ByInitially, every investor has a question in their mind, “I want to open a Demat account, which company is best?”. Then they start searching on Google, YouTube, Bing, or any other search engine with the following searches,
- Which Demat account is best for long-term investment?
- Which is the best Demat and trading account?
- The best brokerage account is the best for beginners.
- Which share trading account is best?
If you are also interested in knowing which brokerage account is best for beginners, this article will guide you thoroughly.
Here we will cover everything from the long-term perspective. Such as,
- Security
- Speed
- Pricing
- Help and Support
- And other advanced features
With this, you will be getting the perfect investment brokerage account for your long-term needs.
Before getting to the actual content, you should know that there are two types of accounts you need to start your investment or trading.
That is Trading and Demat Account.
But no need to worry, these both accounts will be opened in one place in one go. You will be getting this detailed information at the bottom of this article.
Which brokerage account is best for beginners? – Straight answer
The abstract of this content lies with some brokerage accounts which are suitable for you that are,
- Upstox (Click to register) – Cheapest and best software interface across all the brokerage, overall this is the best brokerage account is the best for beginners.
These two are the most recommended accounts for your needs.
But, it will be worth reading the complete article to know the main reasons behind these.
Let us check each feature one by one.
Availability of trading segments
When you decide to trade in the Stock Market, you not only trade in company shares but also other segments such as commodities, currency, etc.
Every broker should have all the segments available on their software. In order to get all the segments available to trade, the broker should be a member of multiple exchanges.
Here is the list of all Exchanges and Segments available in it.
NSE (National Stock Exchange)
- Equity Shares
- Stock Derivatives (Stock Futures and Options)
- Currency Derivatives (Currency Futures and Options)
- Index Derivatives (Index Futures & Options)
- Debentures (Corporate Bonds)
- REIT
- InvIT
Mutual Funds
- Mutual Funds availability of Multiple AMC (Asset Management Companies) trusts.
BSE (Bombay Stock Exchange)
- Equity Shares
- Currency Derivatives (Currency Futures and Options)
- Debentures (Corporate Bonds)
- REIT
- InvIT
MCX (Multi Commodity Exchange)
- Energy Commodity
- Metal Commodity
- Agriculture Commodity
Pricing (Low)
Everyone wishes that in order to get maximum profits, our trading cost should be lowered.
There are many types of costs which include below.
- Brokerage Charges
- STT/CTT (Securities or Commodities Transaction Tax)
- SGST & CGST (Or single IGST for Interstate supply)
- SEBI Turnover Fee
- Exchange Clearing Charges
- Stamp Duty
- Transaction Charges
- Delivery Hosting Charges
- Additional cess and Other Charges
Some of these are the government of authority charges that we can not avoid, or reduce. But some charges such as Brokerage charges vary from broker to broker.
That simply means if you change the broker, your effective cost of trading also changed just due to a change in brokerage plans.
So, it is always recommended to choose any brokerage which is less than enough but balanced with the quality of service you expect.
So, Upstox is the perfect broker for you. Which has variable brokerage, which also has a capping limit for high-valued trades.
For example, assume Upstox has a 2.5% Brokerage up to Rs. 20 for Delivery Trades.
You have placed 2 orders which have the value of Rupees 300 and Rupees 10,000. Your brokerage calculation will be as follows,
- For an order value of Rs. 300 Brokerage will be only Rs. 7.5 because, 300 x 2.5% = Rs. 7.5 which is less than Rs. 20
- For an order value of Rs. 10,000, Brokerage will be applied only Rs. 20 because 10,000 x 2.5% = 250 which is greater than Rs. 20
If you are a beginner with a small investment, you will be charged less. But when you increase your investment, you will be capped at Rs. 20 only.
This is the real benefit for every type of investor.
Hence, this answers your question “Which is the best Demat and trading account?”.
For that matter, you can decide on the following account to pay less for brokerage.
Integration with 3rd party tools
In today’s modern days of trading, dealing with the market manually is quietly cumbersome and can be risky too.
Therefore, there are some tools used for investment as well as trading which help you to analyze, decide and trade or invest very quickly.
For long-term investment, the following tools are very helpful,
- #Smallcase
For trading purposes, traders can execute their trades within a fraction of a second to grow their profitability in highly volatile segments.
Those tools are as follows,
- Sensibull (For F&O Strategies & Portfolio)
- TradeTron (For Algo Trading) – Click to open A/c for FREE
If a broker is tied up with such advanced tools, it becomes easy to trade professionally.
You can enjoy 3rd party integration with the following broker(s),
Technical charts
In order to study price movement in any period of time, one can be to rely purely on technical analysis. That analysis needs proper technical charts having the following features.
- Superfast chart loading
- Multi Timeframe charts
- Wide Technical Indicators (Also known as studies)
- Drawing tools
- All device support
You will get all these features in the following broker account(s)
This could be the answer to your other question, “Which share trading account is best?”
Multi-Device login support
Some traders use multiple devices to study and trade.
We have seen many amid and professional traders who applied studies on Desktop screens and trade using Mobile phones or vice versa.
If your broker does not support multiple device login support, then it becomes hard to trade.
Nowadays, most brokers started supporting multi-device login features, but sometimes this feature undergoes technical glitches.
You will get this feature without any issues with the following broker(s).
Top in Security
No matter what broker you use, the main concern is security. We should be confident with the security that we trade should be only with us, there should not be any unauthorized trades on our account.
You can prefer any of the accounts below.
Timely customer service
In this section, you will get the answer to the question “Which Demat account is best for long-term investment?”
Especially in any service sector business, especially Financial Services, customers should be served one time.
Timely service is the main asset of the company. So, this should be an important priority while selecting a broker’s account.
I must say all these following accounts are good at customer service so that anyone feels happy after opening his account.
Speed
The most significant factor for trading is the speed of application software. It should work seamlessly without any issues of technical issues.
The software should manage the working of the application even if the internet is working at low bandwidth.
Here are the broker’s software programs you can choose to have the perfect balance between speed and features.
Call & Trade Facility
This facility is not so essential because all the brokers give this feature.
But nowadays, in modern days, we used to trade using a computer or mobile phone. But sometimes we need this feature in the following circumstances.
- There is a shortage of internet
- Internet speed is not enough to trade
- Technical Glitch
- When we have no smartphone
This feature is available to all brokers.
Pledge / Collateral Facility
This feature is used mainly by most experienced traders or investors. Who pledge their existing Equity Shares or Mutual Funds investments to create more free cash for trading in Futures and Options.
Let us understand in detail,
Suppose you have an investment of 1 Lac in Equity Shares or Mutual Funds. You have pledged all your investment towards collateral.
After suppose there is an exchange haircut of 20% (On average), then you can use Rs. 80,000 as Non-Cash Component.
That means, in order to take a position in Futures or Options, you can use this 80,000 with cash.
50% margin will be utilized from Cash and the remaining 50% margin will be used from the collateral’s non-cash margin.
LOW or NO maintenance cost
There are some brokers who charge more than Rs. 1000 per year in the name of Account Maintenance Charges.
But that becomes very hard for new investors who just started their investment journey.
So, it is recommended that the maintenance cost should not exceed more than Rs. 500 per year.
Following are the accounts that can be the best suitable for you.
Basket order facility
Sometimes time is the major constraint while trading. For example, if you are an “Option” trader, especially an option writer, you need to place multiple orders to enter into an option strategy position.
If you waste more time, the profitability of that position gets reduced. That is the major risk for options traders.
Hence, by using the Basket order facility, a trader, or investor can place multiple orders in one go. The trader can fire up to 100 orders within a fraction of a second.
This is a very useful facility that should be available to every broker.
The following broker will be helpful for you.
Complex Orders Facility
If one wanted to invest their money in shares or any other security, there is a simple order to buy. Conversely, if they wanted to get money back, they sell those shares with a simple sell order.
But there are some other scenarios when we require complex types of orders to be placed to traders faster and with controlled risk. Here are some complex orders, and their usage.
Cover Order (CO)
This order is used for Intraday trading. We place the entry price and Stop Loss price before entering into the order.
This order just provides us protection from big loss. When we are in profit, we need to exit manually as per our choice.
For example, you have bought 5 Quantities of SBI at Rs. 500 and kept a stop loss of 490. If you are in profit, we need to exit from the position.
But if the prices going an unfavorable direction, then it will get sold at Rs. 490, and you may incur a loss of Rs. 10 for each quantity.
Suitable for quick intraday traders, we are majorly concerned about protecting from big losses.
One Cancels Other (OCO) or Bracket Order (BO)
When we place this order, we need to set a target price, stop loss, and optionally trailing stop loss.
This order not only control loss but also help to reduce it by way of trailing stop loss.
When the market moves in our favorable direction, then the stop loss price gets changed towards our favorable side. Resulting in reduced risk. But trailing stop loss is optional.
One can avoid placing it if he wants to maintain strict stop loss.
When any of the Stop Loss or Target orders get executed, then either order gets canceled automatically.
For example,
You decided to buy 10 Shares of Infosys at Rs. 1500. You have a target of Rupees 50 Rupees upside and 30 Rupees downside and wish to trail Stop Loss with each move of Rupees 10 upward.
Then you will place order prices as below.
- Buy Price – 1500
- Stop Loss Gap – 30 (Only difference in Rupees)
- Target Gap – 50 (Only difference in Rupees)
- Optional Trailing Stop Loss – 200 Ticks (1 Rupee equals 20 ticks)
Watch the video shown below to know the order placement on the Upstox brokerage account.
After Market Order (AMO)
If you want to buy any company’s shares in tomorrow’s trading session. But you think that you can not have access to the internet, or you might not be available for the market.
Then this order will be helpful.
In this order, you can place orders during the off-market time. During this time period, you can place AMO orders. (Time given in 24-Hour format)
- 19:00 Hr to 00:00 Hr
- 04:00 Hr to 09:15 Hr
These time periods can be different from broker to broker.
Whatever orders we place using AMO orders during the off-market time, all those orders are kept secured with the broker’s server.
Then all those orders get transferred to the market when the next trading session starts.
Options Strategy Builder
This is the next-generation trading system, where short-term traders can trade safely by their view on the market.
Option Strategy builder is purely based on Futures and Options trading.
We just need to predict where the market shows a high possibility to go. Then the software suggests strategies we can use to earn money from it.
The main objective of options strategy builder is,
- Reduce the risk of loss
- Increase the probability of profit
- Creating consistency for the trader for making profits
This feature is available with the following broker(s).
Advisory Service
Beginner investors or traders wish to earn money from the stock market. But he can not analyze stocks, and it becomes difficult to make money. So, they seek advisory services.
But it is not recommended to get generalized advisory service.
Hope, this article “Which brokerage account is best for beginners?” helped you a lot why we have suggested Upstox for Cheaper and overall having good trading experience.
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