Various Topics in Stock Markets
• What is Stock Market
• What is Stock Exchange
• How buying and selling of shares happens in stock market
• Type of Markets
• What is Trader and Investor
• Types of Trading and Investments
• How Start investing or trading in stock market
How to open a Demat account?
You have to approach a Depository Participant (DP) to open a Demat account.
Most banks are DP participants so you can approach them or else you can contact us.
To have latest list of registered DP please visit websites www.nsdl.co.in and www.cdslindia.com
A broker and a DP are two different people.
A broker is a member of the stock exchange, who buys and sells shares on his behalf and also on behalf of his customers.
A broker can also be a DP.
Following are the documents required to open Demat account
When you approach any DP, you will be guided through the formalities for opening a demat account.
The DP will ask to provide some documents as proof of your identity and address.
Any two documents from the below list are required to open demat and trading account. Pan card is mandatory
PAN card, Voter’s ID, Passport, Ration card, Driver’s license,
Photo credit card Employee ID card, IT returns, Electricity/ Landline phone bill etc.
Do you need any shares to open a Demat account?
NO. You need not have to have any shares to open a demat account.
A demat account can be opened with no balance of shares.
And also there is no restriction to maintain any minimum shares. You can have a zero balance (shares) in your account.
How much it cost to open a Demat account?
The charges for demat account opening varies from broker to broker of from DP to DP. Nowadays some brokers are offering
free account opening.
Generally some broker charge one time account opening fees
After successfully opening the demat account you are ready to do buying and selling of shares in share market exchanges like
BSE and NSE.
Important points to remember while opening online demat account
1) Do multiple enquiries with various brokers or DP’s and try getting low brokerage charges.
2) Also discuss about the margin they provide for day trading.
3) Discuss about fund transfer facility. The fund transfer should be reliable and easy. Fund transfer from your bank account to
trading account and fund payout from your trading account back to your bank savings account.
Some online share trading account has integrated savings account which makes easy for you to transfer funds from your saving
account to trading account.
4) Very important is about service they provide, the research calls, investment stocks, daily trading tips and other advice.
5) Also enquire about their services charges and any other hidden fees if any.
6) Check how reliable and easy is to contact them in case of any emergency, like buying and selling of shares on immediate basis
or in case of any technical or other problems at your side while trading yourself.
7) You can also request to broker for demonstration of the trading terminal software and check how comfortable it is for you.
There are various brokers and DP, please contact us for more information of brokers.