Lowest Brokerage Charges Demat Account | Image Resource: freepik.com

Demat account is used to store the shares when you trade online. To trade online you need a demat and a trading account. The transaction with the exchange are done through the trading account and the demat account is used to store the shares.

 

The demat account is opened at the depositories. The depositories matain all the demat accounts. The trading account is held by the broker. You can open demat account by approaching a broker who offers depository services.

 

To open the demat account you have to fill and submit the account opening form along with the required documents. The account is available to you within three working days. There is a charge for opening the demat account. Once you get the account you can trade online in equity, currency, futures and options and commodity. You have to pay brokerage and maintenance charge for the demat account.

 

There are different brokerage plans available with the broker. You can choose the lowest brokerage charges demat account when you start. As you learn how to trade you can take the brokerage plan that suits your trading needs.

 

Brokerage plans

The different brokerage plans offered by an online broker are as follows:

This plan is suitable for traders with less volume. The brokerage is less than one paise and Rs. 7 per lot. It offers intraday exposure upto 30x on equities, 7x in futures and options, 3x on currency and 6x on commodities. You can get margin against shares. There is no minimum commitment. It is best suited plan if you want to trade in small volumes and save on heavy brokerage.

 

This plan is ideal for trades with lesser frequency but bigger trade size. The brokerage is Rs. 15 per executed order regardless of the size of the trade. It offers intraday exposure upto 30x on equities, 7x in futures and options, 3x on currency and 6x on commodities. You get margin against shares which is a value added service. There is no minimum commitment. This plan is best suited if you want to trade a few times but mainly invest to get returns.

 

When you trade online you should follow a few rules. Always do research before investing in any stocks and also find the risk associated with it.  Check the charges required to be paid before choosing an online broker. You should have patience and take the right decisions.