Hello friends! I hope you’re all safe and ready to learn. In this blog, we’ll explore the essential tools and accounts every stock market trader or investor needs to get started.
Primary Requirements
These are the non-negotiables for anyone entering the markets.
1. Bank Account
You can’t transact without it. Ensure you have:
- A standard savings or current account
- Internet banking or UPI access for quick fund transfers
2. Trading Account & Demat Account
Trading Account
This is your gateway to buying and selling equities, futures, and options. You open one through a broker, and every transaction flows through it.
There are two main broker types:
- Full-Service Brokers
- Offer research reports, advisory calls, tax tips, and more
- Charge higher brokerage per trade
- Examples: Motilal Oswal, Share Khan, ICICI Securities, HDFC Securities
- Discount Brokers
- Provide execution-only services
- Low or flat-fee brokerage
- Examples: Zerodha, Fyers, 5Paisa
Which to choose?
- Long-term investors who value hand-holding and ready-made research may prefer a full-service broker.
- Active traders—intraday, swing, or high-frequency—often save more by using a discount broker.
A quick experience: On Motilal Oswal, I bought Dabur India at ₹465 targeting ₹478. After brokerage, my effective buy was ₹471 and sell ₹470. The trade hit ₹478, but high fees ate into profits. With a discount broker, I would’ve kept both gains and confidence.
Demat Account
Your “warehouse” for all dematerialised shares, mutual funds, and securities.
- Who needs it?
- Positional traders and long-term investors (you take delivery and hold shares)
- Intraday or futures/options traders (no delivery) can skip it
Broker Recommendations
Based on two-plus years of trading experience:
- Full-Service: Motilal Oswal for comprehensive research and advisory
- Discount:
- Zerodha as your primary broker
- Fyers for advanced web-based charting
Open accounts via these referral links to support my blog:
- Zerodha: Click here to open an account
- Fyers: Click here to open an account
Feel free to visit zerodha.com and fyers.in directly if you prefer.
Secondary Requirements
Optional for buy-and-hold investors but critical for active and intraday traders.
1. Laptop or Personal Computer
Mobile charting works for occasional investors. Regular traders need a larger screen and multiple windows.
2. Reliable Internet Connection
A dropped connection during a trade can cost you dearly. Always trade with stable broadband or fiber.
3. Standby Internet Connection
Backup options—like a Jio-fi or Airtel hotspot—ensure you never get stranded if your primary link fails.
Conclusion
That wraps up the basic setup for your trading or investing journey. If you found this helpful, please leave a comment, share on social media, and subscribe for more insights. I’ll be back soon with deeper dives into technical analysis and strategy development.
Stay tuned!