The stock market, equity market, or share market is a place where many companies are listed and people earn a profit by selling or buying shares of those companies.
There are some stock exchanges in the stock market on which companies are listed and people buy and sell these companies.
First process to invest in stock market
Previously, people had to do a lot of paper work to invest in the share market, but now people have gone digital which has made it much easier to invest in the share market.
To invest in the share market, people first have to open a Demat and trading account. When we open a Demat account, then the trading account also opens with it.
Now the question must be arising in the mind of people that what is a Demat and a trading account, then let’s know a little about it, you should be easy to understand further
Demat account (Share market)-
Demat account is like a bank account. Money is deposited in the bank account but the shares of the company are kept in the Demat account. If we say in other words, the Demat account is opened to keep the shares of the companies.
When we buy the shares of a company, it takes T + 2 days for those shares to be credited in the Demat account where T means TODAY.
Trading account (Share market)-
Money is deposited to buy shares of companies in a trading account, that is, the account whose money is used to buy shares of companies is called a trading account.
Many brokerage companies in India provide the facility of Demat and trading account but it is our responsibility to open a Demat and trading account in which broker companies.
How to choose broker company
- We should open a Demat account in a brokerage company which has a low brokerage charge
- We should open a Damat account in a brokerage company with good customer service
- If you do not have time to analyze the company shares, then you should choose a full-service brokerage company, which advises you to invest the company shares by analyzing them.
- You should open a Demat account in a brokerage company whose app features are very good.
Types of Brokerage company
Three types of brokerage are available
- Bank Brokers
- Discount Brokers
- Full-Service Brokers
This types of broker provide bank account, trading account and demate account, means 3in1 account
- Charges are very high compare to full service and discount brokers
- Account opening charges will be taken as bank policy
- Brokerage is comparatively high with a discount broker and full-service brokers
- This type of also provide advice about stock market
- Example SBI CAP Securities, ICICI Securities, HDFC Securities, Axis Direct, Kotak Securities, Canara bank Securities, etc
This type of brokers provides only trading and demate account
- Charges are very low or 0
- Zero account opening charges
- Low brokerage
- Example Zerodha, Upstox, Angel Broking, 5paisa, SAMCO, Indiabulls, Master Trust, Trade Smart Online, Alice blue, SAS online
3-Full Service Brokers
This type of brokers provide demate account, trading account and also provide trading or investment advice
- Charges comparatively high with discount brokers but not banking brokers
- The high amount is taken by the firm for account opening
- Example Kotak Securities, ICICI Direct, Edelweiss, Angel broking, Sharekhan, IIFL or India Infoline, Motilal Oswal, HDFC Securities, etc
OPEN DEMAT ACCOUNT IN ZERODHA
OPEN DEMAT ACCOUNT IN UPSTOX
Earlier Upstox did not charge any fees for opening Demat and trading accounts but since March 2020, they have kept the minimum fees for opening accounts 293.80.
If you open a Demat account in Upstox from our given link, then we will transfer the opening fee (Rs. 100) to your bank account within 30 days after opening the Demat account. Here offer is only till 14 June 2020
If you want to know the process of opening a Demat account in Zerodha and Upstox, then you can know by clicking on the link given below. https://www.capitalcred.in/2020/05/24/2-process-of-demat-account-opening/