Question 1

What is the difference between Demat and trading account?

Accepted Answer

A Demat and trading account are both mandatory requirements for trading in the stock market in
India. However, contrary to popular belief, they are 2 separate accounts and serve different
purposes. While a Demat account is quite similar to a bank account and is needed to hold/store
securities such as shares, ETFs, mutual fund REITs, etc. in a digital format, a trading account is
required to buy and sell them on the stock exchange.

Both these accounts work in tandem and are usually linked to each other for seamless trading.
However, it is also possible to open a Demat account alone if the idea is just to store your
securities for the long term. Similarly, it is also possible to open a trading account alone and
trade in futures and options, as this form of trading does not require taking the delivery of the
stocks, hence not requiring a Demat account.

Question 2

How to trade online using trading account?

Accepted Answer

Your Demat, trading, and bank account are interlinked and work in tandem to create a seamless
investment experience. When you want to buy a stock, the money is transferred from your bank account
to your trading account. When buy order is successfully executed, money is debited to your trading
account. In exchange, shares are credited in your Demat account.

Question 3

Why is a trading account important?

Accepted Answer

Trading in stocks and other securities can be a profitable source of income. It is no surprise then
that crores of Indians transact on the stock market on a daily basis. However, this cannot be done
directly on your own. As per SEBI guidelines, you need to first open a trading account with a
registered broker. Your broker then provides a trading terminal, using which you can transact in the
stock market. A trading account makes investing convenient, safe, fast, and transparent.

Question 4

How do I know if m.Stock trading account is right for me?

Accepted Answer

Using its free demat account you can freely trade as much as you want without worrying about trading
or per transaction charges. With m.Stock, you also get free AMC. The amazing part is that m.Stock is
not just a trading app. It also allows you to invest in direct mutual funds conveniently via a SIP
or even as a lumpsum amount. Always available through the web portal and smartphone app and
supported by an ever-reliable customer support team, m.Stock is clearly one of the best stock market
apps in India.

Question 5

How cost-effective is it to open an account to trade?

Accepted Answer

Different brokers levy different trading account opening charges. Furthermore, there may be other
charges as well like brokerage and operating charges. The amazing part about m.Stock is that the
trading account can be opened for free and you can trade in all segments (delivery, intraday and
F&O) by paying ₹10 per order brokerage. So, effectively, you can save over thousands of rupees on
brokerages and other charges, making it the most cost-effective option out there.

Question 6

How long does it take to open this type of account?

Accepted Answer

If you open a trading account through the traditional, offline, mode, then it is likely to take 5-6
business days. However, these days it can be done using the internet in a paperless manner. While
most brokers have started offering the ability to open a trading account online, with m.Stock this
can be done in just a matter of a few minutes by using its state-of-the-art technology and intuitive
platform to help you open an account without leaving the comfort of your home. All you need are the
following:

Smartphone
 Email ID
 Bank Account (IFSC code, Account number, Photo of a cancelled cheque)
 PAN card
 Address proof (like passport, Aadhaar card)

Question 7

What are the types Of Demat accounts?

Accepted Answer

There are 3 types of Demat accounts in India:

Regular Demat Account is the most popular one, used by resident Indian citizens to hold and store
 stocks and other securities in digital form. This account is linked to a regular bank account
 Repatriable Demat Account is used by NRIs wherein they can transfer their trade earnings overseas.
 A Non-Resident External (NRE) bank account is compulsory to open a repatriable Demat account
 Non-repatriable Demat Account is used by NRIs to trade on the Indian stock exchange without
 transferring money abroad. This Demat account is linked to a Non-Resident Ordinary (NRO) bank
 account.

Question 8

What are the different types of trading accounts?

Accepted Answer

There are three main types of trading accounts:

Equity trading account allows you to buy and sell stocks, futures and options contracts. However,
 you will not be able to take delivery of the stock. In other words, you can trade but you can only
 hold them in a Demat account.
 Currency trading account lets you participate in the largest and most liquid trading market in the
 world - the foreign exchange trade. Forex or currency trading requires very low margins and can be
 highly rewarding.
 Commodity trading account is required to trade in various commodities like precious metals (gold,
 silver, platinum), Agri-products (pulses, cotton, paddy), spices, crude oil, etc. The most popular
 commodity trading exchanges are the National Commodity & Derivatives Exchange Limited (NCDEX) and
 the Multi Commodity Exchange of India Limited (MCX).

Question 9

What factors should you consider while opening a trading account online?

Accepted Answer

m.Stock offers one of the fastest trading platforms, which is highly intuitive and built using
state-of-the-art technology. It is extremely easy to use and navigate while giving you all the
latest market updates and information in real time, for you to make informed trading decisions.
m.Stock offers minimal brokerage of ₹10 per order across all segments, ETFs along with its free
trading account.

Question 10

Can I trade in currency?

Accepted Answer

Yes, you can trade in the four major currency pairs, which are, USD-INR, EUR-INR, GBP-INR, and
JPY-INR. In fact, the currency market is one of the largest in the world and is highly liquid.
Moreover, it requires very low margins. This makes it highly lucrative and extremely popular. All
you need to do is open a currency trading account or activate the currency/forex trading segment in
your existing m.Stock trading account. The most common purposes people do currency trading for
include general gains and business operations, hedging their portfolio from market volatility, and
as a means of speculative trading.

Question 11

Can I trade in derivatives?

Accepted Answer

Yes, you can trade in derivatives as well. Derivatives can be traded across different asset classes
such as equity, currency, metals, and other commodities etc. Your m.Stock trading account allows you
to buy and sell derivative contracts for Futures & Options as well. Since, derivatives trading
requires experience and expertise, the m.Stock platform offers guidance and helpful tips that help
you maximise your gains while minimising your risk exposure.

Question 12

Can I trade with ₹10 brokerage on mobile apps?

Accepted Answer

Yes, you can trade with ₹10 brokerage using mobile apps. m.Stock offers a mobile app for trading
that lets you place orders across all market segments.

Whether you want to trade in equity or F&O, or use the Pay Later MTF facility, an easy-to-use mobile
app lets you place orders quickly with the same low-cost brokerage structure. It also offers
real-time data, allowing you to track prices, view your holdings, and manage your account easily,
without any additional charges for using the mobile app.

Question 13

Can I trade with multiple brokers?

Accepted Answer

Yes, you can trade with multiple brokers in India. There is no limit on the number of Demat accounts
you can hold, provided each is linked to your PAN card. Having multiple accounts allows you to
diversify your risks and access different research tools or trading features.

However, you must manage multiple apps, logins, and charges, and track all your holdings carefully
to avoid confusion. You may also have to pay account maintenance fees for each account.  So you can
trade on platforms like m.Stock with only ₹10 brokerage. You can use it for delivery, intraday, F&O,
and MTF trades.

Using multiple brokers can be beneficial if you want to separate your long-term investments from
your short-term trading activities.

Question 14

What are the commission charges for stock brokers?

Accepted Answer

Stock brokers charge a few types of fees when you trade or invest. The main one is brokerage, which
can be a flat amount per trade (like ₹10) or a percentage of the trade value, depending on the plan
you choose.

On top of brokerage, you also pay statutory charges that apply to everyone, such as exchange
transaction fees, Securities Transaction Tax (STT), GST, and SEBI turnover charges. For delivery
trades, you may also see demat transaction fees when shares are credited or debited from your
account.

Some brokers may add optional fees for premium tools, research, or subscription plans, but these are
not compulsory. Always check the broker’s charge sheet so you know all costs involved before placing
orders.

Question 15

What are the eligibility criteria for ₹10 brokerage?

Accepted Answer

The eligibility criteria for the ₹10 brokerage plan vary by broker. For example, at m.Stock, it is
available to traders by default once they open a trading and demat account. You do not need to meet
any volume-based criteria or apply for the ₹10 plan separately.

Wherein delivery, intraday, F&O and MTF trades are charged ₹10 per order regardless of trade value..
 For accurate details, it is recommended to check the terms and conditions of your selected broker.

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