How to Start Online Equity Trading with a Zero Brokerage Demat Account?

Starting online equity trading with a zero brokerage Demat account in India can be an excellent way to begin your investment journey without incurring high costs.

How to Start Online Equity Trading with a Zero Brokerage Demat Account?

Here’s a detailed guide with practical tips and specific steps to help you get started.

Understanding Online Equity Trading

Online equity trading allows you to buy and sell shares of companies listed on the stock exchange through an internet-based platform. Unlike traditional trading, which involves calling a broker, online trading gives you direct control over your transactions.

You can execute trades in real-time, track your portfolio, and access research and analysis tools from the comfort of your home.

Choosing the Right Zero Brokerage Demat Account

A zero brokerage Demat account is essential for minimising your trading costs. These accounts do not charge brokerage fees on trades, allowing you to maximise your profits. Here's how to choose the right account:

  1. Compare Different Providers: Research various financial institutions and brokerage firms offering zero brokerage Demat accounts. Look at their features, customer service, and user reviews to find a reliable option.
  2. Check for Hidden Charges: While the account may not charge brokerage fees, be aware of other possible charges like annual maintenance fees, transaction charges, or account opening fees.
  3. Ease of Use: Ensure the trading platform is user-friendly and offers a smooth trading experience. Look for features like a robust mobile app, research tools, and educational resources.

Opening a Zero Brokerage Demat Account

Opening a zero brokerage Demat account is a straightforward process. Follow these steps to get started:

  1. Fill Out the Application Form: Visit the chosen broker's website and complete the account opening form with your details.
  2. Submit KYC Documents: Upload or submit your Know Your Customer (KYC) documents, which typically include proof of identity (Aadhaar card, PAN card), proof of address (passport, utility bill), and a passport-sized photograph.
  3. E-Sign the Form: Many brokers offer the convenience of e-signing the form using your Aadhaar-linked mobile number.
  4. Verification Process: Once your application is submitted, the broker will verify and process your documents. This may take a few days.
  5. Account Activation: After verification, you will receive your account details, and you can start trading immediately.

Funding Your Account

To start online equity trading, you need to fund your regular or zero brokerage Demat account. Here's how you can do it:

  1. Link Your Bank Account: Connect your primary bank account to your trading account. This will facilitate the easy transfer of funds.
  2. Transfer Funds: You can transfer funds to your trading account using net banking, UPI, or other online payment methods.
  3. Maintain Adequate Balance: Ensure you have enough funds to cover your trading activities, including any applicable transaction fees.

Learning the Basics of Trading

Before diving into online equity trading, understand the basics:

  1. Market Orders and Limit Orders: Learn the difference between market orders (buying/selling at current market prices) and limit orders (buying/selling at a specified price).
  2. Understanding Indices: Get familiar with major stock market indices like the Nifty 50 and Sensex, as they provide an overview of market trends.
  3. Analysing Stocks: You can evaluate stocks using fundamental and technical analysis. Fundamental analysis involves studying a company's financial health, while technical analysis focuses on historical price patterns.

Executing Your First Trade

Once you have funded your account and learned the basics, you can start online equity trading:

  1. Select the Stock: Use the research tools available on your trading platform to choose a stock you want to invest in.
  2. Place the Order: Decide the type of order (market or limit) and enter the number of shares you wish to buy.
  3. Review and Confirm: Double-check the details and confirm your order. Your trade will be executed, and you will receive a confirmation message.

Monitoring Your Investments

  1. Track Performance: Use the portfolio tracker available on your trading platform to monitor your stocks' performance. This tool provides real-time updates on the value of your investments, helping you understand how your stocks are performing relative to the market.
  2. Stay Informed: Subscribe to financial news websites, follow market analysts, and join online forums to discuss market trends and stock performances. This knowledge can help you anticipate market movements and make proactive decisions to protect and grow your portfolio.
  3. Review and Adjust: Assess the performance of your investments against your financial objectives. If certain stocks are not performing as expected, consider whether to hold or replace them with better-performing assets. Adjust your portfolio to balance risk and return and capitalise on new opportunities. Regular reviews help you stay on track and ensure your investments work towards your long-term financial goals.

Taking Advantage of Additional Features

  1. Research Reports: Accessing in-depth research reports and analysis can significantly enhance investment decisions. These reports provide detailed information on market trends, company performance, and future projections. They often include expert opinions and recommendations, helping you understand the potential risks and rewards associated with specific stocks.
  2. Educational Resources: Take full advantage of the educational resources offered by your broker. These may include tutorials, webinars, articles, and online courses designed to enhance your trading knowledge. Whether you are a beginner or an experienced trader, continuous learning is key to staying ahead in the market. Educational resources can help you understand complex trading strategies, improve your technical analysis skills, and update you on the latest market trends and technologies.
  3. Customer Support: Efficient customer support can be invaluable, especially when you face technical problems or need assistance with your trading account. Look for brokers that offer multiple support channels, such as phone, email, and live chat, and check their responsiveness and willingness to help.


Starting online equity trading with a zero brokerage Demat account in India is a smart move for cost-conscious investors. Following the steps outlined above, you can efficiently set up your account, fund it, and confidently begin trading.