If you are prepared to purchase bonds, stocks and other investments, then the first step you need to take is to open a brokerage account. In fact, once you are sure of trading with a particular broker, in case your bank has a trading account that you can trade with, a free broking account may be opened. Let’s see how you go about doing this.
In the event you want to start trading, your bank may offer you a free broking account. Alternatively, you can open broking account online on your own too, but a demat account will have to be opened with it. You can open a brokerage or broking account with a host of firms that are licensed to trade. There are stockbrokers that offer you complete or ‘full services’, and those that are affordable online brokers to choose from. Most brokers, especially savvy and reputable ones like Motilal Oswal, let you open an account online. Several firms may not even charge you a deposit. Nonetheless, with the best broker to open demat account and a trading account, you will have to place funds in the account in order to be ready to purchase investments. You can do this by making a bank transfer into your broking account or even make a cheque to the broker service.
The best stock broker to open demat account will be the one that you open a trading account with, ideally. Yet, in case your brokerage does not have facilities to open a demat account, you can still open just a trading account with a brokerage online. Nonetheless, you should know that you are the owner of any funds and investments that lie in your broking account, enabling you to sell your investments, whether commodities, stocks, bonds, etc, at any given time. In the same way, through a linked trading account, you can buy new investments and they will be stored for you in case you ever wish to sell them. Essentially, a brokerage keeps and maintains your account, representing an intermediary between investments you wish to purchase and yourself. You may own one brokerage account or more than one. Typically, there is no charge to open a brokerage account. A brokerage account makes profit in case you wish to avail of certain coaching services or as transaction fees when you buy or sell securities. A brokerage firm may also charge a stipulated fee for tips and advice and this makes ‘full-service’ brokerages expensive.
A free broking account can be opened with top-of-the-line brokers like Motilal Oswal, and you can open a demat account on the versatile platform that the firm offers too. You can avail of a good brokerage service and download the corresponding app to trade on the move as well.
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