Can I do stock trading in India without a broker?

Short Answer

To buy and sell stocks in the Indian stock market, you will need a demat and trading account. A stockbroker is necessary to trade stocks because the broker will provide the trading account through which you will place your trades.

Detailed Answer

What is stock trading?

Stock trading is merely buying and selling stocks in order to gain from the difference. Stock trading requires a Demat account from which you will place the buy and sell orders. Trading involves a wide range of techniques such as swing trading, intraday trading, options trading, futures trading, etc. Different traders use a mixture of these trading techniques to reduce the risks. For example, an investor can hedge his holdings with the use of an options contract. Similarly, swing traders purchase a particular stock for a couple of trading sessions and sell it to gain from the underlying.

Is a stockbroker required for trading in stocks?

In short Yes, a stockbroker is needed to trade in stocks. To buy and sell a stock, you need to have a 'Trading' and 'Demat Account'. A stockbroker provides the necessary accounts with which you could place your trades. Therefore, to go long or short in any stock, you need to have a demat account.

In India, you will have to open an account with a stockbroker or a bank-based broker to get a demat and trading account. Once you get a demat account, you will be eligible to trade stocks and derivatives

Some of the requirements for a demat account in India

1. Bank Account

2. Mandatory documents like PAN Card

3. Proof of identity and proof of address

4. Recent photograph and signature (offline or online)

Once you fulfill these criteria, you can easily open a demat account and trade in stocks, derivatives, bonds, etc.

Alternative options

There is another way through which you can buy and sell shares without a stockbroker. You can do so with Mutual Funds. Mutual funds won’t let you pick particular stocks, but you can buy and sell a group of stocks as picked by the fund. You can trade in mutual funds without a stockbroker and without a demat account. The AMC (Asset Management Company) will take care of all your deposits and withdrawals. Through certain mutual funds, you can bet on a particular sector or the overall economy and profit out of it.

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Categories: Stock Trading
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Related FAQs

Can we open demat and trading account without Aadhaar card in India?

Yes, you can open a trading and Demat account without an Aadhaar card but it's not possible to do that in the online method. To open your account without an Aadhaar card, you will have to visit the broker's branch and complete the process there.

Can I open 2 demat accounts with different stock brokers?

You can open more than one demat account as long as you open them with separate depository participants. It is completely legal to own multiple demat accounts but you cannot have more than one account with a stockbroker.

Is opening a demat account free in India?

Yes opening a Demat account in India might be free with some brokers but not all. Apart from the opening charges, a Demat account is not completely free. You will have to pay an Annual Maintenance charge or Demat fee, every year.

How much money is required to open a Demat account in India?

Many Indian brokers allow you to open your Demat account for free, whereas some charge a nominal fee of Rs 200 to Rs 500. Although there are some recurring charges that you have to bear such as annual maintenance charges, Demat charges, etc.

Which is the best stock broker for beginners in India?

Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.

What are Stock Market Timings in India? Normal Trading Hours

The operating hours for the Indian stock market is from 9 AM to 4 PM while remaining off on government holidays and weekends.

What is Open Interest in Options Trading in Stock markets? Examples

Open Interest is a parameter used by technical analysts and options traders to judge the mood of the market. Open Interest is the total number of outstanding option contracts in a particular strike price of an underlying asset. The OI is an important factor as it defines liquidity and the total number of contracts that are traded at a particular point in time.

Is Finvasia Safe, Good & Reliable Stock Broker for Trading?

Finvasia is as safe and reliable as any other stock broker when it comes to stock trading and investing. It is a relatively new entrant in Indian market, but has established itself in different countries in the past. The activities of all brokers are regularly monitored by SEBI , the apex regulating authority thereby protecting the interest of investors.

Can I trade or invest Rs 100 in the share market of India?

You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.

How can I buy a stock without a broker in Canada?

Canadian citizens above the age of 18 can open a TFSA (Tax-Free Savings Account) in which you can contribute up to $6000 annually. This can be in the form of stocks or other securities. You can also use an RRSP (Registered Retirement Savings Plan) where you can contribute a higher sum which will be taxable, unlike the TFSA which is completely exempt from taxes.