Best Stock brokers offering 3-in-1 trading and demat account
If you are a new investor and want to invest in stock market, you need to open trading and demat account with any of the stock broker in India. Trading and demat account is required to buy and sell stocks of the companies. However, if you are a new investor or existing investor, you may open 3-in-1 account which would be very useful to trade easily in the stock market. Who is the best stock broker offer 3-in-1 trading and demat account for stock market investment? Is there any comprehensive list of stock brokers indicating what are the account opening charges, AMC charges, transaction charges etc.?
What is 3-in-1 Account?
If you want to trade in stock market, you need to have a trading and demat accounts to buy and sell stocks. There are various stock brokers offering trading and demat account. However, everyone does not offer all services. Also, some of the stock brokers do not have their own banks in their group. Here comes 3-in-1 account. This account is nothing but but a combination of trading account, demat account and a bank account.
Also Read: Do you know that share trading tips may not always work?
Advantages of 3-in-1 trading and demat account
There are several advantages of 3-in-1 trading and demat account. Major ones are indicated below:
- 3-in-1 account is easy to operate. You could be a new investor or an existing investor, it can be operated easily and it is stress free. You can transfer funds from your bank account to your trading account with a click of a button and vice versa.
- Majority of the stock brokers offering 3-in-1 account provide services like stock trading, currency trading, bonds/NCD, Fixed Deposits, Debt instruments etc. Means all these are offered in one single account. You need to not open separate accounts for each of them, but all are available under one roof.
- Various research articles available for each and every investment section which helps you to take decision about such investment options.
Negatives of 3-in-1 trading and demat account
- Some of the 3-in-1 accounts offering stock brokers ask investors to open S.B account where a minimum balance needs to be maintained (e.g. Rs 5,000).
- Stock brokers offering 3-in-1 account charge high brokerage for stock market transactions. It comes around 0.50% of transaction charges unless you are regular trader and trade in huge volume where you would get discounts.
- They charge account opening fees, whereas non-3-in-1 stock brokers are waving off such charges.
Best Stock brokers offering 3-in-1 trading and demat account
Now, coming to the main point, here is the list of stockbrokers who are offering such 3-in-1 trading and demat account. Let us see some of the highlights of the list.
Account opening charges: All stock brokers offering 3-in-1 account charge account opening fees of Rs 500 to Rs 999. Lowest charged is Standard Chartered, Kotak Securities and IDBI Paisa Builder.
AMC Charges: 3-in-1 stock brokers charge AMC charges (which needs to be paid every year) in between Rs 350 to Rs 750. IDBI Paisa builder, SBI Securities and ICICI Direct charge lowest AMC charges compared to others.
Equity Brokerage charges: Share brokerage charges are between 0.49% to 0.55% of equity (delivery) transactions. Lowest offered is Kotak Securities (though the variance is small).
Intraday investors: If you are an investor who generally trade more in Intraday, you should avoid ICICIDirect.com. You can pick up Standard Chartered or Kotak Securities as they charge 0.05% of the transaction value as brokerage charges.
Equity futures investors: If you are an investor who generally trade more in futures, you should avoid IDBIPaisa Builder. You can pick up any other stock broker.
Equity Options traders: If you trade more in equity options, you should consider ICICIdirect as they offer Rs 65 to Rs 95 as a transaction charge whereas other charge Rs 100 per transaction.
Also Read: Points to be considered while investing in penny stocks in India
Should you consider stock broker offering lowest minimum brokerage?
If you are small investor and invest less than Rs 6,000 in a transaction, then considering minimum brokerage makes sense. E.g. ICICI Direct charges Rs 0.55% as charges. Means if you trade Rs 5,000, means they are supposed to charge Rs 27.5. However, minimum charges are Rs 35, means you would be loosing Rs 7.5 per trade. In such case going for SBI or Kotak Securities would be a good idea.
In coming weeks, I would also provide a list of stockbrokers who would be offering trading and demat account (non 3-in-1 account) along with their charges.
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Suresh
Best Stock brokers offering 3-in-1 trading and demat account
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Hi Suresh,
Thanks for the article.I am very new to stock market.I want to do intraday trading. But scared of brokerage concept. Which will be the best 3 in 1 account with due respect to minimum brokerage?
Hi Dear I want to open 3 in 1 Account can you tell me which is good in service as I have some movement issues So I need good in Service
3-in-1 accounts are not at all beneficial sir. I used to trade with ICICI before and got busted mainly because of their high brokerage. You should try some good broker like FYERS (www.fyers.in). Recently I tried their trading software and it is far better than amibroker according to me. ITs free also..brokerage very cheap at Rs 100 max.