30-Day Stock Market Series
Day 2 of 30
Demat Account, Trading Account & Broker: The Complete Setup Guide
You can't invest in stocks without the right infrastructure. Day 2 covers the three-layer setup every Indian investor needs.
The Three Accounts You Need
Account StackBank Account → Trading Account → Demat Account. All three must be linked.
1. Demat Account
Dematerialised account — stores your shares electronically. Maintained by depositories: NSDL (National Securities Depository Ltd) or CDSL. Your broker creates a Demat account with one of these on your behalf.
2. Trading Account
The interface through which you place buy/sell orders on NSE/BSE. This is your broker's platform — Zerodha Kite, Groww, Upstox, etc.
3. Bank Account
Linked to your trading account for fund transfers. Use UPI or NEFT/RTGS to add funds before trading.
Choosing a Broker
Discount Brokers
Zerodha, Upstox, Groww — ₹0 to ₹20/trade flat fee. Best for self-directed investors.Full-Service Brokers
ICICI Direct, HDFC Securities — research + advisory, higher fees (0.3–0.5%). Best for beginners needing hand-holding.KYC: What You Need
- PAN Card (mandatory)
- Aadhaar Card (for e-KYC via OTP)
- Bank statement or cancelled cheque
- Signature + selfie
- Income proof (for F&O trading only)
Charges to Know
# Typical charges on equity delivery (NSE)
brokerage = 0 # Free on delivery at Zerodha/Groww
stt = 0.001 # 0.1% on buy + sell
exchange_txn = 0.0000345
sebi_charges = 0.000001
gst = 0.18 # on brokerage + exchange charges
stamp_duty = 0.00015 # 0.015% on buy side
Pro TipFor delivery (long-term investing), brokerage is ₹0 at most discount brokers. You only pay STT, GST, and stamp duty — typically 0.15–0.2% total per trade.
Account Activation Timeline
- e-KYC via Aadhaar OTP: Same day to 24 hours
- Physical KYC via courier: 3–7 business days
Today's Action
Open your account at a SEBI-registered broker today. Use e-KYC for fastest activation. Don't fund the account yet — learn first, invest second.