Online Trading
Online trading is basically trading via internet using online trading websites. You can buy and sell shares, stocks, mutual funds, IPO’s and other financial instruments through these websites or s/w tools, similar to how you do trading via an offline account. Online Trading overcomes the amount of paperwork & hassles to undergo while trading offline.
Few of the financial firms which provide online trading are:
- ICICI direct
- Kotak
- Reliance Money
- ShareKhan
- Geojit
- 5 Paisa
- IndiaBulls
Demat Account
Demat stands for Dematerialized account. It is similar to a bank account. A bank account is used to save your money where you can deposit or credit your money. Similarly demat account is a place where you deposit your shares. Any share you buy is deposited in your demat account.
If you want to trade, you need to open a trading account with a financial firm who will open a demat account along with trading account. You can buy and sell stocks using the trading account. Your stocks intern will be saved in your demat account.
Brokerage Firms
Here we provide you some useful information about few trading firms.
- Geojit
- IndiaBulls
- 5 Paisa
- Reliance Money
- ShareKhan
- ICICI direct
- Kotak
1) Geojit Online Trading:
- Account Opening Charge: They charge Rs.300 for opening demat/trading account
- Annual Maintenance Charge: They charge Rs.250 as annual maintenance fee.
- Brokerage: They charge 0.30% for online trading in intra day & delivery.
- They provide two platforms for trading:- Gold and Platinum platforms.
- Gold Platform: It is a browser based trading. This is suitable for small traders.
- Platinum Platform: It is a installable terminal based trading. This is suitable for big traders.
Pros:
- Can trade on both NSE & BSE.
- Their online trading system allows customers to get real-time quotes of the stocks, stock alerts, keeping track of the market by setting up your own market watch. SMS alerts, stock recommendations etc.
- You can trade offline, by calling their call center.
- Good customer care.
Cons:
- Website is slow.
- They charge Rs.300/month as brokerage. This is suitable for regular traders, else you end up paying Rs.300/month even if you do not trade.
Website: http://www.Geojit.com
2) Indiabulls Online Trading:
- Account Opening Charge: They charge Rs.200 for opening trading account and Rs.250 for demat account.
- Brokerage: They charge 0.5% brokerage, but this can be negotiated. This is less when compared to ICICI Direct, HDFC and Kotak.
- They charge a one time fee of Rs.750/- for the Java Software ‘power indiabulls’ through which you can trade stocks.
- You can book IPO’s online
- Online Fund transfer through HDFC, ICICI, Axis, IDBI bank.
Pros:
- ‘Power Indiabulls’ is a good software for trading.
- Provides good brokerage compared to other trading firms.
- They offer margin on your cash up to 4 times but should be careful, you can be charged for using more cash.
- Real site data streaming for Stock Updates.
Cons:
- You can trade only in NSE stocks through online. You should call your RM and buy BSE stocks through him.
- Sometimes your brokerage may change without updating you. You need to ensure with your RM about the brokerage charge you negotiated with them.
- Customer service is not good.
- Your RM may change frequently.
- Important features like the knowledge about your total value of your portfolio, stop loss trigger, alerts etc are not available.
Website: http://www.indiabulls.com
3) 5 Paisa Online Trading:
- Account Opening Charge: They charge Rs.500 for opening demat/trading account
- Brokerage: They charge 0.05% of brokerage + 0.20% on Delivery = 0.25% brokerage, and 0.07% on Intra-Day.
- Their website is not secure as ICICI direct and Indiabulls.
- They provide two types of online trading:
- Investor Terminal: This is suitable for low volume traders which is a web based terminal and has limited features.
- Trader Terminal: This is suitable for high volume traders, a s/w tool is provided for trading.
- Few of the features of Trader Terminal are as given below
- Fast execution of trade orders.
- You can set alerts for your stocks.
- Live streaming of share quotes.
- Get information about index, charts, research suggestion on market etc.
- You can create and customize your portfolios & watch lists.
- You will get a RM for your account.
Pros:
- Brokerage is less compared to few other firms.
- You can transfer your funds from leading banks like ICICI, Citi, Axis, HDFC banks etc.
- Trading in both NSE and BSE index.
Cons:
- The software provided for Trader terminal is a little slow.
- Customer service not great.
- You should be lucky to get a good RM.
- Investor Terminal does not provide charts facility.
- To invest in IPO and Mutual Funds, should go to this link http://www.indiainfoline.com/ipo. It is not convenient as in ICICI direct.
Website: http://www.5paisa.com
4) Reliance money Online Trading:
They provide a different way of online trading. They have the following packages. This includes the account opening and brokerages. You can recharge them after the validity time is over or the turnover validity is reached.
1) Access fee- Rs. 500
Validity Time of 2 months or Turnover validity of Rs. 1 crore, whichever is earlier
Turnover limit – Non-delivery turnover of Rs. 90 lac, Delivery turnover of Rs. 10 lac
2) Access fee- Rs. 1350
Validity Time of 6 months or Turnover validity of Rs. 3 cr., whichever is earlier
turnover limit- Non-delivery turnover of Rs. 2.7 cr., Delivery turnover of Rs. 30 lac
3) Access fee- Rs. 2500
Validity Time of 12 months or Turnover validity of Rs. 6 cr., whichever is earlier
Turnover limit- Non-delivery turnover of Rs. 5.4 cr., Delivery turnover of Rs. 60 lac
They will charge 1 paisa for every trade therefore no service tax on brokerage.
They charge Rs. 12 charge for each transaction when traded through call center
Pros:
- The website is accessed through “Security Token”, therefore it is very secured.
- Connectivity of the site is fast.
- Investment options like Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance are available in one account.
Cons:
- You cannot book trades offline.
- Bad Customer Service.
- Sometime after the validity period, you account it again recharged. You should ensure you account is not recharged without your permission.
- This is helpful for big investors, because of the low brokerage charge.
- If you are a small investor or not a regular investor (for eg: a software engineer who does transaction in few thousands only) you end up paying more access fee. If you go for the one year validity by paying 2500/year and if you don’t do enough transaction it is waste of money.
Website: www.RelianceMoney.com
5) ICICI direct
- Account Opening Charge: They charge Rs.750 for opening demat/trading account
- Annual Maintenance Charge: Rs.500+
- Brokerage: 0.75% on Delivery and 0.375% for Intraday Square off.
- Fund transfer from ICICI bank only.
Pros:
- You can trade in both BSE And NSE stock exchanges.
- You can invest online in IPOs, Mutual Funds, Bonds, commodities etc from the same account. All these features under one roof.
- The website is secure and safe. Shares are credit/debit on time. No mishandling of shares.
- Since the fund transfer is from ICICI bank, you can allot the cash for trading immediately.
- Stop loss trigger feature is available. This feature helps in reducing the losses.
- Stock scrips are available.
- You can know the total value of your portfolio.
Cons:
- Sometimes the website is slow. Especially when the stock market opens at 10:00 AM
- The brokerage is very high and cannot be negotiated.
- In the Order Book, if you want to modify the order, it takes some time to load the site.
- Takes some time when you have are buying and selling stocks.
Website: http://www.icicidirect.com
Brokerage: http://content.icicidirect.com/mailimages/feeschedule.htm
6) Share Khan Online Trading:
- Account Opening Charge: They charge Rs.750 for opening demat/trading account .
- Annual Maintenance Charge: One year free, Rs 300 from second year.
- Brokerage: They charge 0.5% brokerage.
- Trading in both BSE and NSE
- Bank account is integrated with online trading account for quick fund transfer.
- There are two types of account: ShareKhan Classic account and ShareKhan TradeTiger account.
- Few features of the ShareKhan Classic account are
- Suitable for Small investors
- Web-based trading account
- Real time streaming of share quotes
- Can book IPO’s
- Portfolio tracker to track your own portfolio
- Trade confirmation, digital contract notes by email
- Few features of the ShareKhan TradeTiger account are
- Sutiable for big investors who are serious traders
- Real time streaming of share quotes
- Provides advanced charting features
- Can book IPO’s and Mutual Funds.
- Screen based platform, similar to the one available at trading firms
- Fast access than web based account
- You can set your alerts to track stock prices
- Online fund transfer is available with 12 Banks
Pros:
- Good customer Service
- You can get SMS alerts, Email alerts about the stock prices and stock recommendations etc.
- You can transfer funds from most of the banks to your trading account.
- Brokerage is less
- They provide advanced charting facility.
Cons:
- The classic account holders cannot buy Mutual fund’s online and cannot trade in commodities.
Website: http://www.ShareKhan.com
7) Kotak Online Trading:
Kotak provides different account types for its customers.
Kotak Gateway account:
- This is suitable for beginners who want to start investing in equity markets.
- You can use the web based trading system or Call and Trade Facility for trading.
- Can also book IPO’s and buy Mutual Funds online.
- You can get research advice on buy/sell of stocks through SMS alerts.
- Brokerage: 0.59% Delivery & 0.06% both sides – intraday.
- Free market updates, and Research reports on the economy available.
- SMS alerts Rs.100/month.
- Call & Trade free for first 20 calls. From the 21st call, you need to pay Rs. 20/- per call.
Kotak High Trade account:
- This is suitable for intra-day traders.
- Auto-square off during the end of trading session.
- You can get research advice on buy/sell of stocks through SMS alerts.
- Free market updates, and Research reports on the economy available.
- Can also book IPO’s and buy Mutual Funds online.
- Brokerage: Upto 25 lakhs 0.06% both sides during Cash Squaring up.
- You can also get research reports on the economy, market movements etc.
- You get a desktop tool called as K.E.A.T Desktop, which makes trading easy.
- 6 times exposure on the margin.
Kotak Privilege Circle account:
This is similar to Kotak Gateway account except, you will get some special attention.
- This account provides privileged services and less brokerage for its customers.
- You will have a dedicated relationship manager from whom, you will get suggestions regarding the market.
- Can book IPO’s and buy Mutual Funds online
- 6 times exposure on the margin.
- Free market updates, and Research reports on the economy available.
- You can get research advice on buy/sell of stocks through SMS alerts.
- Low Brokerage rates – 0.59% Delivery & 0.06% both sides – intraday.
- You get a desktop tool called as K.E.A.T Premium, through which you can trade and get stock quotes.
Kotak Freeway account:
- This account provides the facility to trade unlimited for a fixed monthly fee of Rs.999/- per month and a fixed brokerage. This is suitable for frequent traders.
- 4 times exposure on the margin.
- You get a desktop tool called as K.E.A.T Desktop, through which you can trade easily and fast.
- You can get reseach advice on buy/sell of stocks through SMS alerts or through intraday calls.
- Free market updates, and Research reports on the economy available.
- Can also book IPO’s and buy Mutual Funds online.
- Brokerage: Fixed brokerage of Rs. 999/- per month plus 0.59% on delivery.
Kotak Flat account:
- A flat brokerage fee is charged per trade basis.
- Brokerage: 0.18% on delivery and 0.018% for Intraday.
- Fixed brokerage rate of Rs.9/- or Rs.20/- based on the trade facility you choose.
- No charges for Mutual Funds and IPO’s.
- Flat brokerage charge is applied only for Delivery and Intraday trades and Future and Options.
- Free market updates, and Research reports on the economy available.
- You can get research advice on buy/sell of stocks through SMS alerts
Kotak Assist account:
- This feature provides a complete assistance on your financial investment.
- Assistance will be given to you as to how to invest in IPO’s, Equity, Mutual Funds etc based on the market research.
Pros:
- They have different options for account opening. You can choose any account based on your interest.
- Good customer service
- They provide SMS alerts, research advice on market.
- Call an trade facility.
Cons:
- The connectivity may be slow some times. This will be frustrating a bit while trading.
- Brokerage of 0.6% cannot be negotiated and is a bit high.
Website: http://www.kotaksecurities.com/accountsection/index.html
[...] More here: Online Trading, Demat Account and Brokerage Firms [...]
I would like to know what is maximum transaction limit in various kotak accounts such as:
Auto Invest
Kotak Flat
Kotak Super Saver Flat
Kotak Gateway
Kotak Privilege Circle
Kotak High Trader
Kotak Assist
Kotak Freeway
Kotak Freedom
if my demat acount has shares worth 1 lac, what is maximum debit I can have in trade in a day / week. what is maximum amount per transaction i can have……
Please comment
Is a very good site .
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As of June 30, 2008, there were 45 mutual funds and eleven exchange- traded funds (ETFs) in this category. — Currency: These funds invest in US and foreign……
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Really good mate. Also I??ve bookmarked this blog. This blog is very useful for me.
thx……its really a needful information for beginners
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Useful information, and i would also like to add that i have been using reliance money for quite some time and also geojit. both have been quite good.
Of all the online platforms I tried, reliance money has been okay.
can some one tell me about gold trading how it is done and what is sorting in this trading
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