Opening A Trading Account Was Never So Easy
Choose from some of the most value-based trading accounts with HMA Trading, your ultimate stock trading partner.
Stock trading is a complex mechanism due to the presence of a number of elements and a trading account in one of them. Though opening a trading account in today’s digital landscape is no big thing, choosing the right trading account is necessary. At HMA Trading, we help you pick the best trading account in India for your stock trading needs. We present you with the best-performing trading accounts and let you compare them same easily.
To purchase or sell shares, bonds, or other assets, a trading account is required. Prior to the advent of online trading accounts, the stock exchange had an open outcry method in which buyers and sellers would compete for shares on the trading floor or in a ring. You no longer need to physically be present at a stock exchange to create a Demat and trading account and place orders.
Top Demat Trading Accounts in India
Here are some of the best-performing trading accounts in India to choose from.
Based out of Bengaluru, Zerodha is the biggest discount stockbroker in India. The stockbroker is the one who initially introduced the concept of cheap brokerage in India.
Today, they have even surpassed the most reputable and well-known brands in India, like ICICI Direct and ShareKhan. The best aspect of Zerodha is that delivery-based transactions are free of brokerage fees. The price per completed order for intraday and derivative trading is Rs 20.
- Trading Account Opening Charges: Rs 200
- Account AMC Charges: Rs 0 (Free)
Another popular name in the industry is Upstox. The stockbroker allows traders and investors to trade in equities, commodities, currency, futures, options across BSE, NSE, and MCX. Upstox Pro Web and Upstox Pro Mobile are two of its prominent trading platforms.
The best thing about Upstox is that it is supported by some renowned business honchos like Kalaari Capital, Ratan Tata and GVK Davix. It offers paperless account opening to its clients.
- Trading Account Opening Charges: Free
- Demat Account Opening Charges: Free
- Trading Account Maintenance Charges: Rs 0
Angel One is considered one of the most reputed full-service retail brokers in India. It started working in 1987, offers online discount brokerage services to traders and investors. The stock broking firm offers a wide assortment of trading and investing services including stock and commodities broking, margin lending, investment consulting, financial products distribution, and loans against shares.
- Trading Account Opening Charges: Rs 0 (Free)
- Account AMC Charges: Rs 0 (Free)
Without including India Infoline (IIFL), the list of the best trading accounts in India will fall short of being comprehensive.
The largest independent full-service broker, IIFL was founded in 1995 and serves both institutional and retail clients. They have several locations in all of India’s main cities and towns. They are present in other cities as well, including Dubai, Colombo, New York, Singapore, Hong Kong, and London.
- Trading Account Opening Charges: NIL
- Demat Account Opening Charges: NIL
- Trading Account Maintenance Charges: NIL
The brokerage division of Kotak Mahindra Bank, its parent company, is Kotak Securities. It provides services in a variety of industries, including portfolio management, stocks, derivatives, ETFs, and currencies.
They serve more than 12 lakh customers. There are more than 1200 of their branches and franchisees spread over 360+ cities and villages. Kotak Securities is the top-rated Demat account in India as a result of all these criteria.
- Trading Account Opening Charges: Rs 750
- Demat Account Maintenance Charges: Rs 50 per month
What is a Trading Account?
A trading account is a prerequisite for a trader or investor to trade in stocks. This is so that you may trade the same shares on an electronic system through a unique account known as a trading account when a firm offers its shares on the stock market. Such an account can be obtained by signing up with a business or brokerage. With this account, you are given a special trading ID that gives you access to execute trades.
What is a Demat Account?
The shares are kept in a Demat account, also known as a dematerialized account. Your shares are converted from a physical to an electronic format via a Demat account. All of your purchases, including shares, bonds, futures, options, exchange-traded funds, mutual funds, and other assets, are kept in that account. Like bank accounts, every Demat account has a specific account number. A Demat account can be opened with no or no balance. In addition, there is no requirement for the minimum amount of shares in your account.
Difference Between Demat and Trading Account
The difference between a Demat account and a trading account can be understood by comparing them across different parameters listed below.
The roles that each account plays are a key distinction between the two. A trading account is employed to buy financial securities from a Demat account and sell them in an open market. On the other side, a Demat account allows traders and investors to keep a check on their financial instruments that are stored in an electronic format. This also functions in a way that enables you to convert securities in electronic format into physical form.
A trading account works the same manner as your present bank account; in fact, it connects to both your bank account and your Demat. Withdrawing your shares from your Demat account is a practical way to sell them on the market. The shares and securities that you purchase from the market are kept in a Demat account. A Demat account acts like a savings account, in contrast to a trading account, which operates like a current bank account.
Even though they are different from one another, these two accounts are essential for any share market transaction. You utilize the trading account to purchase shares of any firm as an investor. The funds are taken out of your bank account, and the shares are likewise credited to and shown in a Demat account.
How To Open A Trading Account?
Opening a Trading Account is made simple in the form of the following process:
Step 1: The first thing to do is to choose a stockbroker or a broking firm.
Step 2: Perform a comparative analysis of the brokerage charges and the offered services.
Step 3: Consult the shortlisted broker for trading account opening.
Step 4: Fill out an account opening form, provide KYC details, and submit the form along with your ID and address proof.
Step 5: Go through an application verification process.
Step 6: Receive the details of your trading account.
Step 7: Begin Trading!
Documents Required To Open A Trading Account
Passport, driving license, voter ID, Aadhaar card, or bank account statements for the last 3 months)
6 months bank statement, net-worth certificate, 3 months salary slips, Income Tax Return (ITR) statement, demat holding statement, or holding report
Sign on a white paper and click a picture of the same
Cancelled cheque, passbook, bank account statements for the last 6 months
One passport-size photograph is required
Looking to open a trading account with the best stockbroker in India? `Consult HMA trading today and explore the best option regarding a trading account.
FAQs – Trading Account
1. Do I need to submit my Aadhaar card for the trading account opening?
Ans. NO, an Aadhaar card is not mandatory for a trading account. However, it can be used as address proof to open a trading account. Other documents that can be considered address proof to open a trading account include a voter ID card, passport, driver’s license, passport, electricity/water bill not more than 3 months old, and bank statement of the past 3 months.
2. What are the charges for opening a trading account in India?
Ans. The charges of trading account opening can be accessed through the website of the stockbroker.
3. Can I open my trading account online?
Ans. Absolutely, today most stockbrokers allow traders and investors to open a Demat and trading account digitally.
4. How do I ascertain that my trading account has been opened?
Ans. You are likely to receive an SMS or an email on your registered email id with the used Id and password.
5. Can I open a trading account for my son?
Ans. Minors cannot open brokerage accounts as they are not allowed to buy stocks.