Best Demat Account in India? - YouTube

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Namaskar, my name is Mukul and welcome to asset Yogi.

Friends today's video is a special

Today Gaurav Kumar is with us.

And he is an investment advisor, And today we are going to talk about

where should we open our Demat account and trading account

Many of you subscribers ask me to make a series on stock investments.

How do we get started with Stock Investing?

So this is our first video of this series.

Stock investing begins with opening trading and a Demat account.

I know Gaurav for many years, he has worked in many banks.

And he has operated many trading accounts.

He has done more than I have,

so I thought that he can share his experiences better than me.

And we will know from him where we should open Demat and trading accounts.

I have also recently moved my Trading account.

From one stockbroker to another stockbroker

And what I have seen, we are going to discuss all these things in this video today.

So Gaurav please tell me on which parameters we should choose a Stockbroking account.

Look, broadly there are the four parameters.

First of all, safety

You should know how safe the broker is.

Because you are giving your money or you will you trade through it,

The second would be the user interface.

Because of how easy it is to trade or how difficult it is to trade.

Correct because in today's date, we use phones.

So I think the first thing we see is the user interface.

Right, and third is ofcourse charges.

Because that makes difference to your pocket

Who is charging more and who is charging less.

Charges mean brokerage charges, account opening charges.

Right, and lastly the features.

What are the extra features each broker is providing you for trading?

Like additional

Like some are giving stock tips, -Absolutely

Or the technology is better than anyone. -Absolutely

So we are going to see these four parameters in detail.

So Stay tuned to this video.

Music

First of all, let us try to understand what is a Demat account and trading account

We all already have a savings account in the bank

Now suppose we want to invest in stocks.

So for that, we need a Demat account and trading account.

In earlier times, you had to bid physically to invest in the stock

Whoever had to buy a share, he used to bid by raising his hands.

So the same process is now online

So this bid is now done from the trading account.

So your cash goes into the trading account.

From there you place your bid.

You get the shares and they get credited to your account

In which account you get the shares?

Shares get credited in Demat account

Earlier when you used to do the transaction,

You used to get the share certificate in physical form.

The share certificate has now been dematerialized.

We call dematerialized as Demat in short

So all your purchased shares are credited to your Demat account.

We understand this with an example We understand this graphically.

Suppose you have opened a savings account.

I assume you have a savings account with ICICI Bank.

And let say you want to buy some shares.

Let's say you have 2.5 lakh rupees in your savings account.

And now out of these, you want to trade one lakh.

One lakh you want to dedicate.

I am keeping this one lakh for trading, for investing in stocks.

So first of all you will open a trading account.

A trading account and Demat account can be opened simultaneously.

Now I will assume that you have opened an account.

Now let's say out of 2.5 lakhs, one lakh is transferred to the trading account.

Now you have ₹ 100000 in your trading account

₹ 100000 will be deducted from the savings account.

You have 1.5 lakh rupees left in your savings account

Now beyond the trading account, you need

See, your cash balance in the trading account.

Now suppose from this you want to buy shares of ₹ 50000.

Here I am writing, you bought shares of ₹50000.

So these shares of ₹50000 will come in your Demat account.

And let's say, there is a brokerage of ₹ 50.

So how much money is left in your trading account?

You bought shares for 50000 and ₹ 50 is your brokerage.

then ₹ 50050 will be deducted

So 49950 is left in the trading account.

So your balance in the trading account is 49950.

With 49950 you can buy more shares in the future.

50000 shares have already been credited to your Demat account

Your cash balance remains in the trading account

From it, you can buy more shares.

All the shares you buy will come in the Demat account.

and we call it Demat account

Now let us talk brokers and how many types of brokers are

One is your bank brokers, Where you have a savings account.

Suppose your savings account is in ICICI.

And you have opened your Demat and trading account in ICICI Securities itself

So we will call it Bank Brokers

And like ICICI, Axis, HDFC and Kotak Bank

They also make trading and Demat accounts So we will call them bank brokers.

Which allows you to open all three seamless accounts in one place.

Other types of brokers also have two categories, first is a full-service broker

And second is discount brokers.

Who opens your trading and Demat accounts

Both the accounts are opened simultaneously.

Sharekhan, Angel Karvy, Motilal Oswal are examples of full service.

And Zerodha is an example of discount brokers

What features do they have?

And what are their advantages and disadvantages

we will talk about that soon

We will go to Gaurav

Before that let me explain to you one more concept

When you invest in shares, ie you are doing it for longer-term

You are not trading daily so we will call it investing

It's settlement suppose you bought shares today,

It arrives in your Demat account after 2 days So whenever you trade or invest

Suppose if you are buying for a long term, So do not think that if you have bought shares

then it should immediately reflect in your Demat account.

so we call it settlement-T+2 Days Delivery So your delivery will be after 2 days

And the second thing is intraday trading in which you have to buy and sell in a single day

Let say bought in the morning and sold in the evening.

We will call it intraday trading.

What are the advantages of which broker let us know from Gaurav

Now if we compare them on the 4 parameters we discussed in the introduction.

Now if we want to compare these three brokers Let say If we talk about safety

So which broker has more safety

Look when you say safety more or less all of them are regulated by SEBI

NSE and BSE all these brokers I would say they are all safe

This means those small brokers should not bust

if you are investing money then the broker should not be too small.

At least it should be a reputed broker.

It must be handling a good number of transactions.

So I think he would care about his reputation also

Right

After that, if we talk about the second parameter that is the user interface.

So now explain to me which user interface is good either Bank Brokerages is good

Full-service broker or discount brokers is good

See User Interface, I have used all,

Bank brokers have started early but

Its technology up-gradation is not so good.

But the discount brokers, Zerodha its interfaces definitely

I would say it's one of the best in the industry at the moment

So what rating would you give?

If you put all three in separate brackets then

So I would say 5 on 5 to Zerodha or discount broker

4 on 5 to a full-service broker

And 3 to bank broker

Does its Interface matter for users?

It matters for new users

If someone is already using something,

then he is used to it so for him, it may not matter that much

we talked about user interface

If we talk about the charges, then what are the charges in these three?

Correct

Charges according to me are highest in bank brokers.

There you can't even negotiate much.

I would say on delivery when you buy shares So they charge almost 0.5 -0. 4%.

and AMC is also comparable

The annual charges are also comparable between full-service brokers and bank brokers

Whereas discount brokers the charges are very less

Zerodha does not charge for delivery.

This means when we invest in shares

so you are saying its charges are zero.

But in other things, if you are doing intraday trading

So they have some fixed charges in it.

As far as I know, ₹20 is their flat charge.

Whether you trade one lakh, whether you trade 10 lakhs or you trade one crore.

I think on a single transaction it is flat free of Rs20

And what are the charges of full-service brokers ?

Around 0.2% or 0.25%

So even there it is being charged in percentage.

Yes, but it is a negotiation based on volumes

If you are trading or investing in large volumes,

So they can offer you better.

Ok, We talked about three parameters

Now finally let's talk about the features

Like there are some special features in bank brokers

there are some special features in full-service brokers

And there are some special features in discount brokers

we talk a little bit about that too

Absolutely, See the bank brokers have their bank account

So they can offer you something called 3 in 1 account

So you have a savings account with the bank

And you also have a Demat account and trading account with the bank.

And as far as full-service brokers and discount brokers are concerned,

They create both Demat accounts and trading accounts together.

But the bank account from where you will invest money,

you will have to open it in the bank itself.

Which then gets linked to the trading account

So do they provide extra benefits?

Like stock tips or you can trade over the phone. I have seen

I had an account with a full-service provider earlier.

They allowed me to trade on the phone too.

Yes, of course, you can book trades on call in full-service brokers or even in bank brokers.

And they also send some stock tips.

Are they beneficial?

You invest a lot in stocks and advice too

They give stock tips and stock research but You should buy stocks wisely.

Yes, I also believe that you should not buy stocks on the advice of anyone.

We keep talking about this in our videos as well.

If you are investing in stocks, then your studies are essential.

Doing your own research is essential.

You shouldn't buy any stock with just one stock tip.

If we talk about discount brokers, then what are the special features of it?

See, Zerodha is the biggest one among discount brokers

It also gives a lot of analytical tools, which is very unique.

For example, if you want to learn technical analysis

So there's a lot of tools in that.

At the same time, it also gives you a platform to buy other products.

Like if you want to buy direct mutual funds

So they have a separate app

Where you can buy mutual funds

I had also seen a product of Small Case there.

Yes, there is basically a thematic investment in a small case.

There you can choose any one theme,

For example, if you think that it is going to improve the infrastructure of the country.

So through the small case, you can do thematic investment.

ok so you want to say that discount brokers are mainly technology play

So they are focusing more on technology.

they focus on volumes to get more trade. -Correct.

Operating low margin. -correct

So overall if we say then where should we open an account

See if you want to trade on your own.

so I would say, discount brokers. -okay

If you want support from brokers.

In terms of research in terms of trading

So you can also go to full-service brokers.

If you do not want to open a new account,

If you have an existing account let say in HDFC or Axis Bank you can open there also

Yes but it comes at a cost, at quite premium

I think it's very expensive

Yes of course in terms of charges banks have high charges.

I would also like to share my personal experience with you

I have recently moved from a full-service broker to a discount broker.

I have opened my account in ZERODHA

I like its experience, and the charges are very less

That's a good thing, also the user interface is very good of Zerodha.

So I would recommend if you want to do stock investing

So you should open an account in Zerodha.

You will find the link in the description below

Go there and enter your basic details. Account opening is also very easy.

Just enter your name, number and email

The Zerodha team will contact you and will get your KYC done.

Apart from this, you can also upload all the copies online for E-KYC

And once you got KYC done,

So you do not have to do KYC again and again for different things.

If you also invest in mutual funds through Zerodha.

So you do not have to do KYC again and again.

All you have to do is send a physical copy of power of attorney once by courier.

The team will guide you for that too there will be no problem with that either.

Account opening charges are also very less here.

The brokerage charges are also very less here.

Annual charges are also very less. I have compared it to all other trading accounts.

We will continue the stock investment series

I will also do a video on how we have to open an online account.

We will also talk about how we can buy and sell inside Zerodha

And how you should select stocks, we will talk about Fundamental analysis

and we will talk about Finance ratios.

So stay tuned to our investing series.

If you liked this video then please like and share it.

If you have any suggestions related to this video or related to this channel,

then you can tell in the comment section below.

You can also check Gaurav's website

He has an advisory firm named Aarnavitt. You must check that too.

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Till then, keep learning and keep earning and be happy as always.