Navigating the intricacies of stock trading has become more seamless with the introduction of trading accounts. The advent of new trading applications has enabled investors to trade on various stock exchanges effortlessly, eliminating the need for physical presence. In the past, acquiring shares required investors to be physically present, leading to a cumbersome process with a settlement period of 14 days. The introduction of Demat and trading accounts has significantly addressed and resolved these challenges in the trading landscape.
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Process of Opening an Online Trading Account
- Opening an online trading account initiates a seamless connection between your Demat account and bank account, facilitating the fluid movement of shares and funds.
- When you sell a share, it is debited from your Demat account, and the corresponding money is credited to your bank account. Conversely, when purchasing shares, the money is deducted from your bank account, and the shares are credited to your Demat account.
- The introduction of the trading account marked a significant leap from the traditional outcry system, streamlining the entire trading process.
- Each trading account is intricately linked to a unique trading ID, providing a personalised and secure trading experience.
Advantages and Features of Using a Trading Account
The Securities and Exchange Board of India (SEBI) mandates that a trader must have a trading account to buy and sell assets on various exchanges. There are multiple advantages and benefits that an online trading account provides. Here are a few advantages and features of having and using a trading account.
- Trading can be done on the go or from the comfort of your homes
- Complete information regarding the stock market and various other assets
- Buy and sell orders can be placed after the market is close to be executed tomorrow
- Trades can be carried instantaneously
- Easy portfolio management
- Access to research reports
- Trading becomes a liquid asset as the settlement date is shortened
- Safe and secure shared transportation
To make use of all this and many more benefits, there are certain trading account charges that you might have to incur.
Trading with Share India
Share India, with over two decades of stock market experience, aims to become a household name in India, offering a seamless and paperless onboarding process. Specifically tailored for use by novice traders as well, Share India provides educational resources through articles and YouTube videos. The trading platform serves as a comprehensive solution for all stock market-related activities, emphasising algorithmic trading products for every Indian citizen. Explore different strategies with Share India’s demo trading account to enhance your trading skills.
Fees and Charges
There are multiple charges for trading accounts that you could encounter, especially when you try to open a new trading account and a Demat account. Here are a few charges Share India levies with regard to the trading account
- Account Opening Charges: Share India has no trading account opening charges. You can open a trading and Demat account quickly without paying a single rupee in just four simple steps.
- Account Maintenance Charges (AMC): There are no additional charges that Share India levies for the annual maintenance of the trading account. Instead, they have a Demat account annual maintenance charge which is exempted for the first 365 days. Post this time period Share India charges ₹300 per annum as AMC for your Demat account.
- Trading Brokerage: Before opening a Demat account, it’s always a good idea to be aware of the brokerage that will be charged. Understanding this and comparing it to other brokers will help you make a better decision. Try our brokerage calculator here and see how easy it is to estimate the brokerage fees for your next trade.
- Equity Delivery: Share India charges no brokerage for equity delivery, which means they provide free equity delivery.
- Equity Intraday: The maximum that Share India charges is ₹10. Generally, the brokerage collected by Share India is 0.03% of the total turnover from the trade.
- Equity Derivative Futures: Just like intraday delivery charges, Share India charges 0.03% or ₹10 whichever is lower, for equity derivative futures.
- Equity Derivatives Options: For all option derivative trading, Share India charges ₹10.
- Call and Trade Charges: Share India enables its investors to call in and place trades with the help of a representative. The charge for this specialised service is ₹50.
- Additional Trading Charges: Apart from these important charges there are additional charges apart from brokerages which you would face while trading. These charges are different for different segments and here’s a list of these charges that you can incur
- Securities Transaction Tax(STT) / Commodity Transaction Tax (CTT):
- Stamp Duty
- GST
- SEBI turnover fees
- Stock exchange’s transaction charges with GST
- GST is levied on clearing charges levied by the clearing corporation or clearing member
- Dematerialisation charges
- Rematerialisation charges
- Charges for additional services
- Penalty for repaying the margin amount
Conclusion
Before opening a trading account, it’s essential to consider and compare various charges associated with it. Being aware of these charges allows you to calculate your trades, estimate potential returns, and make informed investment decisions. Share India offers the advantage of zero trading account opening charges and low trading fees. Start your investment journey today and explore the benefits of a zero brokerage trading account with Share India to save on high commissions.
