Are you contemplating investing? Are you looking for a better investment avenue than a traditional FD (Fixed Deposit), as the current FD rates are low? If yes, you may consider stock market investments.
Investing in stock markets is relatively easy. All you need to do is open Demat and trading accounts. A Demat account holds your securities like shares, mutual funds, ETFs (Exchange Traded Funds), etc., in electronic format. In other words, it is an account that holds your stock market securities in dematerialized form. As per SEBI guidelines, you are mandated to open a Demat account to invest in stock markets.
On the other hand, a trading account is essential for buying and selling securities in secondary markets. Nowadays, many brokers allow you to go with free Demat and trading accounts.
If you do not know how to start trading in India, then you may use internet search engines to access various websites providing information on the same. You may also get in touch with your broker or investment advisor to understand how to start trading in India.
Reasons why stock investments are made easy with free Demat and trading accounts
- Online application
You can open Demat and trading accounts online from the comfort of your home with a broker of your choice. You need to fill out the Demat and trading account opening forms on the chosen broker’s website, and upload scanned copies of requisite documents. You need to provide soft copies of your identity proof, address proof, canceled cheque, PAN card, and e-signature as supporting documents.
The next step is IPV (In-Person Verification). Some brokers may ask you to record a video while reading aloud a given script. Then the final step is to affix your e-sign and undergo an OTP verification through your registered mobile number. Once all the KYC formalities are done, your accounts will become active for trading. You can complete the entire application process within 10-15 minutes.
- Lower transaction costs
As mentioned earlier, you can open free Demat and trading accounts online. Many brokers offer affordable subscription packs with cost-saving features like AMC (Annual Maintenance Charges) waiver on Demat account, low brokerage on delivery and intraday trades, nominal MTF(Margin Trade Financing) interest rates, etc.
Moreover, if you wish to open a low brokerage trading account, you may choose a discount broker instead of a full-suite broker. As discount brokers, unlike the full-suite brokers, do not provide research and advisory services, their operational costs are low. Hence, if you have good knowledge of stock selection and trading, a discount broker may be the best bet for you, as your brokerage costs become lesser.
In short, low brokerage trading accounts minimize your transaction costs. Moreover, most brokers either follow the flat-fee pricing model or the volume-based pricing model. You may choose a broker or subscription plan as per your trading frequency. If your trading volumes are high, a flat-fee brokerage plan may be ideal.
- Robust trading platforms
Some online brokers provide you with swift and state-of-the-art online trading platforms. Such platforms also have built-in stock market indicators. You can access and analyze many technical indicators to understand stock market momentum, pricing patterns, price trends, etc. Whether you are a long-term investor, swing trader, or day trader, these trading platforms are helpful for all.
Final Words
Stock market trading and investing have become a lot easier with free Demat and trading accounts. Moreover, most brokers offer competitive price plans for different types of investors. For instance, if you are new to stock markets, you may opt for beginner subscription packs. As you gain expertise, you may upgrade yourself to subscription plans with advanced features like MTF, derivative trading, etc. Low brokerage trading accounts are like a cherry on top that further reduces your trading costs.
