India's Top Online Stock Broking Houses

Before You Open a Brokerage Account (DEMAT Account)
Many times new trader or investor gets confused in selection of broker house at time of opening Trading and DEMAT account because of lack of knowlege. Choosing a broker is one of the most important decision you'll have to make.Here are seven things you want to look for before you open an account.

[1]Reputation# 

A reputed broker protects the investor from default risks,fraud and other financial risks.Avoid franchisee broker ,select direct broker branch .

[2]Flexibility# 

 The stock exchanges follow the T+2 settlement schedule. This means that settlement occurs two days after the transaction. Hence, if you decide to buy shares on a given day, you must submit the cheque to the broker well in advance, so that he can deposit the amount with the exchange. Some of the brokers do provide flexibility in terms of payments made, while others ask for an upfront payment of funds. Brokers also allow margin based trades and square off of positions in intra-day transactions. Ideally, you must check with the broker as to what are the facilities available

[3]Broking rates# 

As per SEBI guidelines, a broker can charge a maximum of 2.5 per cent of the consideration as brokerage. The standard rate charged by most, ranges from 0.20 to 0.75 per cent for delivery based and .001 to .05 for intraday. Brokerage inflates the cost of purchase and reduces the realization from sale of securities. You must therefore check the rates charged. Sometimes, a minimum transaction charge is attached irrespective of the value. Brokers also provide competitive rates to the high value investors and to regular traders.you can negociate your brokerege fee with DP.Depository Participant(DP) also charges your account maintanance FEE yearly varries broker to broker

[4]Different modes of transactions# 

 An investor can buy or sell securities, either by phone, by giving an order through the internet or by making personal visits. The broker identifies transaction done on telephone by an alphanumeric code allocated to the investor. Web based transactions are conducted by using a user id and password on the broker’s website. This is basically a unique identification for each client and also a security mechanism.
[5]Trading Platform& Stock Research & Tips# Most of broker providing a power ful real time trading platform with charting facilities "odin "(religare, angel, nirmalbang motilal osawal etc)"trade tiger"(sherkhan) or "pointer"(ventura) etc.some of them charging service yearly while some free of charge.
broker also provide stocks research in their site and gives tips in mobile and email now a days, however ,tips are how much reliable i am not sure because i think its kind of influence to trader to trade you cannt blame them for your loss on their tips.you must check with the broker all sevices

[6]Service Quality#  

Service quality of the broker is another important determinant. For instance, how fast a broker can transact for his clients reflects his service standards. Since markets operate on a real time basis, at times, small delays result in financial losses. Another aspect of quality is transfer of security by the broker to the client account, settlement of funds, timely dispatch of contract notes, providing transaction ledger to the clients etc.

[7]Document Required#
1) To open a demat account you have to fill demat request form
2) One Passport size photograph, proof of address like Voter ID card, electricity bill or Ration Card, Employee ID Card, Bank attestation and Latest IT Return
3) Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent.
4) Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization
5) After dematerialization, your depository account with your DP would be credited with the dematerialized securities.
6) You have to Submit the PAN Card as a proof of identity .As of April 2006 it ismandatory, if any person want to open a demat account should have a PAN CARD (Permanent Account number) . Without a PAN CARD you are not be eligible to open a Demat account

India's Top Online Stock Broking Houses

There are more then 345 stock brokerage houses registered in NSE and also a big list of members and brokers registered in BSE.Most of them operating actively.but we will discuss only online brokeing service provider here.

1.Sharekhan
2.ICICIdirect
3.Reliancemoney
4.Religare
5.Indiabulls
6.5paisa
7.Ventura
8.Angel Broking
9.Motilal oswal
10.Nirmal Bang
List of 242 Members are granted permission for Internet Trading

http://www.nseindia.com/content/equities/eq_inetmembers.htm

If any brokerage company not in list ,can email me i will add ..........
Note-This information may useful for new Investors and Traders.