Do you want to get into the trade? If yes, then start your journey now by knowing how to open NSE account.
An account with one of the major stock exchanges of India like NSE improves your knowledge and helps you in becoming a confident investor.
Either of the stock exchanges NSE, BSE, MCX or NCDEX is regulated by the SEBI, Securities and Exchange Board of India.
So if you want to start investing by getting into the trade in the stock market than you have to look for the broker registered with the regulatory body of India.
NSE Demat Account
If you are a beginner as an investor then to get into the trade in the stock market by getting yourself registered under any of the stockbrokers (full-service or discount broker). These brokers are involved in assisting you and doing investment on your behalf.
Here it becomes important to look forward to the broker who is registered with SEBI and listed in NSE.
Since there are many brokers listed in NSE, the choice of broker plays a crucial role to move ahead in the trading journey and to open NSE account. Here are a few important factors you must consider for picking the right broker.
Full-service brokers are those which not only provide a trading platform to their clients but also assist them with other services like advisory services, etc.
The brokerages charged by full-service brokers are higher as compared to the discount brokers. There are some full-service brokers which are a part of a larger banking group.
Individuals can open a 3-in-1 account with them. The three services provided under 1 account are demat services, trading service, and banking services.
All these services can be availed by opening a combined 3-in-1 account with them. These types of accounts are the most convenient for their clients, especially the investors who are just beginners or need more services than just trading platforms.
Discount brokers are those brokers that provide only the trading platforms to their clients. No advisory or extra services are provided by them. Individuals can open a 2-in-1 account with them.
A 2-in-1 account means demat services and trading services combined under 1 account. Since they do not provide any additional services, they charge a little less from their clients as compared to the full-service brokers.
As we discussed above, there is a wide range of services provided by full-service brokers in comparison with a discount broker. If you are a first-time investor, you might be more interested in getting some kind of guidance from your broker.
Fundamental analysis is done based on the overall quality of a company which includes factors like past financial performance, quality of the management of the company, future plans, overall health of the sector of the company, etc.
This analysis is beneficial for investors who want to invest in stocks for medium to long term.
Good brokers also provide their clients with the technical analysis of stocks that helps you in making the right investment decision. This analysis is done based on previous trends of the stock price and the volumes in which trading occurs in a particular stock.
NSE Account Opening Charges
Brokers charge different kinds of fees from their clients for their services. These costs and charges include account opening fee, annual maintenance fee, brokerages for trades across all the segments, additional fees for other services like call and trade, etc.
Some taxes are levied on every transaction that an individual makes across any of the segments. For example, STT (Securities Transaction Tax, GST, SEBI charges, etc.)
These taxes need to be paid by investors irrespective of the broker they open their account with.
When you open NSE account with the broker listed with the exchange you would be able to reap the advantage of using different trading platforms. To make the right broker choice analyze the trading platforms and applications that the broker offers for FREE to its customer.
Look into the features of the app, know about the reviews, speed and overall performance by checking the reviews given by the existing users.
This is another important factor that needs to be kept in mind while deciding a broker. There are different ways of getting a query resolved with the brokers.
The reviews about customer support should also be checked to understand the quality of customer care services provided by any broker.
Next comes the types of accounts. For doing investment, it is essential to have a demat and trading account.
Demat Accountis what you need to buy or sell shares. You can keep your bought shares securely in the demat account. On the other hand, there is a trading account that works as a bridge between your demat and bank account.
So, in simple terms, a trading account is where you keep cash while the demat account is useful to hold your shares in electronic form.
Here, it is essential to open both these account with the same stockbroker. However, if the broker does not have the facility to open the Demat Account then you can open your own.
How to Open NSE Trading Account?
To open the NSE account once you are done with the choice of the broker on the basis of points discussed above, next select the mode online or offline process to open NSE account.
Most of the broker provides the provision for the complete paperless process to open the demat account.
The paperless process of opening the account saves your time and gives you the real-time account information. Along with this, it prevents hacking of useful and confidential information.
Also, the instant paperless process opens account instantly thus offering you the benefit of initiating trade without delay.
For either of the process, it is important to sort some essential documents for demat account like identity proof, address proof, and other documents like bank passbook, canceled cheque, etc.
These documents are used to verify the information entered by you and to know about the financial status.
How to Open NSE Account Online?
To open the demat account, visit the website of the stockbroker. There click on the link “Open Demat Account”.
The link redirects you to a new window where you can proceed further with the account opening process by following the steps.
The general steps involved in opening the demat account are:
Enter your name, mobile number, email address.
Submit your details.
An OTP is sent to your mobile number ending up the registration process.
Now proceed further by entering the details of the document like Aadhaar number, PAN card number, bank details (account number, and IFSC code)
Following this, upload all the documents along with the canceled cheque to prove your bank details and a passport size photograph.
Once done, the broker offers you the trading segment option in which you can select the segment in which you want to initiate trade.
Pay the charges applicable. Most of the stockbroker offers the Free Demat Account.
Once done the account details are sent to your email address.
Now open a Demat Account for Free!
NSE Demat Account Login
After ending up the process to open NSE account, the broker’s team carries out the in-person verification in which executives of the broker do the verification of the prospective client.
This can be done either by visiting the address of the person or through an online meeting.
On complete verification all the details and send you the confirmation by sending the login credentials to your email address.
The login details consist of the User ID and Password.
You can log in to your account and can reset your password at your convenience.
It is recommended to keep the login information private and confidential. For security reasons, this information should not be shared with anyone and the account needs to be logged off from whenever the work is done.
Passwords should never be saved on the devices, especially if the device is shared with some other individual.
NSE Demat Account Charges
As already discussed, most of the broker does not charge any fees for opening a demat account. Thus, you can avail of the facility to open NSE Account (Demat and Trading Account) for Free.
Other than the account opening charges, there are annual maintenance charges commonly known as AMC charges that are charged annually to keep your account activated.
The annual maintenance charges vary from broker to broker and generally range from ₹300-₹500 per year.
DP charges are also applicable to the Demat Account. These charges again vary from broker to broker.
DP charges are charged by the CDSL or NSDL whenever you sell your shares from your demat account. These charges are actual sources for the depositories and their participants.
These charges do not appear on the contract note, and therefore it is essential to ask your broker before opening an account with them.
NSE Account Opening Benefits
If you want to open NSE account you would be able to come across various avenues where an individual’s money can be invested. Some of the segments in which one’s money can be invested after he or she open NSE account are as follows –
Equity – Under equity segments, investors can invest their money in stocks of different companies, close-ended mutual funds, ETFs, etc.
Derivatives – Under this segment, individuals can trade in derivative contracts. These contracts can be made on stocks or indices or commodities as well as currency.
Fixed income and debt – This segment include different kinds of bonds and debt-related instruments.
NSE Account Opening Disadvantages
Opening a demat account with any of the stockbrokers listed with NSE has some drawbacks too. Some of them are discussed here.
High Annual Maintenance Charges: AMC charges apply to your demat account even if you are not using it or having a single share in your demat account.
Hi-Tech Services: Most of the brokers have now opted for the electronic mode for carrying out trade. This makes it compulsory for investors to use smartphones or computers to trade in the share market.
Additional Contract: Many stockbrokers provide additional contracts at a different level that is sometimes complex to understand thus bringing challenges in front of the trader.
If you want to earn a good return on your investment, you need to enter the world of financial instruments related to the stock market.
For this, an individual needs to open NSE account with any of the registered brokers. The procedure for opening an account is quite simple and can be completed in a few days.
Before opening an account, a broker should be chosen carefully that meets your specific requirements and expectations.
After the account opening, a good financial strategy should be devised based on knowledge about different segments, the amount of money to be invested, financial obligations, and the risk-taking ability of the investor.