Demat and trading account
Demat holds shares; trading account places orders.
Why it matters
Annual maintenance charges vary from zero to ₹900 (≈$11).
What to check
Brokers pushing margin and F&O activation.
Personal finance
Stocks (India)
Opening a demat account in India takes minutes, and apps push frequent trading and F&O. Before buying shares, understand brokerage and hidden charges, how to read a company's basics, and how much of your money should be in single stocks at all.
Quick answer
Start with index funds; add single stocks only after learning the basics.
Avoid F&O — SEBI data shows about 9 in 10 traders lose money.
Never act on WhatsApp or Telegram tips.
Hold quality businesses for years, not days.
Find your fit
A few questions about your situation, not about the product.
0/20
Add one short need not covered above.
Answer all 2 questions to see the spec sheet to shop with.
The spec sheet, decoded
Brokerage and charges
Brokerage plus STT, exchange fees, GST and stamp duty.
Why it matters
Frequent intraday trading lets charges eat your returns.
What to check
"Zero brokerage" that excludes DP charges on selling.
P/E ratio
Share price divided by earnings per share.
Why it matters
Shows how expensive a stock is versus its profits.
What to check
Low P/E caused by falling profits.
Debt-to-equity
How much the company borrows versus owners' money.
Why it matters
High debt is risky when rates rise.
What to check
Rising debt with flat profits.
Promoter holding and pledge
Founders' stake and how much they have pledged for loans.
Why it matters
High pledging can force sales in a fall.
What to check
Promoters steadily selling.
Capital gains tax
Tax on profit when you sell.
Why it matters
Held under 1 year: 20%; over 1 year: 12.5% above ₹1.25 lakh (≈$1,500).
What to check
Intraday profits taxed as business income.
Before you pay
- ✓Have an emergency fund and term insurance in place first.
- ✓Choose a SEBI-registered broker and check all charges.
- ✓Read the annual report summary before buying.
- ✓Spread money across 8–15 companies in different sectors.
- ✓Turn on two-factor login and check your CDSL/NSDL statements.
Common traps
- !Futures and options trading as a beginner.
- !Stock tips from social media or unregistered 'advisers'.
- !Buying penny stocks because they look cheap.
- !Averaging down on a falling company without checking why.
You can start with a single share; keep single stocks a small part of your savings at first.