When thinking of stepping into the stock market, having a Demat account would be your first step. Why, you ask? Well, because all mutual funds, shares, and other securities that you trade are stored here. That too, in a digital form, eliminating the need for physical certificates. 

What is a Trading Account?

A trading account is your primary account with all your investments. It is the trading account that an investor uses to buy or sell shares, bonds, and other securities. 

Free Trading and Zero Brokerage

Trading accounts are issued via stockbrokers. Now, several stock brokers have started providing zero brokerage trading accounts. Wondering what a zero brokerage trading account is? Well, a zero brokerage trading account allows you to trade or place orders easily without applying any brokerage charges for the same. 

One of the most prominent benefits of using a zero brokerage trading account in India is that it helps enhance your intraday trading practices. Wondering how? By reducing or eliminating the transaction costs, these accounts help you trade more frequently.

Opening a Trading Account

Now that you know what a trading account is and what are the benefits of zero brokerage accounts, let’s move ahead. Here is how you open a trading account. 

• Have Your PAN Card Ready

Having an identity proof is a must to open an account and a trading account is no exception. To open your trading account, get your PAN card ready. You will need documents like address proof and birth certificate for the same. 

• Start with Opening a Demat Account 

Now you may open your demat account. You can do it online by applying to the National Services Depository Limited (NSDL) or Central Depository Services Limited (CDSL). 

• Choose Your Broker and Trading Account 

Now choose your stock broker to open your trading account. You can make an informed choice by comparing different brokers. Follow their prices, features, and other services offered. 

Now open a trading account by completing your KYC details. This will include filling in your personal information, attaching essential documents, like PAN, identify proof, and whatever is asked. 

• Get Your Login Details

Now, once you’re done with your KYC, and your trading account is opened, you will get a unique login Id and password. 

• Closely Monitor Your Account 

Once your account is opened, your broker will send you regular on-placed and completed orders. Keep following them to track your everyday account activity. 

• Stay Updated 

Opening an account is just the start, trading is much more than that. You need to be market alert and follow all the relevant trends. Tracking these fluctuations can help you earn profits. 

• Have Your Portfolio 

Once you have done some basic trading and have good market knowledge, start diversifying your portfolio. This helps you spread the risks, thus, minimising them.

Charges and Fees

While choosing a suitable broker for yourself, considering the fee structure is quite important. Understand all their transactional and service charges. Some brokers have different fees for different trades. Compare all these factors to choose a suitable broker. Additionally, even with zero brokerage trading accounts in India, sometimes there may be some hidden costs, make sure you track all these before opening an account. 

Process to Open a Demat Account

A trading account helps you trade. However, all your trading investments are stored safely in a demat account, thus, having a demat account is a must. Here is how you open a demat account:

• Choose a suitable DP. Scroll their services, charges, and more to make an informed choice. 
• Now complete your demat form. Make sure you fill in all your details properly avoiding any kind of mistake. 
• Attack all the necessary documents. Also, self-attest each of them.
• Once you’ve completed your form and attached all the necessary documents, submit them. Your details will be verified by the DP and after a successful verification, your demat account will be opened. 

Conclusion

A zero brokerage trading in India account offers a variety of benefits. This includes their cost-effectiveness, better transparency, and improved trading frequency, making them suitable for intraday trading for beginners. Consider following this guide to open your trading account and start your investment journey.

Read Also: How Zero Brokerage Demat Accounts Are a Game Changer for Indians

• Country: India