Demat Account, Which broker?

F

foruamit2004

Adept
Hi All,

I want to open a Demat account just for learning purpose(atleast for this year). I will be investing around 30k-40k initially. So what are the good options, as you see mostly I'll buy shares in the lot of 5k-15k.

************

What I know -

selling and buying stocks
short selling
(learnt from moneybhai.moneycontrol.com :tongue:)

************

The real problem is I'm having a great difficulty in understanding the various charges. Can somebody please explain these - (taking the example of RBS)

1) Account Opening
(Towards Stamp Paper Charges) Rs. 100/-

- Ok. self explanatory. :)

2) Annual Maintenance charges (AMC) Rs. 450/- per annum

- Ok. self explanatory. :)

3) Transactions Charges
Purchase (Market/ Off Market/ Inter Depository) Nil

- That means no charges when I buy shares online?
What is Off market/ Inter depository purchasing means here??
Sale (Market/ Off Market/Inter Depository) 0.04% (min Rs. 25/-) per instruction for Instructions submitted at Branches

That means even if I sell the stocks worth 500/- they will still charge 25/-?

[Instructions submitted at Branches] - any trick here? I'll buying/selling online. where is this branches comes from.

4) Custody charges Nil

What is custody charges?

5) Dematerialisation Fee Rs. 2.50/- per certificate

- Dematerialisation??:huh:

6) Rematerialisation Fee Rs. 20/- per certificate

- Rematerialisation??

7) Pledge Creation/Closure Transactions 0.04% (min Rs. 50/-) per instruction

what is it?? how it is different from point 3 (3 - Transaction charges)

8) Pledge Invocation Credit 0.04% (min Rs. 100/-) per instruction

No idea about this too :)

************

Any free services which provides SMS alert/ IM alert??

************

Other Questions -

1. Once I opened up an account can I trade in both nifty/BSE?
2. I have saving account in ABN AMRO, Though I would like to open a new saving account. I was thinking of opening a new saving account and demat account from ICICI. any other bank suggestion are welcome... :) SBI??

(P.S. very bored from current JOB, wanna sit at home and do the stuff :p )
Thanks
Amit.
 
i have religare, i find it to have the best brokerage rates when i opened it
u can link it to any bank account.
check out traderji website, ull get more inputs there
 
I applied in IndiaInfoline, onetime charge of Rs. 555, No annual maintenance.. But its been 2 weeks, my account is not opened yet..
 
foruamit2004 said:
Hi All,

I want to open a Demat account just for learning purpose(atleast for this year). I will be investing around 30k-40k initially. So what are the good options, as you see mostly I'll buy shares in the lot of 5k-15k.

************

What I know -

selling and buying stocks
short selling
(learnt from moneybhai.moneycontrol.com :tongue:)

************

The real problem is I'm having a great difficulty in understanding the various charges. Can somebody please explain these - (taking the example of RBS)

1) Account Opening
(Towards Stamp Paper Charges) Rs. 100/-

- Ok. self explanatory. :)

2) Annual Maintenance charges (AMC) Rs. 450/- per annum

- Ok. self explanatory. :)

3) Transactions Charges
Purchase (Market/ Off Market/ Inter Depository) Nil

- That means no charges when I buy shares online?

Transaction charges mean the charges that the DP bank will take when you sell a stock , it charges only when u sell , i.e it dont charge when you buy, its different then brokerage chrgs, this is taken by DP bank. better go with HDFC bank they are good and cheap.
What is Off market/ Inter depository purchasing means here??

off market means that you dont sell share on exchanges ,but transfer offline to some other persons DP account, like in your family members account without selling on exchanges.

Sale (Market/ Off Market/Inter Depository) 0.04% (min Rs. 25/-) per instruction for Instructions submitted at Branches

That means even if I sell the stocks worth 500/- they will still charge 25/-?

Yes , just like as I said above , it will charge Minimum 25 bucks irrespective of you sell Rs1 value share or Rs500/- with increase in value of sold shares the charges differ.

[Instructions submitted at Branches] - any trick here? I'll buying/selling online. where is this branches comes from.

4) Custody charges Nil

What is custody charges?

I dont think thats any use to you , so better not worry about it, its Bank's job.

5) Dematerialisation Fee Rs. 2.50/- per certificate

- Dematerialisation??:huh:

This means that if you have any physical shares then you can Demat it. i.e you can get rid of paper and get it online.
6) Rematerialisation Fee Rs. 20/- per certificate

- Rematerialisation??
vice-versa of above answer.

7) Pledge Creation/Closure Transactions 0.04% (min Rs. 50/-) per instruction

what is it?? how it is different from point 3 (3 - Transaction charges)
This is not for you, i.e this is used by ppl who take loans from banks, nbfc ,lenders so that they pledge their shares to them and avail loan on it.
8) Pledge Invocation Credit 0.04% (min Rs. 100/-) per instruction

No idea about this too :)

This means that when some1 pledges his shares to a lender , and if he defaults on his commitment then the lender in whose name is the shares pledged can invoke the shares and sell in market and recover the money via shares sell. this is not for you, so dont worry.
************

Any free services which provides SMS alert/ IM alert??

Stay away from such useless stuffs, use your mind, if such service providers knew/had such information or tip then they would need to give to any 1 ,they could make money themselves.
************

Other Questions -

1. Once I opened up an account can I trade in both nifty/BSE?
Only if you have opened ,1) Brokers account, 2) DP account, 3)Current/saving account.

2. I have saving account in ABN AMRO, Though I would like to open a new saving account. I was thinking of opening a new saving account and demat account from ICICI. any other bank suggestion are welcome... :) SBI??

think the best bank in this market is HDFC, you cant find any other bank so fast and smooth working anywhere else. No need to look any where else, open Saving and DP account here, you wont have to worry anything else.I
(P.S. very bored from current JOB, wanna sit at home and do the stuff :p )
Investing is different and trading is different , better dont mix both, else you will have nothing left with you. Trade with care, first have courage to lose money , then only you can make money.
Thanks
Amit.
Click to expand...

Answers are given above , please check and if you still need any info, then contact me anything.
 
go for HDFC

I am using it for 4+ yrs, it's good, simple and clear.

Problem is it's little bit slow, but for learning purpose it is good.

If you are salaried person then check with bank where your salary gets deposited, if they have this demat+trading service you might get few more benefits (like no maintenance charges for 2 yrs)
 
I would suggest ShareKhan, the interface is the best for online trading and the response of the support staff is also very good.

I am using Indiabulls, Religare, AnandRathi and Hdfc but I still think Sharekhan is the best.
 
Thanks everyone for the replies/links. This was a great help for me. Doing my own research for the time being. I can afford to loose the initial investment of 30k-40k as I'm totally aware of the risk involve, but I guess I'm lucky so probably won't be loosing much. :p

Some more question :) -

1. What is this per certificate charges? what is certificate here, one instruction?

2. Dematerialisation/Materialisation not require if I don't want anything physical?

3. what type of charge will that be if I want to transfer money from DP account to My bank account? Will it be like NEFT. (free or 5/- per transaction) ?

4 Any experience with RBS? seems like they are the one which I can open through my saving account (ABN AMRO)
 
foruamit2004 said:
Thanks everyone for the replies/links. This was a great help for me. Doing my own research for the time being. I can afford to loose the initial investment of 30k-40k as I'm totally aware of the risk involve, but I guess I'm lucky so probably won't be loosing much. :p

Some more question :) -

1. What is this per certificate charges? what is certificate here, one instruction?

2. Dematerialisation/Materialisation not require if I don't want anything physical?

3. what type of charge will that be if I want to transfer money from DP account to My bank account? Will it be like NEFT. (free or 5/- per transaction) ?

4 Any experience with RBS? seems like they are the one which I can open through my saving account (ABN AMRO)
Click to expand...

DEMaterialize /rematerialize is only important like

Say your family member has old shares which they bought in physical form now u want to make int electronic than its dematerialize....

ALso sometimes people wants to close their account but there should nt be a single share before closing so they ask for physical form so that they can pass on...but i guess now they dont allow for new companies u surely have to sell it or pass to other demat account

Money transfered from bank to demat or vice versa i guess is not charged

Suppose u keep around 5k to buy a particular share in demat and your trigger isnt reached your money will be transferred back to your bank account(thats what happen with my hdfc account)
 
I got that certificate thing..Thanks for answering other queries. :) ... Just gave a call to ABN AMRO..they will call me back with all the details.

sharekhan/reliancemoney is blocked in office :) , that has to considered too.
 
Tech_enthu said:
I would suggest ShareKhan, the interface is the best for online trading and the response of the support staff is also very good.

I am using Indiabulls, Religare, AnandRathi and Hdfc but I still think Sharekhan is the best.
Click to expand...

Sharekhan's website is down most of the times during the night.

Has anyone here used angel broking ??
 
just starting out

need inputs for icicidirect ?

the 3 in 1 thing

already have a savings ac there

so would it be useful to get a demat and trading account there itself ?
 
Hacker said:
Sharekhan's website is down most of the times during the night.
Click to expand...

It must be due to maintain. making the site ready to morning trade:)

Has anyone here used angel broking ??
Click to expand...

Yeah, I have a account there.Their service is good, they send weekly market updates to your place via mail so you always know what happening in the market.

But I like Sharekhan more

fockerunleashed said:
just starting out

need inputs for icicidirect ?

the 3 in 1 thing

already have a savings ac there

so would it be useful to get a demat and trading account there itself ?
Click to expand...

Avoid ICICI Direct. it has the highest brokerage charges and its reputation is also bad. check traderji or mouthshut for review.This might help you decide:

http://www.traderji.com/brokers-tra...vs-hdfc-vs-kotak-vs-indiabulls-vs-5paise.html
 
Gaurish said:
It must be due to maintain. making the site ready to morning trade:)

Yeah, I have a account there.Their service is good, they send weekly market updates to your place via mail so you always know what happening in the market.
Click to expand...

Gaurish can u trade into commodities with your main demat account or are their seperate charges...as i see its fused together into same account in demo on site @angel
 
RBS Trading Account -
Fee Head (for Resident Indian Customers) Charges
Account Opening Charges (One time) Rs. 800/-
Brokerage on Trades done in equities - Delivery Segment and Inter-settlement 0.50%
Brokerage on Trades done in Equities Margin segment 0.05%
Brokerage on Trades done in Derivatives
(only Futures) segment - Carry Forward 0.08%
Brokerage on Trades done in Derivatives
(only Futures) Segment - Intra-day square off 0.05% - minimum Rs. 50/- (per lot)
Brokerage on Options Contract Higher of 1% of premium or Rs. 50/- (per lot)

RBS Demat account -

Transaction Type Rate#
1) Account Opening
(Towards Stamp Paper Charges) Rs. 100/-
2) Annual Maintenance charges (AMC) Rs. 450/- per annum
3) Transactions Charges
Purchase (Market/ Off Market/ Inter Depository) Nil
Sale (Market/ Off Market/
Inter Depository) 0.04% (min Rs. 25/-) per instruction for Instructions submitted at Branches
4) Custody charges Nil
5) Dematerialisation Fee Rs. 2.50/- per certificate
6) Rematerialisation Fee Rs. 20/- per certificate
7) Pledge Creation/Closure Transactions 0.04% (min Rs. 50/-) per instruction
8) Pledge Invocation Credit 0.04% (min Rs. 100/-) per instruction

Please tell me the difference between those charges(In bold).

Are these rate competitive enough? lets say compare to sharekhan?
 
+1 for Sharekhan ...
Demat account will be opened for free ...
plus the rate which they have offered me is 2-10
2 paisa intraday
and 10 p for other ...
 
MAGNeT said:
Gaurish can u trade into commodities with your main demat account or are their seperate charges...as i see its fused together into same account in demo on site @angel
Click to expand...

AFAIK, you need a separate account but do reconfirm the same from your broker.
 
Can anyone explain me the difference between Trading Account and Demat Account ?

And from what I gather , Demat account is prerequisite for Trading Account. So else does Trading Account offer that Demat account doesn't ?

I am planning to venture into Trading/Investing primarily for learning purpose. But being a student I don't have that much capital, So any suggestions apart from Moneybhai...

I was thinking of opening a Demat account at Sharekhan (As it was recommened by several here). Also my friend recommened me to get an account at Local Broker due to very low prices.

Any inputs..?
 
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