the account opening helpline (080 4913 2020) or by placing a request with the sales manager assigned to you.

Here, a Zerodha representative will contact you and direct you to keep all such necessary documents ready at the decided time and place of the meeting. The representative would take all necessary signatures and self-attested documents/attachments as required to complete the account opening procedure.

What Next After Opening Your Zerodha Account?

Once your account is open, you can log in to this link or use the KITE app on your mobile. Here’s the link to the KITE trading platform.

Alternatively, you can also download the KITE app on android/iOS to start trading/investing in stocks. Besides, you can find the list of other Zerodha products like Console, Coin, Connect API, etc here.

Closing Thoughts

I will recommend using the online method while opening your account. Zerodha is working towards the Digital India initiative and you should be a part of it too. Although online methods seem to have too many steps, they do not take too long. Once you’ve started the application form, you can build a flow and complete the form within 15-20 minutes.

The offline method is good if you do not have an Aadhar card and you want to provide another address proof like Driving license, Voter Id, etc. However, if you are living in a village/small city, it might be a little difficult for you to get a Zerodha executive. Moreover, the offline method can easily take 7-10 days to open a demat and trading account.

That’s all. These are the steps to open a demat and trading account at Zerodha, online and offline. I hope this post on ‘How to open a Demat and trading account at Zerodha?’ is useful to the readers. If you have any doubts, comment below.

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

April 4, 2020 Kritesh Abhishek Online Brokers 143 comments

Demat vs Trading Account – What’s the difference?

Hi Investors & Traders! Today, I am writing this post regarding the demat vs trading account because of the popular demand by our readers. Many of the readers of ‘Trade Brains’ asked me to cover this topic as they are constantly confused about what is a demat and trading account and their difference.

Therefore in this post, I am going to explain what is the difference between the demat and trading accounts in a very simplest possible words.

Most of the newbies who enter the stock market might already know that they’ll need a demat and trading account to start trading/investing in India. However, the majority of beginners do not know the difference and consider both the demat account and trading account to be the same. But in reality, both these accounts are entirely different and serve different purposes.

Difference between demat and trading account

— Trading Account

A trading account is a medium to buy and sell shares in a stock market. In simple words, it is used to place buy or sell order for a stock in the exchange.

Different stockbrokers offer different trading tools to their clients to simplify their trades. For example, Zerodha, the biggest stockbroker in India offers ‘KITE’ as their platform to trade in stocks. Once you have opened your trading account with a stockbroker, you can place your buy/sell orders using those platforms.

(Image: Kite Trading Platform by Zerodha)

— Demat Account

Demat account is the short form for ‘Dematerialised account’. It is similar to a bank account. Just as money is kept in your savings account, similarly your bought stocks are kept in your demat account.

In other words, a demat account serves as a facility where stocks that you buy are deposited and the stocks sold are taken away. Demat account is used only for the storage of stocks, not for transactions (buying/selling).

Example of Demat and Trading Accounts

Let us understand the difference between trading and demat account further with the help of an example. Assume that you wish to buy 100 stocks of Maruti Suzuki. Here, the sequence followed during the procedure will be as follows:

First of all, you’ll need to have a savings equal to or greater than the buying amount in your savings account.
Next, you’ll transfer the money from saving account to trading account.
Now, you’ll buy stocks of ‘Maruti Suzuki’ from the stock exchange by using your trading account and paying the amount.
Finally, the money is transferred to the seller through your trading account and stocks of ‘Maruti Suzuki’ will be transferred to your demat account.

Now let us assume that after a few months, you wish to sell 20 stocks of ‘Maruti Suzuki’ from your holdings of 100 stocks. Here, the sequence followed will be as follows:

First, you’ll place a sell order in the market using your trading account to find a buyer.
If a buyer is found, then the shares will move from your demat account to the buyer.
Finally, the money gained by selling your stocks will flow through your trading account to your linked savings account.

Also read: 8 Best Discount Brokers in India – Stockbrokers List 2020

Quick Fact About Demat Account

Before the internet became popular in India, there were no demat accounts. Share certificates were provided whenever you buy stocks (on papers). However, there were many limitations to using paper share certificates. They used to get torn, stolen, faced safety-related issues or the ink just gets fade away with time.

Nevertheless, after coming of the internet from the mid-1990s, the stocks started getting kept in the electronic dematerialized form in the demat account of the buyers. It resolved most of the limitations of the old paper share certificates.

Also read: Where to open your Demat & Trading account? – A Beginner’s Guide

A few other points to know about demat and trading account

Demat and trading accounts are opened together (also known as 2-in-1 account) with most of the popular stockbrokers in India. For example, Zerodha, Angel Broking, 5 Paisa, etc.
A few big stockbrokers (generally bank brokers) also offer a 3-in-1 account i.e. Saving+Demat+Trading account to their clients. For example ICICI Direct, HDFC Securities, etc.
In general, there are no annual maintenance charges for a trading account, where for the demat account this maintenance charge may vary from broker to broker. It is typically around Rs 300-400 per year.
These days, the investors and traders can open instant (paperless) demat and trading account within 10 minutes with major stockbrokers. Nonetheless, the facility of offline account opening is still popular in India and offered by all these brokers.
The account opening charge for demat and trading account also varies from broker to broker. A few brokers offer free account opening. However, the majority of them will charge somewhere between Rs 300-500 to open your brokerage account.
In addition, you are also allowed to open multiple demat and trading accounts using same PAN card. For instance, You can have multiple accounts- one in ICICI direct and other in Zerodha.
Finally, choose your broker wisely to open your demat and trading account if you want to avoid unnecessary charges and risks.

Also read: How to Open a Demat and Trading Account at Zerodha – No 1 Stockbroker in India?

Summary

Let us quickly summarize what we discussed in this article regarding trading and demat account in India.

A trading account provides a platform to buy or sell the share in the market. It acts as an intermediary between your saving accounts and demat accounts. In simple words, it takes share from your demat account and sells them in the market.

On the other hand, it takes money from your savings account and buys a share to keep in a demat account. Further, a demat account is a facility to keep your shares in an electronic dematerialized form.

That’s all. I hope this post on the difference between demat and trading account is useful to the readers. If you have any doubts, comment below. I will be happy to help you out. Happy Investing!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

March 27, 2020 Kritesh Abhishek Investment Basics, Online Brokers 7 comments

Zerodha vs 5Paisa Compare Brokerage, Margin, Charges & More

Zerodha vs 5Paisa: Compare Brokerage, Charges, Margin & More!

Zerodha vs 5Paisa – Stockbroker Comparision: Zerodha and 5paisa are two of the biggest discount brokers in India. In this article, we are going to compare Zerodha vs 5Paisa by looking into their brokerage charges, account opening charges, maintenance charges, exposure margin, trading platforms, and more.

This comparison between Zerodha and 5Paisa will highlight the major differences between these two brokers to help you find the best between 5paisa and Zerodha, based on your preferences.

Zerodha Introduction

Zerodha, founded in 2010 by Nitin Kamath, is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform. It has over +2.2 million clients that contribute to over 15% of daily retail trading volumes across BSE, NSE, and MCX.

In terms of brokerage charges, Zerodha offers a zero brokerage for delivery equity investment & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a flat brokerage of Flat ₹20 irrespective of the trading volume. Therefore, you can save a lot of brokerage charges on your trades using Zerodha as your broker.

Also read: Zerodha Review 2020 – Is Free Investing Legit? [Pros and Cons]

5 Paisa Introduction

5Paisa is a discount broker that provides you the platform to trade in stocks, futures, and options at the lowest cost of Rs 20 flat per trade, even if you trade for Rs 10 Crore.

5 Paise Capital provides a platform for all financial products including equities, derivatives, mutual funds, commodities, AIFs, bonds & debentures, insurance, and personal loans. The account opening process for 5Paisa is totally paperless based on Aadhaar. 5Paisa provides the trading facility in mobile, browser, and desktop platforms.

Zerodha vs 5Paisa Comparision:

Name	Zerodha	5 Paisa
About	Zerodha is the largest stockbroker in India with +1.5 million clients and +10% of daily retail trading volumes across NSE, BSE, MCX. Located at Bangalore, Zerodha offers zerod brokerage on delivery trading and a flat rate of 0.03% or Rs 20 per executed on all other segments.	5paisa.com, second largest discount broker in India, is part of IIFL group (India Infoline), India's leading financial services company. It offers a flat brokerage of Rs 20 per trade for its clients.
Founded	2010	2016
Company	Private	Public
Main Office	Bangalore	Mumbai
# of Active Clients on NSE (Nov 2019)	9,09,008	1,06,280
Broker Service	Discount Broker	Discount Broker
Supported Exchange	NSE, BSE, MCX, NCDEX	NSE, BSE, MCX
Brokerage Summary	Free for Delivery Trading and flat charge of Rs 20 for all other trades	Rs 20 Per Trade
Servies offered	Equity, Derivatives, Currency, Mutual Funds & Commodities	Equity, Derivatives, Commodity, Currency, Mutual Funds
Account Opening Charge	Rs 200	Rs 650
Commodity Trading Opening charge	Rs 100	Can't trade in commodity
Annual Maintenance Charge	Rs 300	Rs 45 per month (only for months when you trade)
Trading Platform	Kite 3 Web baased trading platform, Kite Mobile, Kite Connect API, Console, Pi, Sentinel, Coin	Investor terminal, trader terminal, 5 Paisa Trade Station
Brokerage Charges
Equity Delivery	Free	Rs 20 per trade
Equity Intraday	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Equity Future Charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Equity Options Charges	Flat Rs. 20 per executed order	Rs 20 per trade
Currency future charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Currency options charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Commodity Charges	Rs 20/ trade or 0.03% whichever is lower	Rs 20 per trade
Minimum brokerage fees	0.03% Minimum	Flat charge of Rs 10 per trade (for higher plans)
Call & Trade Charges	Rs 20 + 18% GST Order	Rs 100/ call
Margin Offered
Equity Margin Delivery	No margin for delivery - Cash and carry	Upto 4x for equity cash
Equity Margin Intraday	Upto 20x (Based on stock)	Upto 20x
Equity margin futures	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Intra-day: 3.5x - Carry forward: 1x (no margin)
Equity margin options	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Intra-day: 1x - Carry forward: 1x
Commodity Margin	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	NA
Currency futures	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Intra-day: 1 time - Carry forward: 1x
Currency Options	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin	Intra-day: 1 time - Carry forward: 1x
Addons
3-in-1 Account	Yes, with IDFC Bank	No
Research & Tips	No	Yes (for higher plans)
Brokeage Calculator	Yes	Yes
Span Margin Calculator	Yes	Yes
Training & Education	Yes	Yes
Interactive Charts	Yes	Yes
Margin Against Shares (Equity Cash)	Yes	Yes
Margin Against Shares (Equity F&O)	Yes	Yes
IPO Services	Yes	Yes
Robo advisory	No	Yes
Other Features	Direct Mutual fund investments, Kite APIs	Mutual Fund Investments, Research reports
Pros	Zero brokerage charges for delivery trading, Simple and flat brokerage model in all other segments, Excellent trading platforms, Easy & fast online account opening, Direct mutual fund investments, Maximum brokearge of Rs 20	Cheapest broker, flexible brokerage plans, Research reports available (but at extra cost)
Cons	No stock advisory or research reports	Call and trade Rs 100 per call, Higher charges of Rs per transaction on demat
Promotion/Offer	Free delivery equity trading and Rs 20 or 0.03% wihchever is lower brokerage charge on all other trades	Right now - No Opening Charges, Annual maintenance charges waived
Website	Quick Link to Open Account	Quick Link to Open Account

*Disclaimer: All pricing data was obtained from the published stockbroker’s web site as of 02/01/2020 and is believed to be accurate, but is not guaranteed. It can vary from time to time depending on the active campaigns by the brokers and hence recommended to refer to the broker’s website for the latest updates.

Closing Thoughts

Both Zerodha and 5Paisa offers low brokerage and fast trading platforms for their clients.

Zerodha, being the biggest discount broker in India with over 22 lakh clients obviously adds trust and brand value. Moreover, initiatives like educational facility (Varsity), investment in IPO’s from the same dashboard, free direct mutual fund investments, etc create more value for its clients. Moreover, Zerodha has got a bigger range of partner products to help traders and Investors like Streak, Sensibull, Learn app etc.

On the other hand, a few notable advantages of 5Paisa over Zerodha is that they offer Research reports and robo-advisory to their clients, which Zerodha don’t. However, this facility by 5Paisa is offered only to its clients with higher plans. In addition, the multiple flexible brokerage plans offered by 5Paisa can also be a little advantageous for volume traders.

In conclusion, both these brokers have some advantages and disadvantages over others. Zerodha with its evolved trading app and partner platforms vs 5Paisa with its flexible brokerage plans and advisory services. Nonetheless, if you see from the broad perspective, Zerodha offers a little more benefits compared to 5Paisa for independent investors and traders who are not looking for advisory and are happy with a single discount brokerage plan.

March 2, 2020 Team Trade Brains Online Brokers 2 comments

How to apply for an IPO with Zerodha Account?

In this article, you’ll find out the exact process to apply for an IPO with Zerodha account. However, before we begin, let me tell you my experience of applying to an IPO’s through Zerodha Account.

I’ve been using Zerodha for over four years now and been a happy customer. This discount broker has helped me save a lot of un-necessary brokerage charges if I had used any other full-service broker instead.

Anyways, there was one ‘cons’ of using Zerodha as a broker which bugged me in the past. And it was not having the facility for the customers to directly invest in Initial public offerings (IPOs) through the Zerodha dashboard.

Prior to this recently launched facility, the Zerodha customers have to use ASBA (Application Supported by blocked account) on their net banking portal to apply for IPOs. However, this was not a simple one-click process unlike what most of the other traditional big brokers like ICICI direct, HDFC sec, etc offered.

Although I am not a regular investor in IPO’s and only invest if I find the new offer a lot appealing. Nonetheless, having a simple process to invest gives flexibility whenever the opportunity arrives. Nonetheless, investors can apply for IPO’s directly within Zerodha console. And the best part is that the process is really simple.

Before you apply for an IPO

Obviously, you’ll need a Zerodha account if you want to apply to IPO’s with Zerodha. If you haven’t opened your account with Zerodha yet, here’s a detailed blog post on how to open your Zerodha Demat and trading account. Else, you can use this direct link to open your account.

Next, you need is a UPI account. And this is nothing new. These days everyone uses UPI to make fast and secure payments. For example, you can use apps like Phonepe, Bhip app, iMobile by ICICI, etc. Here is the link to the UPI apps and banks that allow IPO payment.

Also read: Zerodha Review –Discount Broker in India | Brokerage, Trading Platform & More

A Quick List of Upcoming IPO’s in 2020

Stock	Date	Price range	Min. qty.
SBI Cards and Payment Services	02 Mar 2020 - 05 Mar 2020	750 - 755	19
Antony Waste Handling Cell	04 Mar 2020 - 06 Mar 2020	295 - 300	50
NSDL	To be announced	-	-
Indian Railway Finance Corporation (IRFC)	To be announced	-	-
Barbeque Nation	To be announced	-	-
National Commodity & Derivatives Exchange (NCDEX)	To be announced	-	-
Life Insurance Corporation (LIC)	To be announced	-	-
Computer Age Management Services (CAMS)	To be announced	-	-
UTI Asset Management Company	To be announced	-	-
Bajaj Energy	To be announced	-	-
Equitas Small Finance Bank	To be announced	-	-
Burger King India	To be announced	-	-
Chemcon Speciality Chemicals	To be announced	-	-

Steps to apply for an IPO with Zerodha Account

1. Login to Zerodha Console. Here’s the quick link.

2. On the top menu bar, go to Portfolio → IPO.

3. On this page, you can find the list of the active IPO’s.

4. Select the IPO that you wish to apply from the list of active IPOs and click on ‘Place bid’.

5. A pop-up screen will launch with IPO information. Here you can find details like issue date, issue price, market lot, discount (if any), minimum order quantity, etc.

6. Next, enter your UPI id. Make sure to select the correct bank account.

7. Place your bid by entering the ‘Quantity’ and ‘Bid price’.

For the quantity, it should be minimum order quantity or the multiple of the lot size. For the ‘bid price’ you can enter any price between the offered issue price range. Anyways, for the maximum chances to get an allotment, it is recommended to use the ‘Cut-off’ price.

8. After filling the details, click on the ‘checkbox’ stating that you’ve read the prospectus and you’re are an eligible UPI bidder as per the applicable provisions of the SEBI.

9. Finally, recheck the details and click on ‘Submit’.

10. Besides, if you want to make any changes if the bidding later, simply click on ‘Bid details’ on the IPO page and make the changes.

Once submitted, you’ll receive the request to complete the “UPI Mandate” on your UPI app.

Please note that sometimes it may take a few hours to receive the UPI mandate request. Anyways, in my case, it was instantaneous and I received payment request on my iMobile ICICI app as soon as I submitted the application on the Zerodha Console. Accept the request once you receive it to complete the process.

On accepting the payment request, your UPI app will block the IPO funds in your bank account till the date of allotment. You’ll receive an SMS from exchange once your application is placed successfully.

If you’re allotted the IPO shares, the amount will get debited from your account and shares will be credited in your demat account. On the contrary, if shares are not allotted, then blocked funds are released on the date of the payment. You can read more about the process of IPO share allotment to retail investors here.

That’s all. This is the exact step-by-step process to apply for an IPO with Zerodha Account.

Closing Thoughts

Zerodha is continuously innovating to provide a better investing and trading facility to its customer. The procedure to apply for IPO is a lot simpler now. You should definitely check it out. Further, comment below if you face any difficulty in applying for IPO using Zerodha account. Happy Investing!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

March 2, 2020 Kritesh Abhishek Online Brokers 2 comments

Zerodha Product Codes Explained- CNC, MIS, SL & More.

Understanding Zerodha Product Codes- CNC, MIS, SL & More (Updated Feb 2020): Hello Investors. For the last couple of weeks, I have been getting a number of messages and comments to explain the different product codes that are used in Zerodha marketplace.

Zerodha is one of the biggest discount brokers in India and it has over 15+ lakh clients. The different zerodha product codes will be simple to use once you understand it. So let’s get started.

Also read: How to Open a Demat and Trading Account at Zerodha?

What are Zerodha Product Codes?

Zerodha product codes are basically short forms for different codes to perform different actions. For example QTY, PRICE, CNC, MIS, SL, etc. Here is a screenshot of the KITE app showing different codes.

You can note the different zerodha product codes in the above image. Understanding what these quotes mean is really important if you want to place your buy/sell order correctly.

Let’s start with the two easily understandable codes are QTY and PRICE. Here, QTY means the number of quantities of stock that you want to buy. PRICE is the cost at which you want to buy the share.

Here are the other codes are the ones that we are going to discuss in this post:

CNC: Cash N Carry
MIS: Margin Intraday Square-off
MKT: Market Order
LMT: Limit Order
SL: Stop Loss
SL-M: Stop loss market
Trigger Point
Disclosed quantity

Anyways, before we discuss the zerodha product codes, here are a few frequently used terms that you need to know first.

— Market order

When you want to buy/sell a share at the current market price, then you need to place a market order. For example, if the market price of a company is Rs 100 and you are ready to buy the share at the same price, then you place a market order. Here, the order is executed instantaneously.

— Limit order

A limit order means to buy/sell a share with a limit price. If you want to buy/sell a share at a given price, then you place a limit order. For example, if the current market price of a company is Rs 200, however you want to buy it at Rs 195, then you need to place a limit order. When the market price of ABC falls to Rs 195, then the order is executed.

— Stop-loss

STOP LOSS is used to limit the losses when the price of a stock starts falling. For example, let’s say that you are holding a stock at Rs 300. However, the price of that stock starts falling and you fear to book losses. In such scenario, you can place an order to limit the loss to Rs 295. It specifies that you want to execute a trade but only if the specified price is met. Stop-loss is a very good tool to limit the risks.

Also read: #27 Key terms in share market that you should know

Common Zerodha product codes (SL, MIS, CNC, etc)

LMT: This is used for placing a limit order.
MKT: This is used for placing a market order.
Trigger Price: This is used in stop loss orders. It is the price at which you want ‘stop loss’ to be triggered.
Stop Loss (SL): This is used to place a stop loss at the limit price. Here you need to specify a Limit price and a trigger price. When the trigger price is reached, then the stop loss order is sent to the exchange at a limit order mentioned by you.
Stop loss market (SL-M): This is used to place a stop loss at market price. Here you just have to specify the trigger price. When the trigger price is reached, then the stop loss order is sent to the exchange at market price.
MIS in Zerodha: MIS stands for Margin Intraday square off. It is used for Intraday trading with leverage. All MIS position is auto squared off at the end of the day session.
CNC: It stands for Cash n carry. CNC is used in delivery based equity. There is no leverage provided in CNC. However, there is also no auto square off at the end of the session.
Disclosed quantity: This allows traders to disclose only a part of the actual quantity of the stocks that he bought or sold. This disclosed quantity should be more than 10% of the order quantity. For example, let’s say you bought 1000 stocks. However, you can disclose only 400 stocks (if you want). Only the discloses quantity will be shown on the market screen.

Quick Note: What is the use of disclosed quantity? The order book is open to all active person on the exchanges. So, all these people can see what quantity of stocks you have ordered. However, the problem here is that once they know your quantity and price, they can change their own order (increase/decrease their order amount/quantity). This might affect your orders adversely. Disclosed quantity is beneficial for those people who trade in large quantities.

Also read: Full service brokers vs discount brokers: Which one to choose?

Now, these were the terms that are shown in the marketplace of zerodha. However, if you click on ‘ADVANCED’, you can find more ZERODHA product codes. Although you can execute all your buy/sell orders without changing the advanced order, however, it’s better to have full knowledge.

Advanced Zerodha Product Codes (BO, CO, IOC, etc)

Here are the advanced zerodha product codes:

REGULAR: Regular orders
BO: Bracket order
CO: Cover order
AMO: Aftermarket order
DAY: Day validity
IOC: Immediate or Cancel

AMO: It stands for aftermarket orders. You can use this facility to place an order when you can’t buy/sell during the trading time. You can place your order between 4:00 PM to 08:59 AM i.e. after the post-closing session and before the pre-opening session.

BO: Bracket order is used for higher leverages (than that of MIS). Here, you place an Intraday buy or sell at limit order with a target price and a compulsory stop loss. All the orders are squared off before the end of the day.

CO: Cover order is used for placing intraday buy or sell at the market order for high leverage (that trading using MIS). Here you just have to specify the stop loss. All the orders will be squared off before the end of the day.

IOC: It stands for ‘Immediate or cancel’. Here the order is executed as soon as it is released. If the order fails to execute, then it is immediately canceled. In the case of part execution, the remaining quantity (which is not executed) will be canceled.

Summary

Let’s quickly summarise a few of the most frequently used zerodha product codes discussed today.

LMT: This is used for placing a limit order.
MKT: This is used for placing a market order.
Stop Loss (SL): This is used to place a stop loss at the limit price.
MIS in Zerodha: MIS stands for Margin Intraday square off.
CNC: It stands for Cash n carry. CNC is used in delivery based equity.

That’s all for this post. I hope the article is useful to the new investors and traders. If you have any questions regarding any zerodha product codes, please comment below. I will be glad to help. Happy Investing!!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

February 12, 2020 Kritesh Abhishek Online Brokers 32 comments

How to buy a Stock using SBI demat account?

A short guide on how to buy a stock using SBI demat account – SBI Smart (Updated)? State bank of India is the biggest public sector bank in India. After the merger of the SBI with its associate banks (State Bank of Bikaner and Jaipur, State bank of Hyderabad, State bank of Mysore, State bank of Patiala and State bank of Travancore), SBI has entered the league of top 50 global banks with over 500 million customers and 22,500 branches.

Because of this huge number of customers in state bank of India, the active number of demat and trading account holders in SBI is also high. However, even though they have a 3-in-1 account, many such users do not know how to use their demat account. Or many are yet in the process to learn how to buy a stock using the SBI demat account and use it for trading.

Therefore, in this post, we are going to discuss step-by-step procedures on how to buy a stock using SBI demat account. Be with us for the next 10-15 minutes to learn the skills of how to buy a stock using SBI demat account. After reading this post, you will be able to easily start trading using SBI demat and trading account to buy and sell your favorite stocks.

However, before we start this post, let me quickly summarise the key features and charges while trading in stocks with SBI. Let’s get started.

Introduction to SBI Cap Securities

SBICap securities is a trusted brand and subsidiary of State Bank of India (SBI) with an aim to offer trading facilities to the SBI clients. Being a subsidiary of the largest national bank in India, the SBI cap has got over a million clients with a demat and trading account. They offer full service to their clients like investing/trading in stocks, derivatives, currency, mutual Fund, IPOs, ETFs, Bonds, FDs, Insurance, and more.

Charges and Brokerages

Account opening charge: Rs 850
Annual Maintenance Charge (AMC): Rs 500
Delivery Trading charges: Higher of 0.50% or 5 Paisa per share
Intraday Charges: Higher of 0.15% of 5 Paise per share

Trading Platform: SBIcap offers the SBI Smart web trading platform for trading in stocks, mutual funds, commodities and more.

The biggest advantage of trading with SBIcap securities is that they offer a 3-in-1 account. That is, users can open savings, demat and trading account, all at one place. Moreover, being an umbrella platform to invest in stocks, bonds, mf, fds etc with large office presence also makes it attractive for the clients.

On the downside, a few disadvantages of trading with SBI cap is its high brokerage charges (compared to the newly fastly growing discount brokers) and below-average customer service.

How to open SBI Demat and Trading Account?

We have already published a detailed article on how to open demat and trading account at SBI, earlier. You can read that article here. Anyways, let me give a quick summary of the account opening process with SBI.

Opening an SBI Demat and Trading Account is super simple and hassle-free. It can be done either online or offline. SBI offers a 3-in-1 account i.e. Saving + Demat + Trading account. If you already have got a saving account with SBI, then you just need to open a demat and trading account. The whole procedure to open your trading and demat account takes around 5-7 days if you open offline by visiting its office or calling a customer care executive.

For opening your account, first, you need to call on the number provided on the SBI’s contact page. Here is a link to the page. After calling the support care number, the customer care will ask for your details and a suitable time to meet you and bring the account opening form for getting signed.

In addition, the support executives will themselves come to collect the required documents to open the account. Here is the list of the documents required for opening the demat and trading account: PAN CARD, Aadhar Card (for address proof) & Passport-size photos. If you already have a bank account with SBI, you need to submit bank proof like canceled cheque or bank statement.

How to buy a Stock using SBI demat account?

Now that you’ve got a basic understanding of SBIcap securities, let’s discuss the main topic of this post i.e. how to buy a stock using SBI demat account. To trade in stocks using SBI demat account, follow the following steps.

Step 1: Go to SBI Smart website

Search ‘SBI Smart’ on Google or directly go to the SBI Smart website using this link. On the home page, click on login and select ‘Trade login’ in the drop-down menu. Here is the snapshot of the steps shown:

Step 2: Enter your login details.

On the SBI smart page, you will need your ‘Client Code’. ‘Password’ and ‘PAN Card’ to login. You will get these details via email, once your account is opened. If you are first time user, then SBI will ask you for a one time password with ‘Client code’. You will need to change to a new password after entering.

Step 3: Go to Order Entry

After you logged in, you can notice the different menu on the top like Dashboard, Trade, Market, Tools, Research, Customer Service’. Click on ‘Trade’. This will open the ‘Order Entry Page’.

Step 4: Transfer funds to your demat account.

The next step is to transfer funds to your demat account. For transferring funds, scroll down on the ‘Trade’ Page. You will find the ‘LIMITS’ option after scrolling down on the same page. Here, click on ‘MANAGE’. A snapshot of the page is shown below

Step 5: Fund Lien

After clicking on ‘Manage’, the ‘FUND LIEN’ Page will open. Now, click on the ‘FUND LIEN’ option on the right to as shown below.

Please note that there is also an option of ‘FUND UNLIEN’. This is used in the case when you transferred extra amount than required to your demat account or when you couldn’t buy the stock. In these cases, you can transfer funds from the ‘Demat’ account to your ‘Saving’ Account using ‘FUND UNLIEN’.

After clicking on the ‘FUND LIEN’, it will redirect you to the payment option. Enter the amount for which you want to buy stocks. For example, if you want to buy stocks using Rs 10,000; enter ‘10000’ in ‘Amount in Figure’ and click on ‘LIEN’. Here is the snapshot of the page:

Next. it will redirect you to the NET Banking page. Enter your login credentials (Username and password) and then complete the payment.

Step 6: Check the Lien Amount

After completing Step 5, you have transferred the funds to your demat account. You can check the transferred fund by going to ‘LIMITS’ on ‘TRADE’ page and viewing the ‘Net Lien Amount’. This will be equal to the transferred amount.

Step 7: Place Trade Order

Next step in to buy the stock. Go to the ‘TRADE’ option on the top menu and this will again open the ‘ORDER ENTRY’ page. It will look like this:

Next, follow the below-mentioned steps to buy the stock:

1. Select Equity (By default it should be equity. However, if it not, then select ‘Equity’).

2. Then select the preferred ‘Stock exchange’ beside ‘EQUITY’ Option. There will be the options of NSE (National Stock Exchange) or BSE (Bombay stock exchange). Select either NSE or BSE. It doesn’t make much difference which stock exchange you choose. Both are almost similar.

3. Besides the stock exchange, enter the name of the stock you want to buy and click on ‘GO’.

For example, if you want to buy NHPC (National hydroelectric power corporation), then enter NHPC in the blank provided.

4. After clicking on ‘GO’, the ‘market price’ of the entered stock will be shown along with the ‘bid’ and ‘ask’ price. Notice the market price carefully and decide whether you want to buy that stock or not.

5. The next step is to choose the ‘Order type’. There are two types of order types- ‘Market’ or ‘Limit’.

The ‘Market’ order type will buy the stock at the current market price. For example, if the current price of NHPC stock is Rs 30.20 and you want to buy this stock at that market price, you should select the ‘Market’ option. Further, please note that the market price fluctuates too fast and it might change till the time you click on ‘BUY’. Therefore, decide quickly if you want to buy on the ‘Market Price’ or not.

The second option is ‘LIMIT’ option. Here, you can select the amount at which you want to buy the stock. For example, if you want to buy the NHPC stock at Rs 29, then you can place the order type as ‘LIMIT’ and enter the price of Rs 29.

Further, please note that its easier to buy stocks at ‘Market’ price as there are many sellers at the market price at that moment of time. However, the sellers might not agree to sell their stocks at the ‘LIMIT’ price you are asking. In this case, you might not be able to buy the stocks. When placing a ‘LIMIT’ order type, place the limit amount logically by following the trends.

6. After selecting the order type, enter the ‘Quantity’ (QTY) of the stock you want to buy. For example, if you want to buy 10 stocks of NHPC, then enter 10 in the QTY option.

7. Finally, click on ‘BUY’ after carefully checking the details

Step 8: Confirm your Trade

After clicking on ‘BUY’, a confirmation page will appear. Click on ‘Confirm’.

After confirming the order, you have successfully placed your order. You can verify this by going to ‘ORDER BOOK’ present on the same page. Scroll down to the ‘TRADE’ page, and you will find the ‘Order book’. Once the order is successfully completed, you can check the stocks bought at the ‘TRADE BOOK’ option, present on the same ‘TRADE’ page.

Congratulations. You have finally bought the stocks using SBI demat account!!!

Also read: Different Charges on Share Trading Explained- Brokerage, STT & More

Summary

SBIcap securities offer one of the most popular demat and trading accounts with full-broker service to their clients. In this article, we discussed on how to trade in stocks using SBI smart. Besides, here is a short video of the order entry which can help you further to understand placing order.

(Source: Demos Sbismart)

That’s all for this post. I hope this article on how to buy a Stock using SBI demat account is useful to you. If you have any doubts related to trading in SBI demat account, feel free to comment below. I’ll be happy to help. Happy investing & trading!

Tags: how to buy a Stock using SBI demat account, how to buy and sell stocks using sbi, how to buy stocks using sbi, how to buy a Stock using SBI demat account and trading account, trading how to buy a Stock using SBI demat account

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

February 4, 2020 Kritesh Abhishek Investment Basics, Online Brokers 30 comments

sbi smart- demat and trading account in SBI

How to Open a Demat and Trading Account in SBI?

A quick guide to open a demat and trading account in SBI (SBI Cap / SBI Smart): Last few months, I received a number of emails asking how to start trading using State Bank of India (SBI) account. Therefore, in this post, I am going to explain the complete procedure required to open your demat and trading account at SBI in a simple & easy way.

First of all, I would like to mention that you do not need to open a new SBI saving account if you already have an existing one. You can easily link your existing SBI saving account with the demat and trading account. However, if you do not have an SBI saving account, you can also open a 3-in-1 account i.e. a Saving + Demat + Trading account. All three accounts will be linked here.

Documents Required

The photocopy of the following documents are required to open your demat and trading account at SBI:

PAN CARD
Aadhar Card (for address proof)
One passport size photo
Existing SBI saving account passbook (optional)

If you remember your SBI account number and its IFSC code, then the SBI saving account passbook photocopy is not required. You just have to fill your savings account details in the account opening form. However, it’s good to keep the photocopy, just in case.

Charges in SBI Demat & Trading Account

Here are the different charges applicable to the demat and trading account in SBI. This is available on SBI smart website in the ‘Charge’ section under ‘Quick access’ – https://www.sbismart.com/customer-service

Account opening Charges for SBI Demat & Trading

There are different plans which you can opt for while opening demat & trading accounts at SBI. However, most beginners are inclined towards the basic plan.

The basic charges for opening the demat and trading account in SBI is Rs 850 plus GST charges. The GST charged on this is 18% on the account opening charge i.e. 18% of Rs 850 = Rs 153. Therefore, the total amount for opening the account is Rs 850 + Rs 153 = Rs 1,003.

Moreover, this amount will be deducted directly from your SBI saving account with which you will be linking your demat and trading account. Therefore, there’s no need to pay it upfront.

Quick Note: Once your demat account is opened with SBI, you also have to pay an annual maintenance charges (AMC) of ₹500 per year to the bank.

— Ongoing Cashback plan

Nevertheless, in the basic plan, SBI is also giving a cashback up to Rs 650 on the brokerage amount if you invest/trade in the first 6 months after opening your demat and trading accounts.

For example, let’s say you bought stocks of ITC worth Rs 50,000 within 6 months after opening the account. The brokerage charge for such investment is 0.5% on your investment amount (if you are investing in ‘delivery’ i.e. holding the stocks for more than 1 day).

Here, brokerage charge will be 0.5% of Rs 50,000 = Rs 250. SBI will cashback this Rs 250 in your savings account.

As the total cashback is up to Rs 650, therefore we can say that the effective account opening charge is (Rs 1,003 – Rs 650) i.e. around Rs 350, including GST Charges.

Also read: Different Charges on Share Trading Explained- Brokerage, STT & More

In addition, there are few other account opening plans also available which you can discuss with your SBI local relationship manager. Different plans have different cash backs options, annual maintenance charge rates, etc.

How to open a demat and trading account in SBI?

SBI Smart Website: https://www.sbismart.com

There are 3 ways in which you can open a demat and trading account in SBI as mentioned below:

Visit the local SBI branch and open the accounts there.
Fill the online application form available at SBI website.
Contact the customer care and they will help to open your demat & trading account.

— Method 1: Visting SBI Branch

The first way is quite effective, although a little tiresome if the local SBI branch is far from your home. However, if you are able to visit the branch, then you can easily complete all the documentation work within a day. Further, you can get all your doubts cleared regarding brokerage charges, Annual maintenance charge (AMC) etc from the representatives present at the bank.

— Method 2: Online Process to Open SBI demat account

The second way is good for the young generations. They can easily fill the documents and upload it online. If you want to open your demat and trading account using the SBI website, here is the link: https://www.sbismart.com/customer-service

— Method 3*: Requesting SBI Relationship manager to visit home

The third way is the best and easiest. You just have to follow few simple steps to get your demat and trading account opened. Here are they:

Visit the Contact us page on SBI Smart website: https://www.sbismart.com/contact-us
Fill the contact form or call the Toll free number and give your details. They will ask your name, city, pin code, and phone number.
The local SBI Relationship manager from your city will call you within 2 working days and walk you through the process.

NOTE: You can fill be contact form by navigating on the ‘CUSTOMER SERVICE’ tab and clicking on ‘OPEN AN ACCOUNT’ option present on the right side of the screen.

Otherwise, you can call the SBI customer executive at 1800-209-9345 and tell your details.

Call from Local Relationship Manager

When your local relationship manager from your city will call, you can also request him to meet you at your address with the account opening form. Generally, they agree to visit your desired location to get the account opening form signed and collect the documents (Photocopy of PAN Card, Aadhar card & Passport size photo).

Once you have submitted the account opening form, your account will be activated within 15 days. You will get a mail from SBI smart with your username & password along with instructions for how to start investing/trading in SBI smart.

After receiving your login credentials, you can start trading by visiting the SBI Smart website (https://www.sbismart.com) and selecting ‘Trade Login’ present in the drop-down menu on ‘login’. Enter the credentials there and start trading.

Also read: How to buy a Stock using SBI demat account?

Also read: 8 Best Discount Brokers in India – Stockbrokers List 2020

Closing Thoughts

SBI demat and trading account offered by SBI Cap is a trusted brand and Subsidiary of State Bank of India, the country’s largest bank of India. As most Indian’s have a saving account in SBI, they might prefer to open a demat and trading account in SBI. Moreover, the account opening process involved with the SBI cap is similar to any other broker that you choose to open your account. You have to fill your application form (either online or offline) and submit the docs (Pan card, Aadhar Card & bank details) to them.

That’s all. Isn’t it simple? Now go and get your SBI demat and trading account opened. I hope this post on how to open a demat and trading account in SBI is useful to the readers. If you have any further doubts, please comment below. I will be happy to help you out. Happy Investing!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

January 12, 2020 Kritesh Abhishek Investment Basics, Online Brokers 21 comments

TRADE SMART ONLINE DEMAT REVIEW discount broker

Trade Smart Online Review – Discount Demat Trading Account

Trade smart online is a Mumbai, India based discount broker good for traders and investors looking for low brokerages, high margins, and a fast trading platform.

Unlike most discount brokers, Trade smart online is not a recent setup. It is a part +25 years old VNS Finance & Capital Limited, which is a traditional broker in India. Trade smart online offers brokerage services in stock, futures & options, commodity, and currency trading segments.

This discount broker offers a flat brokerage of Rs 15 per trade irrespective of the trading volume in its ‘Value’ trading plan. Further, it also proposes a ‘Power’ trading plan with a brokerage of 0.007% on the transaction, which is suitable for the small volume traders. Here, you may pay brokerage as low as 1 paisa per trade. Overall, by opting for this plan, you can save a lot of brokerage charges if you’re a high-volume trader.

Special Offer:

Right now, Trade Smart Online has partnered with us and hence, Trade Brains’ readers can open their trading and demat account with TSO for FREE (100% waiver on the account opening charges).

You can open your FREE Trade Smart Online account by clicking this link.

Table of Content

Trade Smart Online Brokerage Charges
Trade Smart Online Brokerage comparison
Account Opening charges and AMC for Trade Smart Online
Trade Smart Online Trading Platforms
Trade Smart Online Margin/Leverage/Exposure
Pros and Cons of Trade Smart Online
How to open an account with Trade Smart Online?
Closing Thoughts

Trade Smart Online Review – Discount Demat Trading Account

Trade Smart Online Brokerage Charges

Trade Smart Online offers two brokerage options for the clients 1) Value trading plan and 2) Power Trading plan. You can choose the plan whichever suits you the best depending on your trading objectives:

	Value Trading Plan	Power Trading Plan
Brokerage	0.007% on the transaction	Flat Rs 15 Per Order
Suitable for	Small Volume Traders	Large Volume Traders

Note: Call & trade service is also available at Rs. 20 per executed trade plus the brokerage charges.

Comparison of brokerage charges:

Assume that you do 15 trades per month with a minimum monthly trading transaction of Rs 10,00,000. Here, your total number of monthly trades will be 30, considering both buying and selling sides.

Let us compare the Trade smart online brokerage with ICICI direct, a full-service broker and Zerodha, the discount broker.

Comparison with ICICI Direct, a full-service broker:

ICICI Direct charges 0.275% on each side of transaction i.e. while buying and selling for Intraday trades. There, the total brokerage charge for both side of the transaction will be 0.275% *2 = 0.55%.

Your total annual brokerage while trading with ICICI direct will be equal to:

0.55% * 10,00,000 * 12 months = Rs 66,000

Comparison with Zerodha, a discount broker:

Zerodha offers a flat charge of Rs 20 per transaction on intraday trades. For a total of 30 trades per month, your annual brokerage while trading with Zerodha will be:

30 trades * Rs 20 per trade * 12 months = Rs 7,200

Now finally, let’s calculate your annual brokerage with Trade Smart Online trading platform.

For the power trading plan with Trade smart online, you have to pay a flat charge of Rs 15 per trade as brokerage. Hence, your total annual brokerage charges while trading with Trade Smart Online will be:

30 Trades * Rs 15 per trade * 12 months = Rs 5,400

Clearly, you can notice that you can save a lot of brokerages while trading with Trade Smart online compared to a full-service broker like ICICI direct or even compared to discount brokers like Zerodha.

Note: You can further compare Trade Smart Online with other brokers on this page.

Trade Smart Online Account Opening Charges & Maintenance Charges

Here are the account opening charges and annual maintenance charges (AMC) for the Trade Smart Online customers:

TSO Demat and Trading Opening Charge – Rs. 400
TSO Annual Maintenance Charges – First year FREE, Rs. 300 +GST (Second Years Onwards)

Can you get a Waiver on TSO Account Opening Charges?

Right now, Trade Smart Online is offering a flat 100% off on the Account Opening Charges for the Trade Brains’ readers. You can open your FREE Trade Smart Online account by clicking this link.

Trade Smart Online Margin / TSO Leverage/ Exposure

TSO offers an intraday exposure of up to 30x on Equities, 7x on F & O, 3x on Currency and 6x on Commodities. Here is the Segment Wise Intraday exposure offered by Trade Smart Online:

Particulars	Intraday			Overnight (CNC)
Particulars	MIS	CO	BO	Overnight (CNC)
Equity/Index futures	3X	7X	7X	1X
Equity/Index Options writing (selling)	3X	7X	7X	1X
Equity/Index Options buying	1X	1X	1X	1X
Currency futures	3X	3X*	3X*	1X
Currency Options writing	3x	NA	NA	1X
Currency Options buying	1X	NA	NA	1X
MCX Futures	2X	6X	6X	1X
MCX Options	NA	NA	NA	1X**
NSE Cash	upto 10X	30X	30X	1X
BSE Cash	upto 10X	NA	NA	1X

Pros and Cons of Trade Smart Online Broker:

Advantages of Trade Smart Online:

Flexible brokerage plans. Traders can choose the brokerage plan depending on their trading preference.
Brokerage calculator for forecasting and planning brokerages (Check here).
High margin for trading.
Excellent customer service from support desk through phone, live chat, and email ticketing.
Margin against available shares in demat account
No Minimum Commitment
100% Waiver on the Account Opening Charges

Cons of Trade Smart Online broker:

No 3-in-1 account available
Call and trade at Rs 20 per executed trade (plus brokerage)

Trade Smart Online Trading Platforms

— SINE Trading App:

Available on both Android and iPhone, SINE is the trading app offered by Trade Smart Online which is used to trade in Cash, Futures, and Options, Currency Derivatives and Commodities on all the major exchanges in India (NSE, BSE, MCX).

Using the app, you can easily monitor your positions, holdings, orders, trading balance & more. A few of the other best features offered by Sine app are Market scanners, Strategies, Market Analytics, Market Watch, Index Watch, and advanced trading tools including technical indicators like MACD, Moving Avg, RSI, Bollinger Bands, Parabolic SAR, etc.

In addition, SINE app also provides after-market order trades, corporate action details, options calculator and more.

— NEST Trader:

NEST Trader offers professional online trading tools and charts for multiple segment trading across several exchanges including NSE, BSE & MCX. It allows a trader to place trades in different exchanges using a single interface, view market data for scrips and provides useful add-on tools to receive alerts, send internal messages, etc. NEST Trader also offers Instant Fund transfer through 26 banks to the traders.

— SINE WEB:

Sine web is a browser-based trading application with all the features of the SINE app. Supported by all standard web browsers, you can quickly log-in to the SINE web portal and enjoy all the features of online share trading without the need of downloading any software.

How to Open Brokerage Account with Trade Smart Online?

The account opening process of Trade smart online is very fast, paperless and hassle-free. You can open your TSO demat and trading account online within an hour if you’ve soft copies of all the required documents available.

Here are the documents required to open your account with Trade Smart Online:

PAN Card
Aadhaar Card
Canceled cheque/Bank statement
Passport size photos

You can open your Trade Smart Online account by clicking this link.

Note: If you are choosing an offline method to apply, you can download the forms here. If all your documents are as per the KYC norms, it might take up to 48 hours to generate your trading login id and password and send to you– after receiving your account opening form.

Further, you need to sign and send PoA (Power of Attorney) letter by courier to the TSO office later once your account is active. This process is similar in any other broker that you choose to open your brokerage account.

Closing Thoughts:

Trade Smart Online offers a low brokerage plan with high margins. What’s the best about TSO is the flexibility in choosing your brokerage plan and fast account opening process. If you are looking for an easy-to-setup and cheap brokerage trading platform, you should go with Trade Smart Online.

August 22, 2019 Team Trade Brains Online Brokers No comments yet

How to Open Demat and Trading Account at 5Paisa?

How to Open Demat and Trading Account at 5Paisa? Last week, I received four different emails from Trade Brains’ subscribers asking about 5Paisa Review and how to open a demat and trading account at 5Paisa. Therefore, in this post, I’ve decided to write a synopsis of 5Paisa stockbroker and walk you through the complete step-by-step process to open a demat and trading account at 5 Paisa.

Quick link to open 5Paisa demat and trading account!

About 5Paisa

5Paisa is a discount broker that provides you the platform to trade in stocks, futures and options at the lowest cost of Rs 20 flat per trade (even if you trade for Rs 10 Crore). Currently, it is the second-biggest discount broker in India, after Zerodha.

It is headquartered in Mumbai and is a part of India Infoline (IIFL), a leading non-banking financial institution in India with experience of over two decades (initially incorporated in 1995). 5paisa was re-launched with new brokerage model for online retail broking services in late 2016. Later, it got de-merged from IIFL so that it can be listed on the stock exchanges. 5Paisa Capital started trading on NSE/BSE in November 2017, making it the first such listed financial digital marketplace.

5 Paise Capital provides a platform for all financial products including equities, derivatives, mutual funds, AIFs, bonds & debentures, insurance and personal loans. The account opening process for 5Paisa is totally paperless based on Aadhaar. It provides the trading facility in mobile, browser and desktop platforms.

Services offered by 5Paisa:

5Paisa offers multiple services in online trading, mutual funds investment, online insurance, and Robo advisory.

— Online Trading (Rs 20 Flat)

Paperless & Instant A/C opening with Aadhar
Zero Brokerage. Flat Rs 20 only per trade
Trade in Equity, F&O and currency segment
Trade from Desktop, Mobile & Web Platforms

— Mutual Funds (Instant & Free)

Paperless process and Zero transaction fee
Invest in easy monthly investments

— Insurance (compare & buy)

Buy online & save big in Premium
Term & health insurance

— Robo Advisory (Smart Investment Plan)

A smart and fully automated advisor

5Paisa Mobile App

5 Paisa is the fastest and first discount broker to cross over 1 million mobile downloads. It provides you the facility to manage all your investments- Equity, Currency, Mutual funds, IPO, Insurance, NFO, FNO, NCD, etc -with just one power-packed app.

Account Opening Fees & Annual maintenance charges (AMC)

Trading Account Opening Charges (One Time): Rs. 650 (Currently Waived)
Account Annual Maintenance Charges (AMC): Rs. 400 per year

Trading Brokerage Charges

Stock Intra-day Trades: Rs. 20 per executed order
Stock Cash Delivery Based Trades: Rs. 20 per executed order
Stock F&O Trades: Rs. 20 per executed order
Currency F&O Trades: Rs. 20 per executed order

Advantages of Opening account at 5Paisa

Paperless account opening using Aadhar Card within 5 minutes (sign application using e-Sign)
Flat brokerage of Rs 20 for Equity Cash, F&O, and Currency derivative.
Online Trading (Stocks, Futures & Options, and Currencies at NSE and BSE), Mutual funds and Insurance services under one roof.
Free fundamental, technical and derivative research & financial advice to customers.
Advanced and FREE technology-driven trading platforms across the web, desktop and app-based.

Disadvantages of 5Paisa

5Paisa doesn’t offer a 3-in-1 account (only demat and trading account available). You have to link your existing saving account with the 5Paisa account.
They don’t offer commodity trading.

How to open a demat and trading account at 5paisa?

You can open a 2-in-1 demat and trading account at 5Paisa completely online (no paper documents required). The procedure is very fast if you have all the documents ready. As a matter of fact, you can complete the account opening process within 5 minutes.

For normal intraday and delivery trading, the only documents that you’ll require are the online copy of PAN Card, Aadhar Card and Cancelled cheque. Further, if you are also planning to trade in derivatives, then you’ll be required to submit your income proof.

The account opening process is based on Aadhar Card. Therefore, your mobile number should be mapped with your Aadhar card as you’ll receive an OTP to verify your account. Here’s the process to open your online demat and trading account with 5Paisa—

Visit 5Paisa website using this link.
Enter your personal details (Name, email, password etc).
Select All In One (Trading + Investment Account) and click on ‘Open Trading + MF Account)
Follow the simple six-step process to enter the details of your PAN CARD, Aadhar Card and bank details and complete the payment.
After completing the online application, the online trading accounts get activated within 2-3 hours and you can start trading.

Quick Note: The Offline account opening process is also available where you can download the application form, print it, fill it up and send it to the 5paisa Mumbai office.

Overall, you should try the online account opening process, as it is really fast and straightforward.

Summary

5Paisa is the second biggest discount broker in India that provides you the platform to trade in stocks at the lowest cost of Rs 20 flat per trade. It provides you the facility to manage all your investments- Equity, Currency, Mutual funds, IPO, Insurance, NFO, FNO, NCD, etc -with just one power-packed app. The account opening process of 5Paisa is Paperless & Instant with Aadhar.

If you need any help to open your demat and trading account with 5Paisa, feel free to comment below. I’ll be happy to help. Happy Investing!

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

July 23, 2018 Kritesh Abhishek Online Brokers No comments yet

How to choose a stockbroker? – For beginners

Selecting your stockbroker is the one the biggest step that you take while entering the world of investing. You cannot start investing/trading until you have a broker (unless you are using someone else’s account).

When I opened my first brokerage account, I had no one to guide me. I belong to a family where no one invests in stocks. My father has few holdings in mutual funds, FDs and LICs, however, he never invested directly in the stock market.

Therefore, I have to go through a number of websites to educate myself about where to start and which stockbroker to chose.

That’s why I am writing this post for the beginners so that they can say a lot of time. I won’t be recommending any stockbroker in specific here, but I will teach you how to choose a stockbroker. So, let’s get started.

First of all, I would like to mention that your first broker won’t necessarily be your broker for life. You can definitely switch to another broker anytime you like. Personally, I have also switched brokers.

However, it’s good to start with a decent broker and choosing a bad stockbroker may ruin your first experience in investing/trading. In addition, it may also cost you some bucks as switching cost if you moved to another broker.

How to choose a stockbroker?

There are a number of factors that you need to check before choosing your stockbroker. Here are a few of them:

Research:

Conduct your own research. Listen to the advice of the experienced investors/traders but do not follow them blindly. You can carry out your own research by visiting various stockbroker’s website. Get a general idea about the stockbroker, account opening charges, facilities offered etc.

Background & reputation of the broker:

Check the background of the stockbroker and their reputations. You can inspect the reviews, complaints and have a survey of the personal experience by the existing users. If you are going to use the mobile platform, check the mobile app ratings on the app store.

Image source: Google play store

Brokerage and other charges:

Stockbrokers are the registered members of the stock exchange and they can directly buy & sell shares in the share market for their clients. They charge some commission for offering this facility known as brokerage charge.

Now, there are two types of stock brokers in India: A) Full-service broker & B) Discount broker.

Full-service broker provides advisory service along with the trading platform. These brokers charge commissions on every trade their clients execute as a percentage of each trade executed.

Discount brokers only provide the trading facility. They offer low brokerage and charges a flat fee per transaction.

Read more here: Full service brokers vs discount brokers: Which one to choose?

Choose a suitable broker according to your preference. If you want stock research advisory, go to a full-service broker. If you just want a trading facility and do not want to pay an extra commission, go with a discount broker.

You can use this site for brokerage comparision and calculation.

Customer Services:

If you are new to investing/trading, you will require a lot of customer service, unless you have a guru or advisor. Check the customer service provided by the stockbroker. An easy way is to try calling their customer care helpline number. If it takes years for the customer executive to pick up the phone, then avoid that stockbroker. Further, if you want one-to-one customer service, then check the website of the stockbroker if they provide personal services.

Trading platform:

This is one of the most important factors to examine. Inspect whether the trading platform offered is friendly and easy to use. Check the demo videos of the trading platform on youtube.

Advisory & research facilities:

If you are not planning to invest in your own and need advisory, then check for the facility offered. The reliability of the advisory is a must to check. The stockbroker should have a good reputation in advisory and research works.

The range of facilities offered:

If you are looking for diversified investment and planning to also invest in other options like mutual funds, bonds, currencies, FSs etc, then check if these range of facilities are available with your broker or not.

Hidden Charges:

There should be no hidden charges and all the charges incurred while transactions should be specifically mentioned. Asked for any hidden charges with your customer care executive before selecting the stockbroker. Transparency is the key to any service.

Fund Transfer:

Easy linking facility with your saving account should be available. Ask for the fund transfer process in your stockbroker. Online money transfer and withdrawal should be fast and easy.

Tools of education:

Many stockbrokers provide education facility. For example, Zerodha educates its clients via ‘Varsity’ and its blog for free. If you are in the learning phase, ask your customer support executive if any tools of education are available with your stockbroker. This is not a ‘must have’ for your stockbroker, however it can be an add-on.

Related Post: How to Open a Demat and Trading Account at Zerodha?

Most of the important points to are already covered above. However, there are few other points also that a beginner should know on ‘how to choose a stockbroker’. They are listed below:

If you are new to Indian stock market and want to learn the basics, here is an must-read book by Parag Parikh that I personally recommend you to read: Value Investing and behaviorial finance.

Few other points to know:

Discounts and low-commission are not always good:

If you are new to the market and you will need a lot of help in the service while getting started. Although, its good to pay less, however, if you are getting premium facilities at a commission, it’s better for the beginners. Once you are experienced, you can carry out your investing/trading on your own.

Availability is important:

There are very few branches of discount brokers, whereas there are tons of branches of full-service brokers. If you can find a branch in your local, where you can easily go and personally meet the customer care executive to clear all your doubts, then its good to go.

Check out our upcoming course on stock market here.

Do not avoid customer services:

Investing/trading using online platforms are easy to use and have a number of resources available online. However, there may be a few times when you will require technical support. It’s good to have someone to look for in such cases. Do not avoid customer services. Look for the reviews before opting for any stockbroker and if the customer service is poor, then search another broker.

Look for extras/add-ons:

Many stockbrokers provide extras like no ‘annual maintenance charge’ for the first year, free brokerage amount of Rs 500 etc. Check the add-on and added benefits. It’s always good to have some bonus.

Ready to start your journey to become a succesful stock market investor? If yes, then here’s an amazing course for newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS.

That’s all. These are the important points before selecting stockbrokers. I hope this post on ‘How to choose a stockbroker?’ is useful to the readers. If you have any doubts, feel free to comment below. I will be happy to help you out.

Kritesh Abhishek

www.linkedin.com/in/kriteshrules/

November 12, 2017 Kritesh Abhishek Investment Basics, Online Brokers 16 comments

Different Charges on Share Trading Explained- Brokerage, STT & More

1. Intraday Trading and Delivery

2. Full-Service Brokers and Discount Brokers:

Different Charges on Share Trading

– Security Transaction Tax (STT)

– Stamp Duty

– Transaction Charges

– SEBI Turnover Charges

– Depository Participant (DP) Charges

– Goods & Service Taxes (GST)

– Capital Gain Taxes

Example of Different Charges on Share Trading

Zerodha Brokerage Calculator

Zerodha Success Story: Journey to Biggest Stockbroking in India!

The founding of Zerodha: How did it start?

The Secret Formula of Zerodha’s Success

Innovation and New Additions

Let us Talk about Challenges

Closing Thoughts

15 Biggest Stockbrokers in India With Highest Active Clients

15 Biggest Stockbrokers in India with Highest Active Clients

Bonus: Additional Top Stockbrokers

Zerodha vs Angel Broking: Stockbroker Comparison

Zerodha Introduction

Angel Broking Introduction

Zerodha vs Angel Broking Comparision

Closing Thoughts

Zerodha Review 2020 – Is Free Investing Legit? [Pros and Cons]

Zerodha Review –Brokerage, Charges, Trading Platforms & More

1. Introduction

2. Zerodha Brokerage Charges

– Free equity delivery

– ₹20 intraday equity and F&O trades

3. Zerodha Account Opening Charges & AMC

4. Zerodha Products & Features

— Kite 3.0

— Kite mobile

— Coin

Other Partner Products

5. Pros and cons of Zerodha Discount broker

Pros of Opening Account with Zerodha

Cons of Opening Account with Zerodha

6. Is Zerodha a Reliable Stockbroker? And is Free investing legit?

7. My experience of using Zerodha

8. How to open your trading & demat account with Zerodha?

9. Closing Thoughts

Where to open your Demat & Trading account?

Where to open your Demat & Trading account?

1) Difference between demat and trading account?

2) Do you need a stockbroker to trade in stocks?

3) What is a stockbroker?

4) What are the types of stockbrokers in India?

— Full-service brokers

— Discount brokers

5) Brokerage comparison while using full-service vs discount brokers

6) What factors to check while selecting your stockbroker?

7) Where should you open your demat and trading account?

8) Which stockbroker do I use?

Other Frequently Asked Questions (FAQs) regarding trading and demat accounts.

1) How to open your demat and trading account?

2) Can I open multiple accounts?

3) Can I switch my previously purchased stocks from one demat account to another?

4) How to close your demat account?

Closing Thoughts

Angel Broking vs 5Paisa – Which one is better?

Angel Broking Introduction

5 Paisa Introduction

Angel Broking vs 5Paisa – Broker Comparision

Closing Thoughts

How to Open Demat Account at Angel Broking?

Angel Broking Introduction

Why should you open a demat account at Angel Broking?

Documents required to open a demat account at Angel Broking

Account opening charges at Angel Broking

Short Answer to Open Your Angel Broking Demat Account

Detailed Step-by-step procedure to open your Angel Broking demat account online

What Next After Opening Your Angel Broking Demat Account?

Closing Thoughts

How to trade in ICICI Direct? Buy/Sell Stocks

Quick Video: How to trade in ICICI Direct?