DETAILED INFORMATION ON DEMAT AND TRADING ACCOUNTS | WHAT IS DEMAT ACCOUNTS? BEST BROKER FOR DEMAT AND TRADING ACCOUNTS | How to open a Demat Account? | Brokers' Charges & Earning| Investerguider.com
1. DETAILED INFORMATION ON DEMAT AND TRADING ACCOUNTS: -
* WHAT IS DEMAT ACCOUNTS & TRADING ACCOUNTS?
-After 1996, the National Stock Exchange NSE) changed the scene when it introduced the demat. Now, demat means dematerialisation. It is a short form of dematerialisation, and it means that if you have a demat account, then you will not require paperwork. And you must have heard that in old times, people had shares in the values in the form of paper, which means people used to have paper and that was shares, and they have value and they have a price. When the demat form is brought, it means everything will be online and everything will be happen through depository and what is depository means ,it means that when you buy shares and heard the broker is involved but broker is only a medium ,a channel.shares are submitted on depotory and there are two main depository in India,CDSL AND NSDL.so the shares you buy will remian safe , suppose thaey are in the vaults.so when you open demat account,then along with it your trading account gets automatically opened. You can trade and you can do intraday trading, and you can also do commodity trading, and you
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| DETAILED INFORMATION ON DEMAT AND TRADING ACCOUNTS | WHAT IS DEMAT ACCOUNTS? BEST BROKER FOR DEMAT AND TRADING ACCOUNTS | How to open a Demat Account? | Investerguider.com |
BEST BROKER FOR DEMAT AND TRADING ACCOUNTS:-
YOU WILL HAVE THREE TYPES OF BROKERS:
BANK
-you firstly thast your saving account will open and demat account will open and demat account will open with it and with the demat account your trading account will also open and banks comparatively charge more brokerage then you can consider and you can avoid too.
FULL SERVICES
You get three things generally in the full services, one you get is RM.
1. RM means RELATIONSHIP MANAGERS. You will get a relationship manager who, when you encounter any problem or any challenge in trading or in investing then this person helps you.
2. You get to call and trade, which means you can trade by calling.
3. You also get provided with tips and recommendations here sometimes, and those are very general tips.
DISCOUNT BROKER
-DISCOUNT BROKER does not give you all these things which are provided by full-service brokers, but has a full team of customer support so if ever yoyu face any issue then you can also call custromer support and no need to pay RM charges.
Brokers' Charges & Earning
Brokers take less money, but some brokers charge zero for account opening, and the biggest earning of brokers is the AMC, which means annual maintenance charges.
The third thing that comes is brokerage. Brokerage is the lowest for the discount broker If brokerage fees matter, & you don't want to pay that, then choose discount brokers.
DISCOUNT BROKERS NAME:
- UPSTOX
- 5PAISA
- PAYTM,
How to open a Demat Account?
1. ESSENTIAL REQUIREMENTS: (REGULAR DEMAT ACCOUNT)
- Indian citizen
- age 18
- ID proof -PAN card (photo and signature should be clear)
- Address proof-(Aadhar card,voter id card,driving license/passport)
- Income or bank proof(for currency trade)
- 6-month bank statement
- Signature(sign on blank paper and save that photo in your safe place)
- Mobile number and email
DIFFERENCE BETWEEN CURRENCY TRADE AND STOCK TRADE:
-CURRENCY TRADE IS ALSO KNOWN AS FOREX TRADE
FOREX TRADE:
- It opens from Monday to Friday. It opens for 24 hours.
- The risk levels are different than those of the stock market.
- Ideal for technical analysis
- Spreads are smaller
- Trade over OTC(OVER THE COUNTER)
- FOREX TRADING BENFITS:
- *LEVERAGE
- *LOW TRANSACTION COST
- prefer for quick return
- Start trading with less capital, the reason is because of leverage.
Advice for New Traders
Many new traders think that if they have big capital, then they will make a good amount of ROI, but it's a myth.
If you can't control your small capital, then how can you able to control big amount of capital?
So, for good emotional control and good psychology, you have to start with a small amount.
Start with a small amount of capital, then increase when you can control your emotions. Because emotional trading can blow your account easily in one trade. So first, control your emotions in trade.
A trader has to first learn how to save small capital. Then only he can save the big capital.
A trader has their only weapon is their capital. So, first, save their capital in the market.
Trading is very easy to learn, but controlling emotions makes it hard.
You don't need time for learning, but you need time to control your emotions.
S,o focus on controlling emotion and psychology.
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