Best demat account for intraday trading


To dabble in intraday trading, you will need to get the tools in place first. And opening a demat account may be at the top of your list.

A demat account works like a bank account for your electronic security certificates. The term ‘demat’ comes from the word ‘dematerialisation’, which is the process of transforming physical security certificates into the digital form. Ever since India switched to dematerialised security certificates in 1996, it has become mandatory for stock exchange traders to have a demat account for online share trading.

But one of the struggles in intraday trading for beginners is choosing a demat account that suits your intraday trading needs. There are so many demat account options available nowadays. How do you find the one that is the best fit?

Choosing the right demat account

The challenge lies in finding a demat account that is affordable and that comes with features to support your day trading lifestyle. Here are some pointers to consider as you shop around.

  1. Low cost

Brokerage costs such as commissions, transaction charges, and annual fees can eat into your profits. So, be on the lookout for these and other expenses. Some brokers may waive certain fees altogether, thus bringing down your costs. For instance, Kotak Securities offers Free Intraday Trading, cutting out brokerage charges altogether.

  1. Wide range of assets

For a day trader, it helps to have access to a range of asset classes. It may be that you trade largely in equity. But it is never a bad idea to link up with a full-service broker that gives you access to derivatives, forex, exchange-traded funds, and more. Should you ever decide to diversify in future, there would be no need to switch to a different broker.

  1. Online support

The window for intraday trading is very short. You have to open and close trading positions within a few hours on a single business day. So, you need access to a robust trading platform that allows you to monitor the markets and execute orders in real-time. Should there be a glitch, you should have easy access to customer support via chat or phone.

  1. Trading tools

Day traders focus on small stock price fluctuations within a single trading day. To do this right, they need access to advanced charting tools to carry out technical research. Since orders have to be executed in real-time, it also helps to associate with a broker that provides all-round tech support. For instance, a broker like Kotak Securities offers a mobile app, an online trading platform, a trading website for slow internet connections, and lots more.

  1. Margin facility

Since you’re keen on intraday trading for beginners, check out the margin trading options when shopping for a demat account. The margin trading facility allows you to borrow from the broker to execute a day trade. This can be a big advantage if you lack the funds to get in on a plum trading opportunity. However, as a beginner, it is preferable to avoid trading with borrowed money unless absolutely necessary.

  1. Market data and research

Day traders need instant access to the latest market data. And it certainly helps if the broker publishes regular research reports. You can use the information to mould your online share trading strategy based on how the markets are moving. As a beginner, you should sign up for regular alerts to ensure you don’t miss out on anything.

Summing up

To make things simpler still, you could opt for bundled products like the Trinity Account from Kotak Securities. This three-in-one offering combines a savings account, a trading account, and a demat account in one neat package. But even if you go about it in a piecemeal way, find a demat account that makes your life easier. Day trading can be quite demanding, and it helps to have support at every step with our expert translators and interpreters