To start trading in Indian share market or stock market , you need a
Demat and trading account. Demat and trading accounts in India are
provided by the two depositories, NSDL ( National Securities Depository Limited ) and CDSL ( Central Depository Services Ltd ), through brokerage
ﬁrms, also known as stock brokers or share brokers.
The trading account is where you will place bids for buy or sell orders and Demat account is for holding your shares in dematerialized form.
The trading of shares in Indian stock market takes place on two stock
exchanges – the Bombay Stock Exchange (BSE) and the National Stock
Steps to open a share trading account
- Find a broker
The ﬁrst step is to ﬁnd a stock broker or ﬁrm.
Stock brokers are of two types – full service and discount.
A full-service broker provides a variety of services along with buying and selling of shares such as research and advice as well as retirement and tax planning.
For example, if you open your trading account with a bank subsidiary, it can be your a 3-in-1 account, i.e., a savings bank account, a demat account and an online trading facility. Other full-service brokers provide all these facilities except a savings account.
Discount brokers are new to India. They charge a much lower fee than full-service brokers and don’t provide unnecessary add on features . They only provide the necessary trading facility at the least possible cost.
Compare brokerage rates
Every broker charges commission and certain fees for processing investors order. These charges can vary from broker to broker.
Some give discounts on the basis of the amount of trades conducted. Take all this into account before opening an account. But don’t over-emphasise the point. You need to understand the facilities oﬀered.
You can visit the oﬃce of broker or ask the broker to send its representative to your house with the account opening form and the Know Your Client (KYC) form. But Now a days with growing digital platforms you can open your stock trading account within minutes and complete the KYC process online as well. Example : Zerodha
You need to ﬁll up these forms and submit it along with identity and address proofs such as Voter ID card, PAN card, birth certiﬁcate, passport, ration card etc.
Once your application is veriﬁed, you will be given your trading accounts details