Low Brokerage Trading Account | Image Resource: freepik.com

 

To trade online you need a demat and trading account. You can trade online in equity, currency, futures and options and commodity. There is a charge for opening the account and there is charge for maintaining the account too.

 

There are many online brokers offering demat and trading account. The charges differ per broker. The brokers offer different brokerage plans for the different trading needs. You can select the low brokerage trading account to trade online.

 

The trading account is a way to do transactions in the stock market. The transaction with the exchange is done with the trading account. The trading account has an unique ID which is used to identify every transaction. The trading account is held by the broker. 

 

Brokerage plans

The different brokerage plans are as follows:

Value plan

This plan should be chosen when you want to trade in small volumes and save on heavy brokerage. The brokerage is less than one paise. This plan offers high intraday exposure for you take the right decisions. The margin against shares is held in the trading account. There is no minimum commitment.

 

Power plan

This plan should be chosen when you want to trade a few times and mainly invest to get good returns. The brokerage is Rs. 15 per executed order regardless of the trade size. The plan offers high intraday exposure. You get margin against shares. There is no minimum commitment.

 

Trading process

When you trade online the trading account is used to do the transaction and the demat account is used to store the shares. When you want to buy shares form a trader in the stock market the money is taken from your bank account to the trading account. The transaction is done through this account with the exchange. The shares are stored in the demat account. 

 

When you want to sell shares the shares are transferred from your demat account to the counterparty’s demat account. The money is transferred to your account. The transaction is handled by the brokerage company. You can cross check the ownership of the shares in the demat account at the depositories. You get direct access to the demat account. This keeps the process transparent.

 

There are many benefits of trading online. The transaction cost is low and it offers fast transaction. You can trade in multiple markets and products. There is zero hidden cost. Zero balance trading account. There are many online tools available which help you trade online.