Almost every process in this world carries a cost, and investing in the securities market is no different. Every time you buy or sell securities in the market, you have to pay a part of the transaction cost as brokerage fee. This fee increases your overall cost of investing, and reduces the profit made (if any) on the transaction. However, with free brokerage accounts for free trading in India, you can drastically reduce your cost of investing. In this article, we shall delve into
- Meaning of free brokerage accounts for free trading in India
- Advantages of zero brokerage demat accounts
- Steps to open a zero brokerage demat account
What Is Meant by a Demat Account with Zero Brokerage
Let us begin by discussing what is a demat account with zero brokerage. A free brokerage account for free trading in India is a type of demat and trading account in which the account holder is not required to pay the brokerage fees for each buy and sell order placed in the market (the terms of different accounts offered by different brokers may vary). In the conventional brokerage model, either a percentage of the total transaction cost or a flat fee is charged for each order. Zero brokerage demat accounts, however, entail no such fee.
Prominent Benefits of a Zero Brokerage Demat Account
There are several benefits of a free brokerage account for free trading in India. Let us discuss the prominent benefits.
- Reduced cost of investing: When you opt for a free demat account with zero brokerage, you save significantly in terms of waiver of transaction costs. If your demat account’s other charges, for instance, Annual Maintenance Charges, are also waived, the cost of investing falls even further.
- Ability to place more orders: With the cost savings resulting from zero brokerage demat accounts, you can place more orders in the market with the same investment amount. For instance, if you save ₹1,000 in transaction cost (by way of waiver of brokerage fee) and ₹700 in Annual Maintenance Charges (waiver), you can invest ₹1,700 more in the market without incurring additional investment expenses.
- High degree of transparency: With free brokerage accounts for free trading in India, the pricing structure is fairly transparent, and you need not worry about the computation of brokerage fee for each transaction (since it is waived).
Steps to open a Zero Brokerage Demat Account
Opening a zero brokerage demat account is a fairly straightforward process. All you have to do is follow the steps mentioned below.
- Carry out some research to shortlist credible stock brokers offering free brokerage accounts for free trading in India.
- Peruse the features of various zero brokerage demat accounts and evaluate the trading platform of the stock broker.
- Decide whether you wish to opt for a free demat account in addition to a zero brokerage demat account.
- Select the zero brokerage demat account you wish to open.
- Complete the online account opening form at the selected broker’s website.
- Submit the documents for demat account opening.
- Complete the step of In-person Verification through video KYC.
- Wait for the processing of your free demat account application.
- Log in to your zero brokerage demat account.
- Add funds to the account and start investing in the market.
The Bottomline
You can choose from several stock brokers offering free brokerage accounts for free trading in India. It is important to go through the account features, trading platform, cost structure, and other terms and conditions before selecting your free demat account.
Read Also: Spend More Time Before Opening Zero Brokerage Trading Account
