Ravi’s Gadgets

First, you need to be a citizen of India. You needto have a vaild government provided identity proof, and a bank statement which has got a good number of transactions, just to show that you have been using the account well. Nothing much, just about 10 transactions would do.

Then you might want to check who is the best provider. In my opinion, Religare is the best for start up investors. If you think you cant do it alone from your home in your spare time, go for UTI Securities, where they give you a table to sit, and give you coffee and, if you trade well, lunch as well, and you can sit there, trade and come back with cash. Karvey is not for beginners. When you take delivery of shares, you could transfer to any demat account that you have got anywhere. Almost all banks offer demat accounts these days. It is the trading account that you need to choose well.

The demat account costs you anything from Rs 500 to Rs 750 per annum, and they dont charge you anything except that. The Trading Account charges you upto 2 % excluding service taxes for any trading that you do. Intra day charges are quite low, but it is not an easy win in intraday transactions.

If you research well, and know what you are doing, share trading in India is a very good thing to be doing.

About 20 years ago, people used to book for IPO offers advertised on papers, send a demand draft for a desired amount of shares, and wait for an allotment. If they dont get an allotment, they will have to wait to get their money back. Money spent on making the demand draft is wasted, the cancellation charge is wasted, and the interest for your money for the period for which the money was lying with the bank uncashed by the company, and unutilized by you, is also wasted.

About 10 years ago, BSE went online, and everything became computerized. And you really did not need a broker at the share market to do your trading. All that you wanted was a DeMat account with an internet connection at your home.  Just pick on what you wish to buy, and on the same evening, it would hit your account.

In 2005, the Bombay Stock Exchange was at some 5000 points, and today it is at 17000 points, meaning if I had invested Rs 5000 in getting 1 share of BSE, I would have made around Rs 17000 today. And if I was rich and had bought 100 shares, imagine what my growth would have been.  There has been an average growth of 120 points every day in the past 3 years, and if I had bought about 100 shares then, my growth would have been Rs 12,000 per day. What a way to make money.

Now Bombay Stock Exchange has become one of the most popular places to invest, where not only Indians are investing, but even people from all nukes and corners of the world are doing business.