How to invest in market

Status
Not open for further replies.
Renegade

Renegade

Staff member
Mastermind
Lets say that I want to invest in shares. Now I understand that I need to have a dmat account and some kinda ebroker account.

Well can someone kindly tell me all that is required (in as much detail as possible) to get started in the stock market. What all I require and everything to start buying/sellling.

I dont need investing tips or anything, just the process starting from scratch.

Also some comparison between ebrokrages would be welcome.

Remember it has to be online.
 
you can get a demat/brokerage account opened with ICICI/HDFC and get it linked with ur bank account (needs to be with the same bank)

That's all you need :)

I personally use ICICI direct, though i'd suggest HDFC as the ICICI servers are totally wasted....Placing a signle trade can take from 5-50 mins depending on ur luck
 
I'll suggest you to look no further than Kotak..they are highly reputed in this business and since i have some experience in this field..even i started a few days ago but i can tell for sure that Kotak is the best ebrokerage firm....i even enquired about sharekhan but i think it may not be as reliable..

My brother in law is a share market pro and i 'm telling you all this because this is what he told me..;)

Just approach your nearest Kotak center and they will give you requisite information about account types and all...there are basically three types of accounts provided and for starters, the gateway account is what you need..you need to have a security deposit of 20k atleast..

Btw, are you interested in Equity or mutual fund?

I'll suggest that you do a little research on the market first for atleast a month and then think about investing in a particular stock..i'm saying this because this is not the besttime to buy quality stocks as the prices are already touching the skies..but then again it all depends in which sector you want to invest..and whether your earning goals are long term or short term..

A lot of factors have to be considered, so tread cautiously.. :) Hope that info helps..

I wish you all the luck in your venture..!! :D

Edit: Renegade, sure Demat and Ebrokerage account are different but you do not need to worry as the firm which will handle your Ebrokerage, will provide you with a demat account as well..kotak provides you with the demat account as well..

One more reason for recommending Kotak is that other firms like ICICI are sort of jack of all trades..banking, insurance, investments etc..but Kotak concentrates on the stock market and utilizes all its resources in that direction..so they are quite good at what they do.. :)
 
Hey thanks for a long reply. :hap2:
CaaYoTee said:
Btw, are you interested in Equity or mutual fund?
Click to expand...
I dont need a dmat account for MF's. Anyway I am not interested in stocks as well. Wanted to invest in ETF just to get my feet wet.

CaaYoTee said:
Edit: Renegade, sure Demat and Ebrokerage account are different but you do not need to worry as the firm which will handle your Ebrokerage, will provide you with a demat account as well..
Click to expand...
No I was wondering the other way round, i.e. what if I get the demat first from my bank just as superczar suggested. Then what do I need to do.
 
i.e. what if I get the demat first from my bank just as superczar suggested. Then what do I need to do.
Click to expand...

Nothing, the demat+ e-brokerage come together...

you'll get your login credentials, and then u can trade away to glory....

However, be careful abt entyering the markets at this level....

However, having said that, keep in mind the fact that a lot of ppl (inclluding urs truly) exited the market at arnd 8K levels, only to regret later when the mkt went ~10K

Some analysts opine that this is just the beginning and the mkts are only gng to go up frm here, while there are naysayers, who believe the mkt is overinflated....

But all said & done, it'd still sugegst you to operate carefully as the coming few months are gng to see some volatility for sure
 
Wokay. Thanks for the info.
So HDFC? Is that a known problem with icicidirect and is HDFC any better or similar in terms of speed.
How would they compare if we ignore the speed/delay part.
 
How would they compare if we ignore the speed/delay part.
Click to expand...

You can't ignore that part...It's horible to say the least on ICICI...I opted for ICICI coz it allowed me to invest in MFs and IPOs online

and though u say that u can buy MFs offline too, nothng beats the convenience of dng thatthru ur trading acct...

But AFAIK, now HDFC too offers a lot of addl features including (maybe) MFs and IPO invetsments

Kotak too i have heard is good, but don't personaly know any1 who uses that
 
Ok, here's the process from scratch :)

You need a current/savings bank account with a depository participant(DP) account or demat account to start online trading. The savings/current account would be linked to your demat account for all your online trades, and would also function normally as any other current/savings account. You might be required to maintain a minimum balance.

Certain banks like Standard Chartered allow payment via their SCB credit cards too.

All the procedures, facilities and charges levied differ from bank to bank, it is better you contact the banks yourself and find out the details. This is just jist of what might be required and might differ from bank to bank -

Documents needed :

  • Registration form
  • Client agreement
  • Power of attorney
  • Bank and DP account opening forms
  • Application for Net Banking (demat accounts)
  • Photographs of all the account holders
  • Copy of passport or some other identification document viz: Voter’s ID card, PAN card, etc

Charges :

  • Account Opening charges
  • Bank charges - Might be required to maintain a minimum balance.
  • DP charges - DP will levy an annual maintenance charge as well as transaction charges for each trade.

Some links to help peeps,

http://www.icicibank.com/pfsuser/demat/demathome.htm

http://www.hdfcsec.com/

http://www.standardchartered.com/in/cb/accounts/demat.html

http://www.sharekhan.com/default.aspx

http://www.hsbc.co.in/in/personal/accounts/demataccount.htm

http://www.5paisa.com/

http://moneycontrol.com/

http://economictimes.indiatimes.com/articlelist/1257763725.cms
Click to expand...

Disclaimer : I have not done online trading :(
 
e-brokerage account :
a facility to you by your broker by which you can trade online.

demat account :
an account in your name with depository who keeps guard on your shares, in digital format.

for trading :

you can have only demat account:
service providers : all brokerage houses, banks, national stock holding corporation of india, your broker

cons : you have to wait for the delivery of scrips to your account and you may end up paying entry and exit charges on transfer of shares.

pros : your neighbourhood broker will do the deal as told by you. just a phone call away.

danger : your broker may misuse your funds, account, or default

second option is you can have demat and ebroking account :
pros : only one entity to deal with. you can have personalised portfolio management, you can have market tips, the deal is fast. some also have advantage of phone trading.

cons : if your or brokers IT system is compromised you can be at risk of fraud, you have to be carefull before clicking yes or deal.

only neg here is you have to pay them cash or cheque or by bank tansfer so you have to manage funds both ways.

third option: newer private banks of india offer everything in one.

you have banking account + demat account + trading account all in one. advantage only one window to encounter. some times economical too.

but it is likey that you may not get much personal attention if you are not HNWI (high net worth individual)

my preferance would be :

bank as first choice
trading with demat second choice
only demat with neighbour broker never

prior to i opened my trading account i surveyed with all the options

karvy, motilal oswal, 5 paisa, sharekhan and i found sharekhan best of them all and i am having an account with them for last one and half year. fully satisfied.

you have to search as they run some schemes at a given point of time so you may get extra benefits.

i would say avoid karvy

i also have banking option with hdfc bank.

kotak people are good with their tips,
icici is good in a way that you can do almost everything online but they are damn slow.
i have heard uti bank is also good. no experience just heard the things
 
Status
Not open for further replies.
Top Bottom