Online Brokers Archives

Where to open your Demat & Trading account?

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.

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.

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.

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.

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:

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.

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.

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.

Which stockbroker do I use?

I use Zerodha discount broker for making all my traders.

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.

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.

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

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

How to open your demat and trading account?

Opening your trading and demat account is completely online, paperless and hassle-free. If you already have the soft copies of your documents (PAN card, aadhar card and saving account passbook/check) on your mobile/laptop, you can open these accounts within an hour. Simply visit the stockbroker website and apply for an account.

Can I open multiple accounts?

Yes, you can open multiple accounts.

In fact, you can open as many trading accounts as you want with multiple stock brokers. If you wish, you can have one account with a discount broker and another with a full-service broker.

However, keep in mind that you have to pay annual maintenance charges (AMC) for all your active accounts. Generally, this AMC can be between Rs 300–700 per year (lower for discount brokers). Therefore, if you three accounts, you might have to pay a maintenance charge between Rs 900–2100 per year, even if you are not actively using all your accounts.

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

Yes, you can switch your stocks if you are planning to migrate from one demat account to another.

Here, you have two options. Either, you can fill the DIS (Delivery instruction sheet) with information about the new demat account number and submit it to your previous stockbroker. Once filed correctly, they’ll transfer the shares.

Else, you can do it online using the EASIEST facility available on the CDSL website. CDSL is the central securities depository based in Mumbai. EASIEST allows you to transfer shares from one demat to another demat account with simple clicks once you have created your account and linked your stock brokers. Here’s the link to the portal and instructions regarding the same.

How to close your demat account?

Probably the least asked questions. However, I thought to mention this here to complete the article.

To close your demat account, you can fill the Account Closure Form available on your stockbroker’s website and submit it. Generally, it takes between 7–10 days to close your account.

Note: Before closing your account make sure that you don’t have any shares or a negative balance in your account. You can have a negative balance if your account was inactive for the last few years and you didn’t pay the AMC. Further, if you have any stocks in the account, either sell them or transfer it to your other active account before closing this one.

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

Hi, I am Kritesh, 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

https://www.linkedin.com/in/kriteshrules/

October 24, 2019 Kritesh Abhishek Online Brokers 7 comments

How to Open a Demat and Trading Account at Zerodha?

How to open a demat and trading account at Zerodha? (Updated: Oct 2019)

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 0.01% 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 0.01% 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 300
Commodity Account: Rs 200

If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 300+Rs 200 = Rs 500. However, if you want to trade just in equity (stocks), then you need to pay the charge of Rs 300 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.

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:

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 front 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.

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.

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 grocery 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 300 and for commodity, the charge is Rs 200. 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 commodity account, if you’re not planning to trade in it and save Rs 200.

After payment, you will see 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.

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 of 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?

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

https://www.linkedin.com/in/kriteshrules/

October 15, 2019 Kritesh Abhishek Online Brokers 95 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

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

https://www.linkedin.com/in/kriteshrules/

September 30, 2019 Kritesh Abhishek Online Brokers No comments yet

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

Zerodha Review– Brokerage, Trading Platform & More (Updated Sept 2019)

Zerodha is the biggest discount broker in India and perfect for traders & investors looking for low brokerage, easy interface, and reliable trading platform.

Zerodha offers a zero brokerage for delivery equity & direct mutual fund investments. For all intraday, F&O, currency, and commodity trades across NSE, BSE, MCX, it offers a 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.

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. Here are the contents that we’ll cover in this post:

Table of Content

Introduction
Zerodha Brokerage Charges
Zerodha Account Opening Charges & AMC
Zerodha Products & Features
Pros and cons of Zerodha Discount broker
My experience of using Zerodha
How to open your trading & demat account with Zerodha?
Closing Thoughts

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 Start: Click here to open your account with Zerodha!

Zerodha Review –Brokerage, Trading Platform & More

1. Introduction

There are two types of stock brokers 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 0.01% (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 0.01%
Equity Futures	Lower of Rs. 20 per executed order or 0.01%
Equity Options	Lower of Rs. 20 per executed order or 0.01%
Currency F&O	Lower of Rs. 20 per executed order or 0.01%
Commodity	Lower of Rs. 20 per executed order or 0.01%

Quick note:

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

2. Apart from brokerages, there are also a few other charges that you have to pay on your transactions like transaction charge, STT, SEBI turnover charges, Stamp duty, GST, etc. 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: ₹300
Commodity Account:₹200

If you want to trade in both equity and commodity, then you need to pay an account opening charge of Rs 300+Rs 200 = Rs 500. Anyways, if you are just interested in trading in stocks i.e. equities, you can open demat and trading for equity account at Rs 300. 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:

Zero Brokerage Charges for Delivery
Flat Charge for Intraday (Rs 20 or 0.01% 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

Cons:

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. My experience of using Zerodha

It’s been around 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. I wished I had switched to discount broker earlier as it could have saved me a lot of ‘unnecessary’ brokerages and trading experience is almost similar. Although I still hold both the accounts, I rarely use ICICI direct account to buy stocks now, but rather use Zerodha for making my stock investments.

7. 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.

8. Closing Thoughts

In the past 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 which 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 query 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

https://www.linkedin.com/in/kriteshrules/

September 25, 2019 Kritesh Abhishek Online Brokers 9 comments

8 Best Discount Brokers in India – Stockbrokers List 2019

8 Best Discount Brokers in India – Stockbrokers List 2019

With the rise of Zerodha, the discount broker which was founded in 2010, 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.

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 10% of daily retail trading volumes across the Indian Stock Market. Its mobile app ‘KITE’ has got over +1,000,000 download 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 0.01% (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: ₹300

— Commodity Account:₹200

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

Cons of Zerodha:

3-in-1 account not available
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. 5Paisa

5Paisa is a part of IIFL (India Infoline) and offers 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: Rs 0

— Intraday Trading: Rs 10 per trade

5Paisa Demat And Trading account opening Charges:

— Account opening charges: Rs 650

— 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
Investment in stocks, mutual funds & insurance from the same account
Lower maintenance charges

Cons of 5Paisa:

No 3-in-1 account
Higher exchange transaction charges

Quick link to open your account with 5Paisa

3. 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

4. Trade Smart Online

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. 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. Use code “FREECOUPON” on the payment page to enjoy the offer.

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

5. 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

6. 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.

7. 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

8. Fyers

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 offers 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 400 (Demat AMC)

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
No commodity trading

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:

September 17, 2019 Team Trade Brains Online Brokers 1 comment

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.

About 5Paisa

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

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. (Also refer: www.5paisa.com)

Services offered by 5Paisa:

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

Online Trading (Rs 10 Flat)
- Paperless & Instant A/C opening with Aadhar
- Zero Brokerage. Flat Rs 10 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
Account Annual Maintenance Charges (AMC): Rs. 400 per year

Trading Brokerage Charges

Stock Intra-day Trades: Rs. 10 per executed order
Stock Cash Delivery Based Trades: Rs. 10 per executed order
Stock F&O Trades: Rs. 10 per executed order
Currency F&O Trades: Rs. 10 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 10 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.

If you need help in opening your stock brokerage account, feel free to check out this awesome website- Nifty Brokers.

Disadvantages of 5Paisa

5Paisa doesn’t offer 3-in-1 account (only demat and trading account available). You have to link your existing saving account with the 5Paisa account.
It doesn’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 5paisa Mumbai office.

Overall, if you try online account opening process, then it’s is really fast and straightforward.

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

July 23, 2018 Kritesh Abhishek Online Brokers No comments yet

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

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

Hi 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 5+ lakh clients. The different zerodha product codes will be simple to use once you understand it. So let’s get started.

Here is a screenshot of the KITE app. Please note the different zerodha product codes. 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. However, the other codes are the ones that we are going to discuss in this post.

Zerodha product codes:

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

Before we discuss the zerodha product codes, here are few terms that you need to know first.

What is a 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.

What is a limit order?

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.

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

What is a 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.

Zerodha product codes explanations:

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: It stands for Margin Intraday square off. MIS 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 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 market screen.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.

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 order. 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 a 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 case of part execution, the remaining quantity (which is not executed) will be canceled.

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

That’s all. I hope the post is useful to the new traders. If you have any questions regarding any zerodha product codes, please comment below. Will be glad to help.

Happy Investing!!

Tags: Zerodha product codes, What is CNC and MIS, SL and SL-M, CNC and MIS

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

November 25, 2017 Kritesh Abhishek Online Brokers 25 comments

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

https://www.linkedin.com/in/kriteshrules/

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

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

Hello Investors. Today we are going to discuss one of the hottest topic in the investing world- Full-service broker vs discount broker and which one to choose? However, before moving forward, let us first understand who is a stockbroker.

Who is a stockbroker?

A stockbroker is an individual/organization who is a registered member of the stock exchange and are given license to participate in the securities market in place of its clients. Stockbrokers can directly buy & sell stocks in the share market on behalf of their clients and charge a commission for this service.

Now, there are two types of stock brokers in India:

Full-service brokers (Traditional Broker)
Discount brokers (Budget brokers)

Let us understand each type of stockbrokers:

Full-Service Brokers (Traditional Brokers)

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

Few examples of full-time brokers are ICICIDirect, Kotak Security, HDFC Sec, Sharekhan, Motilal Oswal etc.

Discount Brokers (Budget Brokers)

Discount brokers just provide the trading facility for their clients. They do not offer advisory and suits for a ‘do-it-yourself’ type of clients. They offer low brokerage, high speed and a decent platform for trading in stocks, commodities and currency derivatives. A few examples of discount brokers are Zerodha, ProStocks, RKSV, Trade Smart Online, Achiievers, SAS online etc.

Full service brokers vs discount brokers:

Here are the key differences between full service brokers vs discount brokers based on different criteria:

	FULL SERVICE BROKERS	DISCOUNT BROKERS
Brokerage	They charge commission in percentage terms of each trade executed.	They offer a flat fee on each trade executed.
Brokerage rates	Typically between 0.3 to 0.7%	Generally Rs 20 per trade.
Primary Service	They provide trading platform along with advisory for investment.	They only provide a trading platform (no investment advisory provided).
Suitable for	Full service brokers suit those who want advisory for their investment.	The discount broker is suitable for those who research on their own or have a financial advisor.
Research Department	They have their own research departments for advisory.	No such department.
Network	They have a large number of branches in different cities.	They do not have many branches.
Customer service	Face to face customer service available.	Online services for customers.
Other Facilities	Besides stocks, commodities & currencies, other facilities offered are forex, mutual funds, IPOs, FDs, bonds, insurance, etc	Only stock, commodities & current trading available
Add on services	Research reports, recommendations, funding, extended margin etc	Focuses mainly on trading
3-in-1 Account (Saving+demat +trading)	Available	Not available
Examples/ Top Brokers	ICICI Direct, HDFC sec, Kotak securities, Sharekhan, Motilal Oswal, Angel Broking, Axis direct, Edelweiss, Aditya Birla money etc	Zerodha, Prostocks, RKSV, Trade smart online, Tradejini, SAS online etc.

Also read: Where to open your Demat & Trading account?

Which one should you choose?

The answer depends on your knowledge, preference and time. If you want stock advisory for your investment, then you should choose a full-time broker. On the other hand, if you want to do research on your own or you have a financial advisor, then you should choose a discount broker.

Further, you should also consider brokerage charges carefully before selecting your stockbroker.

I will highly recommend you to choose a discount broker (like Zerodha) as it will save you a lot of brokerage amount.

Initially, I started with ICICI direct (which is a full-service broker), but soon realized that it was too expensive compared to the discount brokers. Moreover, I wasn’t using the advisory facility by the ICICI direct. Hence, it didn’t make sense to pay extra brokerage charges even if I can get similar benefits on the cheaper stockbrokers.

I then shifted from ICICI direct to Zerodha.

Zerodha (discount broker) charges brokerage of 0.01% or Rs 20 (whichever is lower) per executed order. This is way cheaper compared than ICICI direct (full-service broker) which asked a brokerage of 0.5% on each transaction. If you buy stocks for Rs 50,000 in ICICI direct, then you have to pay a brokerage of Rs 250 (on the other hand, Zerodha will ask only Rs 20, a difference of Rs 230).

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

In addition, as this amount is charged on both sides of the transaction (buying & selling), hence you have to pay a total of Rs 500 for the complete transactions (way too expensive compared to a total brokerage of Rs 40 on both sides of transactions in Zerodha).

In short, if you are new to investing and want to open a trading account, I would recommend choosing discount brokers, so that you can save lots of brokerages.

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

However, in the end, it’s your knowledge, preference and time that matters the most while selecting a stockbroker. If you have enough knowledge and time for your stock research and prefer not to pay an extra commission, then you should go for a discount broker. On the contrary, if you do not mind paying extra commission for the advisory services to save your time, you can select a full-service broker.

If you are new to stock market and want to learn the basics from scratch, here is the best selling book that I highly recommend you to read: How to Avoid Loss and Earn Consistently in the Stock Market by Prasenjit Paul

That’s all for this post. I hope you have understood the difference between full service brokers vs discount brokers. Further, if you have any doubts, do comment below. I will be happy to help you out. Happy Investing.

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

November 10, 2017 Kritesh Abhishek Investment Basics, Online Brokers 11 comments

sbi smart- demat and trading account in SBI

How to Open a Demat and Trading Account in SBI?

How to open a demat and trading account in SBI? Recently, 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 the 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 saving account details in the account opening form. However, its good to keep the photocopy, just in case.

If you need help in opening your stock brokerage account, feel free to check out this awesome website- Nifty Brokers.

Charges in SBI Demat & Trading Account:

Here are the different charges applicable to 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 charge is 18% on the account opening charge.

18% of Rs 850 = Rs 153

Therefore, the total amount for opening the account is Rs 850 + Rs 153 = Rs 1,003.

Note: This amount will be deducted directly from your SBI saving account with which you will be linking your demat and trading account.

Also Read:

How to trade in ICICI Direct? Buy/Sell Stocks

How to Open a Demat and Trading Account at Zerodha?

How to Open Demat and Trading Account at 5Paisa?

Current Cashback plan:

Nevertheless, in the basic plan, SBI is also giving a cash back 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 cash back this Rs 250 in your savings account.

As the total cash back 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:

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:

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*:

The third way is 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 ‘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 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?

That’s all. Isn’t it simple?

Yes. 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.

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

August 29, 2017 Kritesh Abhishek Investment Basics, Online Brokers 20 comments

How to buy a Stock using SBI demat account?

How to buy a stock using SBI demat account? State bank of India is one of 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 number of demat and trading account holders in SBI are also high. However, many of such users do not know how to use their demat account yet or are in process to learn how to buy a stock using SBI demat account and use it for trading.

Therefore, in this post I am going to teach you step-by-step procedures about how to buy a stock using a SBI demat account. So, be with me for the next 10-15 minutes to expertise the skills of how to buy a stock using SBI demat account. Further, this post is divided into three sections- Pre-Research (Things to do before buying a stock), How to open a SBI demat and trading account and how to buy a stock using sbi demat account. I will advice the readers not to skip any section and read step-by-step to get the full understanding 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.

Pre-Research and Things to do before buying a stock.

Buying stocks are easy when you know what to buy. The common advice on the stock market is ‘Buy low and sell high’. But the problem is that no one explains how much is low and how much is high. Overall, the procedure to find an undervalued stock is not that easy.

However, just like playing the guitar, stock market investing is also an art which has been learned with practice and patience. Practice is required to expertise the subject. Patience is required to safeguard yourself from witnessing losses. There are over 5000 companies listed in Indian stock market. And among these, you need only 5-6 stocks in your portfolio. Never rush to buy a stock without doing the proper analysis. That’s why both practice & patience is equally required to become successful in the stock market.

The first step before buying a stock is to figure out how much you want to invest. Keep in mind that you should always invest the additional cash left over after meeting all the day-to-day requirements. In addition, do not invest if you require the money in near-future. For example, do not invest the money that you need to pay them for your kid’s next semester tuition fee. You do not want to risk your child’s future for the short-term market gains.

Second, research the company carefully before investing. Remember, you should always invest in companies, not stocks. There is a company behind every stock and if the company is constantly performing great, the stock will also give good returns over the long term. Start with getting the basics ideas about the company like what products/services the company provides, what is the recent growth of the company in its sectors, who are the major competitors of the company, how bright is the future of the company etc. Read the financial statements like balance sheet, income statement, cash flow statement etc of the company in detail. Compare the financial ratios with the peers. Although, there are a number of factors that should be considered before investing in a company in share market, however, few key financial ratio analysis are listed here.

Earnings Per Share (EPS) – Increasing for last 5 years
Price to Earnings Ratio (P/E) – Low compared to companies in same sector
Price to Book Ratio (P/B) – Low compared companies in same sector
Debt to Equity Ratio – Should be less than 1
Return on Equity (ROE) – Should be greater than 20%
Price to Sales Ratio (P/S) – Smaller ratio (less than 1) is preferred
Current Ratio – Should be greater than 1
Dividend Yield – Depends on Investor preference. Regular dividends for last 5 years favored.

Read more here: 8 Financial Ratio Analysis that Every Stock Investor Should Know

After studying the financial ratios, and if it meets the above-mentioned points, analyze the companies financial statements in depth. Look at the sales, profits, revenue etc. A constant growth in these over last 5 years should be favored. Lastly, find what this company is doing that its competitors are not which will give it an advantage against other companies in its sectors.

Once, you have studied the company carefully and are satisfied with its performance and expected future growth, then you can proceed further.

If you want to learn stocks from scratch, I will highly recommend you to read this book: ONE UP ON THE WALL STREET by Peter Lynch- best selling book for stock market beginners.

How to open a SBI Demat and Trading Account?

My friend recently opened an SBI Demat and Trading Account. It’s super simple and hassle-free. The whole procedure to open your trading and demat account take around 15 days. SBI also offers 3-in-1 account i.e. Saving+Demat+Trading account.

For opening your account, first, you need to call on the number provided on the SBI’s contact page. You can know the charges to open the account and other details on the same customer care number. Here is a link to the page: https://www.sbismart.com/contact-us On calling the support number, the customer care will ask for your details and the 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:

2 Passport-size photos.
PAN CARD
Aadhar Card (for address proof)

How to buy a Stock using SBI demat account?

Step 1: Search ‘SBI Smart’ on Google or go to https://www.sbismart.com/. On the home page, click on login and select ‘Trade login’ in the drop-down menu. Here is the snapshot of the steps shown:

Click on ‘Login’

How to buy a stock using SBI demat account

Select ‘Trade Login’

Step 2: Enter your login details. 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.

How to buy a stock using SBI demat account 2

Enter your login credentials

Step 3: After you logged in, you can notice the menu on the top ‘Dashboard/ Trade/ Market/ Tools/ Research/ Customer Service’.

Click on ‘Trade’. This will open the ‘Order Entry Page’.

How to buy a stock using SBI demat account 3

Order Entry Page

Step 4: Next Step is to transfer fund to your demat account. For transferring funds, scroll down on the ‘Trade’ Page. You will find ‘LIMITS’ option after scrolling down on the same page. Here, click on ‘MANAGE’. A snapshot of the page is shown below

How to buy a stock using SBI demat account 4

Click on ‘Manage’ in Limits to transfer funds.

Step 5: 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 more amount than required to your demat account or when you couldn’t buy the stock. In these cases, you can transfer funds from ‘Demat’ account to your ‘Saving’ Account using ‘FUND UNLIEN’.

How to buy a Stock using SBI demat account 5

Click on ‘Fund Lien’

After clicking on the ‘FUND LIEN’, it will redirect you to the payment option. Enter the amount 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:

Enter the amount and click ‘LIEN’

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

SBI net banking page

Step 6: After completing the 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: 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:

Select Equity (By default it should be equity. However, if it not, then select ‘Equity’).
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.
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.
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.
Next step is to choose the ‘Order type’. There are two types of order type- ‘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 ‘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 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.
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.
Finally, click on ‘BUY’ after carefully checking the details

Step 8: 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 ‘TRADE BOOK’ option, present on the same ‘TRADE’ page.

In addition, here is a video of the order entry which can help you further. (Source: Demos Sbismart)

That’s all! You have finally bought the stocks using SBI demat account. Congratulations!!!

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

https://www.linkedin.com/in/kriteshrules/

May 30, 2017 Kritesh Abhishek Investment Basics, Online Brokers 26 comments

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

Different Charges on Share Trading Explained. Brokerage, STT, DP & More- There are a number of charges involved while trading in India i.e. buying or selling of shares. Some of them are common like brokerage charge & STT, while there are many whom the investors are not afraid of. In this post, I am going to explain all of the different charges on share trading. Some of them are brokerage charge, Security transaction charge, stamp duty etc. But before we learn about them, there are few basics things that we need to understand first.

So, be with me for the next 8-10 minutes to understand the explanation of all the different charges on share trading.

Following are the things that you need to know first:

1. Intraday Trading and Delivery:

When you buy & sell a share on the same day, then it’s called an 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
On the other hand, 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 any day but today then it will be considered it 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 are the traditional brokers who offer full-service trading like stocks, commodities, currency along with research and advisory, sales and asset management, investment banking all in one account. For example, ICICI Direct, Kotak Securities etc.
Discount brokers are 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 and do not provide investment advice. For example, Pro stocks, Zerodha, Trade Smart Online etc.
In general, a full-service broker charge between 0.01% – 0.50% brokerage charge on Intraday and delivery.
The discount brokers charge a flat fee (fixed fee of Rs 10 or Rs 20 per trade) on intraday and delivery trading. There are also a couple of discount brokers who do not charge any fee on delivery trading.

It is important to note that you have to pay a brokerage charge on both times of trading i.e. while buying a share and selling a share. There are some brokers (very few) who charge brokerage fee only at one side of transaction i.e. either on buying or selling.

Let’s take an example to understand the brokerage charge better. Suppose there is a brokerage firm called – ABC. Now, ABC charges a brokerage fee of 0.05% on intraday trading and 0.30% on delivery trading. The total charges on both tradings can be given as-

Intraday Trading	Delivery
Brokerage charge= 0.05% of total turnover	Brokerage charge= 0.30% of total turnover
If we buy a single stock worth Rs 100, then Brokerage charge = 0.05% of Rs 100 = Rs 0.05	If we buy a single stock worth Rs 100, then brokerage charge = 0.30% of Rs 100 = Rs 0.30
Total brokerage charge on trading (for both buying and selling) = 2 * 0.05 = Rs 0.10	Total brokerage charge on trading (for both buying and selling) = 2 * 0.30 = Rs 0.60

As the competitions in the brokers are increasing, the brokerage charges are decreasing. In coming days, these rates can even reduce further.

Apart from brokerage charge, there are also an additional couple of charges and taxes to be paid while share trading. For example, Security transaction tax, service tax, stamps duty, transaction charges, SEBI turnover charges, depository participant (DP) charges and capital gain tax.

Let’s understand the other different charges on share trading and taxes involved first. Then we will see an example for further understanding.

Different Charges on Share Trading-

Security Transaction Tax (STT):

This is the second biggest charge after the brokerage charge.
For delivery trading, STT is charged on both sides (buy & sell) of trading.
For intraday trading, STT is charged only when you sell the stock.
In general, for delivery, the STT charge is around 0.1% of total transaction (on each side of trading)
For intraday, the STT charge is around 0.025% of the total transaction (while selling).

Service Tax:

It is same for intraday and delivery trading. Service tax is equal to the 15% of whatever brokerage charge you paid.

Stamp Duty:

This is charged by the state government. Different states have different stamp duty. Here is the stamp duty of two of the Indian states-

	Intraday	Delivery
Maharashtra	0.002%	0.01%
Delhi	0.0025%	0.0025%

Stamp duty is also charged on both sides of trading (buying & selling) and are charged on the total amount (turnover).

Transaction Charges:

This is charged by the stock exchanges. Transaction charges are charged on both sides of the trading and are same for both intraday & delivery.
National stock exchange (NSE) charges a transaction fee of 0.00325% of the total amount.
Bombay stock exchange (BSE) charges a transaction fee of 0.00275% on total amount.

SEBI Turnover Charges:

Here, SEBI stands for Securities exchange board of India and it is the security market regulator. SEBI makes the rules and regulations for the exchanges.
It is charged on both sides of transaction i.e. while buying and selling.
The SEBI turnover charge is 0.0002% of the total amount and is same for both intraday and delivery trading.

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.
They don’t charge the investors directory but charge the depository participant. Here, the broker company 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 approach depository directly. So, overall the depository charges the depository participant and then the depository participant (DP) charges the investors.
DP charges are a flat of between Rs 10 to 35 depending on your broker and this is also charged only for delivery trading (not for intraday)

Capital Gain Tax:

This is the most important tax to understand for a trader.
There are two types of Capital gain tax – Short-term capital gain tax and Long-term capital gain tax.
When you sell a stock before 1 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 1 year of buying, then it is called long-term capital gain tax. There is no tax on long-term capital gain.
For a short-term capital gain tax, the delivery trader has to pay flat 15% and it doesn’t matter what tax slab they are in. But this doesn’t apply to an intraday trader as they have to pay capital gain tax according to their tax slab.
As the long-term capital gain tax is nil, the big investors try to get maximum profit from it by investing for long term.

If you want to read further in details, I will recommend you to read this book: Everything You Wanted to Know About Stock Market Investing -Best selling book for stock market beginners.

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 long-term i.e. for 2-3 years. On the other hand, Prasad is an intraday trader.

They both have their accounts in same brokerage company named ABC. The brokerage charge for ABC is 0.05% on intraday trading and 0.30% on delivery trading. Also, let us suppose that both Rajat and Prasad have invested a total of Rs 10,000 in the shares of Tata Motors. 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-

	Rajat Delivery Trader (Long term)	Prasad (Intraday Trader)
Total Investment	Rs 10,000	Rs 10,000
Exchange	NSE	NSE
Brokerage Charge	0.30% of Total Amount = 0.30% of Rs 10,000 = Rs 30 Total brokerage charge= 2*30 = Rs 60	0.05% of Total Amount = 0.0% of Rs 10,000 = Rs 5 Total brokerage charge= 2*5 = Rs 10
STT	0.1% of total amount = 0.1 % of Rs 10,000 = Rs 10 Total STT = 2*10 = Rs 20	0.025% of total amount = 0.025 % of Rs 10,000 = Rs 2.5 Total STT = 1*2.5 = Rs 2.5
Service Tax	15% of brokerage charge =15% of Rs 60 = Rs 9	15% of brokerage charge =15% of Rs 10= Rs 1.5
Stamp Duty (Maharashtra)	0.01% of total amount = 0.01% of Rs 10,000= Rs 1 Total stamp duty = 2*1= Rs 2	0.002% of total amount = 0.002% of Rs 10,000= Rs 0.2 Total stamp duty = 2*0.2= Rs 0.4
Transaction Charges	0.00325% of total amount = 0.00325% of Rs 10,000= Rs 0.325 Total stamp duty = 2*0.325= Rs 0.65	0.00325% of total amount = 0.00325% of Rs 10,000= Rs 0.325 Total stamp duty = 2*0.325= Rs 0.65
SEBI Turnover Charge	0.0002% of total amount = 0.0002% of Rs 10,000= Rs 0.02 Total stamp duty = 2*0.02= Rs 0.04	0.0002% of total amount = 0.0002% of Rs 10,000= Rs 0.02 Total stamp duty = 2*0.02= Rs 0.04
DP Charge	Rs 15	NIL
Capital Gain Tax	0	Pays according to tax slab

Overall, here is the summary of all the charges and taxes paid by Rajat and Prasad.

	Rajat	Prasad
Brokerage Charge	Rs 60	Rs 10
STT	Rs 20	Rs 2.5
Service Tax	Rs 9	Rs 1.5
Stamp Duty (Maharashtra)	Rs 2	Rs 0.4
Transaction Charges	Rs 0.65	Rs 0.65
SEBI Turnover Charge	Rs 0.04	Rs 0.04
DP Charge	Rs 15	0
Capital Gain Tax	0	Pays according to tax slab
Total Charges	Rs 106.69	15.09 + Capital Gain Tax

On the 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. So, they have to pay these charges again and again.

Also, let us take a scenario where Prasad chooses to sell his stocks after 2-3 days as the prices were quite low on that day and he was expecting some price increase on next days. In such case, Prasad turns from an intraday trader to delivery trader. Hence, his total charges also changes from Rs 15.09 to Rs 169.69.

Let us also assume that Prasad makes a profit of Rs 100 on selling. So, the capital gain tax that he has to pay will be equal to 15% of Rs 100 i.e. Rs 15. Now his situation turns out like this-

Total Charges	Rs 106.69
Short term capital gain tax	Rs 15
Total Charges	Rs 124.63
Profit	Rs 100

Here, although Prasad’s profit is Rs 100, still his expenditure is Rs 124.69 on different charges. Overall, Prasad is in loss of Rs 24.69.

Hence, 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.

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: Different Charges on Share Trading Explained, Different Charges on Share Trading Intraday, Different Charges on Share Trading long term, Different Charges on Share Trading in delivery trading, common different Charges on Share Trading

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

April 28, 2017 Kritesh Abhishek Investment Basics, Online Brokers 56 comments

How to trade in ICICI Direct? Buy/Sell Stocks

How to trade in ICICI Direct? Buy/Sell Stocks– ICICI direct is one of the best online broker websites for buying or selling a stock on the stock market. Using ICICI direct, you can buy or sell a stock within two minutes using your phone/laptop. The brokerage charge for the ICICI direct is decent and the interface is very user-friendly to easily understand how to trade in ICICI direct.

In this post, we are going to discuss how to trade in ICICI direct. So, be with me for the next 5-10 minutes to learn the basics of trading with ICICI direct.

For those of you who are here for a quick answer, here is the video on how to trade in ICICI direct which can help you to learn the trading process fast. But, I do recommend you to read the complete post in order to get an in-depth knowledge of trading in ICICI Direct. Here it the video –

Youtube Video:

Source: ICICI Direct

First of all, you need to know that the market opens from 9:30 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. So, basically, you can place an order to buy the stocks during market days when the market is opened from 9:30 Am to 3:30 PM. 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 88. Then you place a limit price 88 against the market price which is 90).

You can also place orders outside the market timings i.e. before 9:30 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, 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 know about the background of the stock market timings, let’s move towards the topic of the post – how to trade in ICICI direct? Buy and sell stocks.

If you need help in opening your stock brokerage account, feel free to check out this awesome website- Nifty Brokers.

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 the ICICI direct. If you open a 3-in-1 (Saving+Demat+Trading) account in ICICI Direct, you can have the access to buy/sell and hold your stocks using the same account. Therefore, if you are new to trading, 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 the 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 inside 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 500. 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 500. 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 if you have a 3-in-1 ICICI Direct account. The steps are as follows:

Go to the 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 an 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 which you added in step 2. If you need more money, you can add 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. If you want to buy the tata motors stock only when the price is Rs 465 or lower, select ‘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. 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.

So, that’s all. This is the process of How to Trade in ICICI Direct.

Quick Note: After the trade in 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.

That’s all. I hope this post 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.

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

https://www.linkedin.com/in/kriteshrules/

April 10, 2017 Kritesh Abhishek Investment Basics, Online Brokers 66 comments

Where to open your Demat & Trading account?

Difference between demat and trading account?

Do you need a stockbroker to trade in stocks?

What is a stockbroker?

What are the types of stockbrokers in India?

Brokerage comparison while using full-service vs discount brokers

What factors to check while selecting your stockbroker?

Where should you open your demat and trading account?

Which stockbroker do I use?

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

How to open your demat and trading account?

Can I open multiple accounts?

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

How to close your demat account?

Closing Thoughts

How to Open a Demat and Trading Account at Zerodha?

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

How to open a demat and trading account at Zerodha?

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

Account opening charges at Zerodha

How to open your account with Zerodha Online?

Short Answer:

A Quick Intro to DigiLocker:

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

Address:

Offline Account Opening Process:

What Next?

Closing Thoughts:

How to apply for an IPO with Zerodha Account?

Before you apply for an IPO:

Steps to apply for an IPO with Zerodha Account:

Closing Thoughts:

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

Zerodha Review –Brokerage, Trading Platform & 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:

Cons:

6. My experience of using Zerodha

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

8. Closing Thoughts

8 Best Discount Brokers in India – Stockbrokers List 2019

What exactly is a discount broker?

Best Discount Brokers in India

1. Zerodha

2. 5Paisa

3. Upstox

4. Trade Smart Online

5. SAMCO

6. Wisdom Capital

7. Tradejini

8. Fyers

Closing Thoughts: Discount brokers in India

Trade Smart Online Review – Discount Demat Trading Account

<img class="size-full wp-image-7892 alignright" src="https://www.tradebrains.in/wp-content/uploads/2019/08/trade-smart-online-discount-broker-1.gif" alt="trade smart online discount broker 1" width="300" height="300"/>

Special Offer:

Table of Content

Trade Smart Online Review – Discount Demat Trading Account

Trade Smart Online Brokerage Charges

Comparison of brokerage charges:

Trade Smart Online Account Opening Charges & Maintenance Charges

<img class="aligncenter size-full wp-image-7893" src="https://www.tradebrains.in/wp-content/uploads/2019/08/trade-smart-online-discount-broker-2.gif" alt="trade smart online discount broker 2" width="728" height="90"/>

Trade Smart Online Margin / TSO Leverage/ Exposure

Pros and Cons of Trade Smart Online Broker:

Trade Smart Online Trading Platforms

— SINE Trading App:

— NEST Trader:

— SINE WEB:

How to Open Brokerage Account with Trade Smart Online?

Closing Thoughts:

How to Open Demat and Trading Account at 5Paisa?