POSTED BY February 14, 2014 4:08 pm COMMENTS (2)ON
This is a query for diff between DP account and Trading account.
What I understood from my stock broker is: DP account is required to purchase Shares and MFs; whereas Trading account is required for selling the already purchased units (shares & MFs). He also informed that both accounts are mandatory for me to trade MFs/IPOs/claiming RGESS.
And the stock broker is charging 300/-each for opening DP account & Trading a/c. AMC and trading charges are extra.
Pl. let me know, whether the stock broker is correct/partially correct. He has given me a big bunch of documents (un-fillled) and asking me sign in about 30 places on the doc. When I tried to read the document, lot of technical/ legal terms are involved. Is this a general practice to sign such an unfilled document.
Or can you suggest me a good broking agency (preferably online agency) for opening DP and Trading accounts.
Thanks in advance, Regards, Jhaji
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2 replies on this article “Would like to know difference between DP account and Trading account”
Dear Jhaji, even with an online broker, you w’d have to sign a lot of papers. Do you really want to invest in direct stocks or MFs alone? If you want to invest in MF alone, you can do so with out demat and trading account.
You can read the following article
Yes, when you open a demat account, you will have to sign at around 50 places. This will also include which products you wish to trade, which exchanges, whether you want to allow your broker to trade on your behalf or not.
Basically there are two types of brokers available, full-service and discount broker.
1) If you want regular research reports, analysts findings and all that stuff then go for Full Service broker.
2) If you JUST want DP+Trading Acc. with NO research reports and other services, then you should choose discount broker whose charges are less.
There are many full service and discount brokers available providing online trading option. Choose as per your need. Following is the reference list.