How to buy a Stock using SBI demat account?
A short guide on how to buy a stock using SBI demat account – SBI Smart (Updated)? State bank of India is the biggest public sector bank in India. After the merger of the SBI with its associate banks (State Bank of Bikaner and Jaipur, State bank of Hyderabad, State bank of Mysore, State bank of Patiala and State bank of Travancore), SBI has entered the league of top 50 global banks with over 500 million customers and 22,500 branches.
Because of this huge number of customers in state bank of India, the active number of demat and trading account holders in SBI is also high. However, even though they have a 3-in-1 account, many such users do not know how to use their demat account. Or many are yet in the process to learn how to buy a stock using the SBI demat account and use it for trading.
Therefore, in this post, we are going to discuss step-by-step procedures on how to buy a stock using SBI demat account. Be with us for the next 10-15 minutes to learn the skills of how to buy a stock using SBI demat account. After reading this post, you will be able to easily start trading using SBI demat and trading account to buy and sell your favorite stocks.
However, before we start this post, let me quickly summarise the key features and charges while trading in stocks with SBI. Let’s get started.
Introduction to SBI Cap Securities
SBICap securities is a trusted brand and subsidiary of State Bank of India (SBI) with an aim to offer trading facilities to the SBI clients. Being a subsidiary of the largest national bank in India, the SBI cap has got over a million clients with a demat and trading account. They offer full service to their clients like investing/trading in stocks, derivatives, currency, mutual Fund, IPOs, ETFs, Bonds, FDs, Insurance, and more.
Charges and Brokerages
- Account opening charge: Rs 850
- Annual Maintenance Charge (AMC): Rs 500
- Delivery Trading charges: Higher of 0.50% or 5 Paisa per share
- Intraday Charges: Higher of 0.15% of 5 Paise per share
Trading Platform: SBIcap offers the SBI Smart web trading platform for trading in stocks, mutual funds, commodities and more.
The biggest advantage of trading with SBIcap securities is that they offer a 3-in-1 account. That is, users can open savings, demat and trading account, all at one place. Moreover, being an umbrella platform to invest in stocks, bonds, mf, fds etc with large office presence also makes it attractive for the clients.
On the downside, a few disadvantages of trading with SBI cap is its high brokerage charges (compared to the newly fastly growing discount brokers) and below-average customer service.
How to open SBI Demat and Trading Account?
We have already published a detailed article on how to open demat and trading account at SBI, earlier. You can read that article here. Anyways, let me give a quick summary of the account opening process with SBI.
Opening an SBI Demat and Trading Account is super simple and hassle-free. It can be done either online or offline. SBI offers a 3-in-1 account i.e. Saving + Demat + Trading account. If you already have got a saving account with SBI, then you just need to open a demat and trading account. The whole procedure to open your trading and demat account takes around 5-7 days if you open offline by visiting its office or calling a customer care executive.
For opening your account, first, you need to call on the number provided on the SBI’s contact page. Here is a link to the page. After calling the support care number, the customer care will ask for your details and a suitable time to meet you and bring the account opening form for getting signed.
In addition, the support executives will themselves come to collect the required documents to open the account. Here is the list of the documents required for opening the demat and trading account: PAN CARD, Aadhar Card (for address proof) & Passport-size photos. If you already have a bank account with SBI, you need to submit bank proof like canceled cheque or bank statement.
How to buy a Stock using SBI demat account?
Now that you’ve got a basic understanding of SBIcap securities, let’s discuss the main topic of this post i.e. how to buy a stock using SBI demat account. To trade in stocks using SBI demat account, follow the following steps.
Step 1: Go to SBI Smart website
Search ‘SBI Smart’ on Google or directly go to the SBI Smart website using this link. On the home page, click on login and select ‘Trade login’ in the drop-down menu. Here is the snapshot of the steps shown:
Step 2: Enter your login details.
On the SBI smart page, you will need your ‘Client Code’. ‘Password’ and ‘PAN Card’ to login. You will get these details via email, once your account is opened. If you are first time user, then SBI will ask you for a one time password with ‘Client code’. You will need to change to a new password after entering.
Step 3: Go to Order Entry
After you logged in, you can notice the different menu on the top like Dashboard, Trade, Market, Tools, Research, Customer Service’. Click on ‘Trade’. This will open the ‘Order Entry Page’.
Step 4: Transfer funds to your demat account.
The next step is to transfer funds to your demat account. For transferring funds, scroll down on the ‘Trade’ Page. You will find the ‘LIMITS’ option after scrolling down on the same page. Here, click on ‘MANAGE’. A snapshot of the page is shown below
Step 5: Fund Lien
After clicking on ‘Manage’, the ‘FUND LIEN’ Page will open. Now, click on the ‘FUND LIEN’ option on the right to as shown below.
Please note that there is also an option of ‘FUND UNLIEN’. This is used in the case when you transferred extra amount than required to your demat account or when you couldn’t buy the stock. In these cases, you can transfer funds from the ‘Demat’ account to your ‘Saving’ Account using ‘FUND UNLIEN’.
After clicking on the ‘FUND LIEN’, it will redirect you to the payment option. Enter the amount for which you want to buy stocks. For example, if you want to buy stocks using Rs 10,000; enter ‘10000’ in ‘Amount in Figure’ and click on ‘LIEN’. Here is the snapshot of the page:
Next. it will redirect you to the NET Banking page. Enter your login credentials (Username and password) and then complete the payment.
Step 6: Check the Lien Amount
After completing Step 5, you have transferred the funds to your demat account. You can check the transferred fund by going to ‘LIMITS’ on ‘TRADE’ page and viewing the ‘Net Lien Amount’. This will be equal to the transferred amount.
Step 7: Place Trade Order
Next step in to buy the stock. Go to the ‘TRADE’ option on the top menu and this will again open the ‘ORDER ENTRY’ page. It will look like this:
Next, follow the below-mentioned steps to buy the stock:
2. Then select the preferred ‘Stock exchange’ beside ‘EQUITY’ Option. There will be the options of NSE (National Stock Exchange) or BSE (Bombay stock exchange). Select either NSE or BSE. It doesn’t make much difference which stock exchange you choose. Both are almost similar.
3. Besides the stock exchange, enter the name of the stock you want to buy and click on ‘GO’.
4. After clicking on ‘GO’, the ‘market price’ of the entered stock will be shown along with the ‘bid’ and ‘ask’ price. Notice the market price carefully and decide whether you want to buy that stock or not.
5. The next step is to choose the ‘Order type’. There are two types of order types- ‘Market’ or ‘Limit’.
The ‘Market’ order type will buy the stock at the current market price. For example, if the current price of NHPC stock is Rs 30.20 and you want to buy this stock at that market price, you should select the ‘Market’ option. Further, please note that the market price fluctuates too fast and it might change till the time you click on ‘BUY’. Therefore, decide quickly if you want to buy on the ‘Market Price’ or not.
The second option is ‘LIMIT’ option. Here, you can select the amount at which you want to buy the stock. For example, if you want to buy the NHPC stock at Rs 29, then you can place the order type as ‘LIMIT’ and enter the price of Rs 29.
Further, please note that its easier to buy stocks at ‘Market’ price as there are many sellers at the market price at that moment of time. However, the sellers might not agree to sell their stocks at the ‘LIMIT’ price you are asking. In this case, you might not be able to buy the stocks. When placing a ‘LIMIT’ order type, place the limit amount logically by following the trends.
6. After selecting the order type, enter the ‘Quantity’ (QTY) of the stock you want to buy. For example, if you want to buy 10 stocks of NHPC, then enter 10 in the QTY option.
7. Finally, click on ‘BUY’ after carefully checking the details
Step 8: Confirm your Trade
After clicking on ‘BUY’, a confirmation page will appear. Click on ‘Confirm’.
After confirming the order, you have successfully placed your order. You can verify this by going to ‘ORDER BOOK’ present on the same page. Scroll down to the ‘TRADE’ page, and you will find the ‘Order book’. Once the order is successfully completed, you can check the stocks bought at the ‘TRADE BOOK’ option, present on the same ‘TRADE’ page.
Congratulations. You have finally bought the stocks using SBI demat account!!!
SBIcap securities offer one of the most popular demat and trading accounts with full-broker service to their clients. In this article, we discussed on how to trade in stocks using SBI smart. Besides, here is a short video of the order entry which can help you further to understand placing order.
(Source: Demos Sbismart)
That’s all for this post. I hope this article on how to buy a Stock using SBI demat account is useful to you. If you have any doubts related to trading in SBI demat account, feel free to comment below. I’ll be happy to help. Happy investing & trading!
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Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting