Jan 2, 2009

India - Free demat account: Courtesy brokerages

Shailesh Menon

MUMBAI: Brokerages have begun handing out free demat and broking accounts in their bid to encourage equity investments among retail investors.

Though such a generous marketing idea increases the burden on account books of brokers by about Rs 300 per fresh account opened, it will go a long way to strengthening the retail investor base of brokers, industry sources opine.

A whole lot of brokers - including large ones like Nirmal Bang and India Infoline - are offering free demat and broking account. Investors need to only pay margin money (which also has been reduced, 40 - 60% in some cases) and registration charges (around Rs 500) while opening free demat and trading accounts.

"It is but very natural for brokers to reduce fresh account opening charges; investors are not very keen to trade in equities now. Several brokerages have gone one step ahead and announced cut in margin money (used to be in the range of Rs 5,000 to 10,000) as well. By doling out such freebies, brokers are spending about Rs 300 (per account opened) from their pockets," said the retail equities head of Mumbai-based listed brokerage.

Though free demat and trading accounts are beneficial to investors, investment experts are already sounding the alert bugle. "Investors should look out for hidden charges or implied trade restrictions. In many cases, free accounts are offered for a specific period, say six months to one year. There are also brokerages that offer free demat and broking accounts, with exceptionally higher margin requirements. There could also be restrictions (in fineprint) with regards to how trades are done (online or call-based, cash market or F&O segment and number of trades done)," a Mumbai-based investment advisor said.

As per records with depositories, the number of fresh investor accounts has seen a near-60% drop when compared to accounts opened in January.

Precisely an year ago, when market was extremely bullish and there were a batch of hi-profile public issues waiting to hit the market, large-sized brokerages opened 6,000 to 10,000 fresh demat accounts on an average in a single day. Now, there are hardly 1,000 demat accounts opened in a single day, brokers said.


options trading said...

I really appreciate your post and you explain each and every point very well.Thanks for sharing this information.And I’ll love to read your next post too.
options trading

Nikhil Gupta said...

Mansukh is leading share broking company in India and provides best investment tips and online stock tips for investors. Open demat account with Mansukh Investment and Trading Solutions Provider.Mansukh provides full investment tips for new investors.

indianist said...

Nice explanation about demat account ... thanks

Anonymous said...

Greate article. Keep posting such kind of information
on your site. Im really impressed by it.
Hi there, You have done an excellent job. I'll certainly digg it and in my view recommend to my friends. I'm sure they will be benefited from this

Take a look at my web site; options Trading 101

Anonymous said...

I'm not sure why but this blog is loading very slow for me. Is anyone else having this issue or is it a issue on my end? I'll check back later and see
if the problem still exists.

Here is my homepage ways to make Money without a job

Anonymous said...

Fantastic site you have here but I was wanting
to know if you knew of any forums that cover the same topics discussed in this article?

I'd really love to be a part of group where I can get responses from other experienced people that share the same interest. If you have any suggestions, please let me know. Bless you!

Check out my page: work from home jobs denver

Anonymous said...

Yesterday, while I was at work, my cousin
stole my iphone and tested to see if it can survive a 30 foot
drop, just so she can be a youtube sensation. My apple ipad is now destroyed and she has 83 views.
I know this is completely off topic but I had to share it with someone!

My homepage :: best way to make money from money
My web page > best way to make money online

Anonymous said...

I've been surfing online more than 2 hours today, yet I never found any interesting article like yours. It's pretty worth enough
for me. In my view, if all site owners and bloggers made good content as
you did, the net will be much more useful than ever

my web-site ... get money now for free

Anonymous said...

Hello terrific blog! Does running a blog like this
take a massive amount work? I've virtually no expertise in computer programming however I was hoping to start my own blog in the near future. Anyhow, if you have any recommendations or techniques for new blog owners please share. I understand this is off subject nevertheless I just wanted to ask. Cheers!

Here is my site; how to make money from home legally

Anonymous said...

Simply wish to say your article is as surprising. The clearness
for your put up is simply great and i could think you are knowledgeable on this subject.
Well together with your permission allow me to seize your RSS feed to
stay up to date with impending post. Thanks one million
and please continue the gratifying work.

Take a look at my blog: forex Fund manager

Anonymous said...

Thank you, I've just been looking for info approximately this topic for a while and yours is the best I've found out
so far. However, what in regards to the conclusion? Are you positive concerning the supply?

My website how to make money really fast

Anonymous said...

Thanks for sharing your thoughts on how to pick penny stocks.

my website: how to trade penny stocks
My website :: Insta Forex

Anonymous said...

Pretty nice post. I just stumbled upon your blog and wished to say that I have truly enjoyed surfing around your blog posts.

In any case I will be subscribing to your feed and I hope you write again soon!

Feel free to surf to my blog post: make Money fast online for free

Anonymous said...

After I originally left a comment I seem to
have clicked the -Notify me when new comments are added- checkbox and
from now on each time a comment is added I recieve
four emails with the exact same comment. There has to be
a way you are able to remove me from that service?
Thanks a lot!

My webpage :: making money fast

Anonymous said...

When I initially commented I clicked the "Notify me when new comments are added" checkbox
and now each time a comment is added I get several emails with the same comment.
Is there any way you can remove people from that service?

Bless you!

my webpage; day trading for dummiesforex forecasting

Anonymous said...

I have been exploring for a little bit for any high quality articles or weblog posts in this kind of space .
Exploring in Yahoo I finally stumbled upon this website.

Studying this information So i'm happy to show that I've an incredibly good
uncanny feeling I discovered just what I needed. I most surely will make certain to do not overlook this web site and give it a glance on
a relentless basis.

My web page work from home job

Anonymous said...

I enjoy, result in I found just what I was having a look for.
You have ended my 4 day lengthy hunt! God Bless you
man. Have a nice day. Bye

Also visit my web-site - i need extra money

Anonymous said...

We are a group of volunteers and starting a new scheme in
our community. Your website provided us with valuable info to work on.

You've done a formidable job and our entire community will be grateful to you.

Here is my blog how to make money quick

Anonymous said...

I every time used to study post in news papers but now as I am
a user of internet thus from now I am using net for articles or reviews, thanks to web.

my blog post ... how to get free money

Anonymous said...

What a material of un-ambiguity and preserveness of precious experience on the topic of unpredicted feelings.

my webpage :: easy ways to make money online

Anonymous said...

If some one wants to be updated with most up-to-date technologies therefore he must be pay a quick
visit this web site and be up to date all the time.

Feel free to visit my site :: Forex Platforms

Anonymous said...

Nice blog here! Also your web site loads up fast!
What web host are you using? Can I get your affiliate
link to your host? I wish my web site loaded up as fast as yours lol

Also visit my webpage: how To make money online for free and Fast

Anonymous said...

When I originally commented I clicked the "Notify me when new comments are added" checkbox and now
each time a comment is added I get four emails with the
same comment. Is there any way you can remove me from that service?
Many thanks!

Also visit my web-site i need money free
my page: i need money right now for free

Anonymous said...

Hey I am so glad I found your blog, I really found
you by mistake, while I was searching on Yahoo for something else, Anyhow I am here now and would just like to say thank you for a marvelous post and a all round thrilling blog
(I also love the theme/design), I don’t have time to go through it all at the
minute but I have book-marked it and also added your RSS
feeds, so when I have time I will be back to read
a great deal more, Please do keep up the excellent b.

Look at my blog post; How to make money online for free and fast

Anonymous said...

Great web site you have got here.. It's difficult to find high-quality writing like yours nowadays. I really appreciate people like you! Take care!!

My web blog how to make some money
Also see my site - where to get free money

Anonymous said...

This post offers clear idea designed for the new users of blogging,
that really how to do blogging and site-building.

My page :: day trading strategyforex exchange

Anonymous said...

Hi all:) I usually do not know the best way to add your own RSS reader on your website.

Check out my blog post ... consolidate private loans