Trading account allows you to invest in equity, segments and F&O. You need to approach share broker or authorized dealer in the market to perform the activity. The Demat account allows you to hold the shares that you purchased from the stock market. You can dematerialize and transact using the Demat account only.
The 3-in-1 Account is a combination of three separate accounts. It includes banking account, trading account, and a Demat account. Banking account is the usual account where you save your money and use it for regular transactions such as deposits, money transfer, opening fixed deposits and recurring deposits.
3-in-1 Account = Savings account + Trading account + Demat Account
The important part of the 3-in-1 demat account is its seamless operation capability. It becomes easy for you to carry out all the transactions with a single account. You can avoid opening multiple accounts with different dealers and keep a track of each activity individually.
With one account available in hand, from an authorized dealer, keeping track and monitoring the activity becomes easy. In addition to the operation ease, the 3in1 demat account gives a broad range of investment options.
You can use the single account to buy/sell shares without opening an additional account. The money for the purchase of the shares debits automatically from the savings account. The acquired shares credit automatically to the Demat account.
The reverse process also remains the same, where you can sell the shares using the Demat account and receive the money for the sold shares directly into the savings account.
Related Read: How to open an online demat account in India
Best 3in1 demat and trading account in India
It is to be noted that although trading cost is high for the 3-in-1 account, running all the three accounts impeccably gives unique benefits. The single window integrated solution makes it easy for you to have a better transaction ability and money management.
It reduces the risk of transfers, mental hassles and is beneficial, especially if you choose a long-term investment plan. For this reason, the high brokerage and service charge may not be a constraint .I prefer peace of mind, so did not mind high brokerage. But I must admit now that as transaction cost value gets bigger, feel bit pinch . But still, am continuing with 3 in 1 account.
Disclaimer: I have an NRE demat account with HDFC Securities and used to have with ICICI Direct while was in India.
The 3-in-1 account, with its enormous advantages, proves an eye-catching element for beginners. If you are a beginner and have no experience in handling the several accounts related to the equity, IPOs, funds, stocks and shares, choosing the 3 in1 account from a notable institution is beneficial.
The account also gives you the ability to invest in equities, IPOs, online mutual funds, derivative trading, insurance, NPS, tax services and other financial services.
Authorized participants offer 3-in-1 demat account and provide the banking facilities through their parent company. The leading members are ICICI Bank, HDFC Bank, Standard Chartered, IDBI Bank Ltd., HSBC InvestDirect, Kotak Securities, SBI and Axis Bank.
The 3-in-1 Demat and trading account is advantageous for beginners. However, it is essential to choose the leading provider in the market. The evaluation for the selection comprises of experience, service, brokerage charges and fees.
- ICICI Bank
ICICI Bank offers the investment under its ICICI Direct investment service, which is under the ICICI Securities. It is the single largest brokerage firm in India with a variety of investment options.
ICICI Securities offer good support to both retail and institutional customers’. The commanding financial service provider in the country has over 20 lakh clients and offers “online investment and trading” services.
ICICI Securities (I-Sec) operates the flagship website, ICICIDirect.com and serves over 20 lakh customers. It is the first online trading portal in India that brought trading, online equity, commodity and currency trading under one login.
Apart from citizens in India, NRIs have greater participation and ICICI Direct has a record number of investors from different countries.
With the 3-in-1 account, you can probably perform all the transactions offered by the bank. For example, when carrying out operations of the equity management, you can do the following:
- You can use the cash at the time of purchase while buying and selling stocks from the Online Securities Platform.
- Systematic Equity Plan (SEP) offers you with proposed investment option. You can invest your money in stocks, index exchange funds and gold.
- VTC gives you the possibility to buy stocks according to your orders. You can place an order at a particular price. The validity of the order is 45 days. The execution of the order depends on the amount that the stated stock reaches within the validity period. This option is not available in HDFC Securities and is a major drawback.
Speaking about mutual funds, you will come across over 2,000 schemes that are available online. You can login to your account and invest online.
The online platform offers systematic investment, lump sum investment, switches, systematic transfers/withdrawals, redemptions and Target Investment Plan.
The online portal also provides you to research using the 200 views on the available mutual fund schemes. You can even receive capital gains statement from the portal.
You can use the account to invest in derivatives. Under this, you can choose Futures, FuturePlus, Options and Shares as margin. Futures give you high exposure to hedge funds, and FuturePlus offers the position to take intra-day position to buy or sell Futures and square them before the closure of the market.
The Options factor gives you the possibility to trade in stock and index contracts by defining a downside limit. By using the Shares as margin option, receiving additional limits and trading power in F&O is possible.
You can also invest in IPOs without any paperwork. In addition, you can use the savings account for the transaction across the 3,000+ branches across the country. You also get to access your account from mobile and internet, which are completely free.
ICICIDirect cash brokerage
ICICIDirect Future and FuturePlus brokerage
ICICIDirect Options brokerage
ICICI Depository service charge
For more details, check ICICI Direct here
- HDFC Bank
HDFC offers a secure, safe, and reliable 3-in-1 account that allows you to operate savings, trading and Demat account. HDFC Securities (HDFCSec) is the equity trading company of the bank.
If you already have a savings account with the bank, you can seek the assistance of the officers at the bank to link both the Trading and Demat account with the savings account, thus creating a 3-in-1 account.
The bank offers cash-n-carry option for both the BSE and NSE. Other options include day trading on BSE and NSE, trading on Futures and Options on NSE and IPO online investment.
The features of the account are its seamless transaction ability across all the three sectors. It reduces the movement of the funds across the three operations .
As the complete transactions are online, you will receive instant proceeds to all the choices that you make for the account. The bank also sends instant email confirmation related to the transaction and executions.
It enables you to record every movement of the operation carried out.
Rs. 999/- (It includes all the three accounts – savings, trading account and Demat account)
Note: It is essential to maintain a minimum balance of Rs. 10,000/- for Metro/Urban accounts and Rs. 5,000/- for semi-urban/rural areas. If you already own a savings account, you can link Demat and trading account to the same and receive 3-in-1 account status.
Charges for delivery based actions:
For further details on HDFC Securities, check here.
- SBI Cap Securities
SBICAP Securities Ltd. (SSL) is a segment of SBI Capital Markets Ltd. The institution offers services such as equity, retail trading, derivatives, brokering, DP services and e-Broking.
The website allows both Indian citizens and NRIs to login with their account and invests in equity, Shares, Derivatives, Mutual Funds and IPOs. The 3-in-1 demat/trading account offered by the portal allows you to operate savings, Demat and trading account with ease.
SSL provides the services under [email protected] You can access your Demat and Trading account even from your typical savings account. In addition to the market services, the portal is available for low bandwidth medium to allow trading and online access to the account from anywhere.
- Kotak Securities
Kotak Securities is section of the Kotak Mahindra Bank and offers a broad range of investment options. It is one among the private entities providing traditional broker services in India. Kotak Securities offers the trading facilities through website, trading terminals, mobile application, call & trade, and trading through banking branches.
Kotak is member of National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) and offers extensive services to both Indian citizens and NRIs.
It offers the Trinity account (3-in-1 account) that clubs the banking account, trading account and Demat account. The combination of the account gives you the ability to work with all the three at a single click and manage your wealth with ease.
The account also provides access to the Securities Academy, where you can learn about investments and stock markets. You will receive SMS alerts and read research reports on the economy, investment plans and companies that have a good role in the market.
Additional benefits include competitive brokerage charges, nil/low annual account maintenance fees. You can choose Call & Trade option to carry the investment in equity, IPOs and Mutual Funds. The After Market Order (AMO) gives you the ability to place orders even after the closure of the market.
- Account opening fees = Rs 750
- Annual maintenance charges = Nil
- Account opening charges = Nil
- Account maintenance charges = Rs. 50 per month for resident Indians and Rs. 75 for NRIs
- If the account has nil balance and nil transactions for a respective year, no maintenance charges are applicable.
Kotak Gateway (Fixed Brokerage) (* All charges are on both sides)
- Delivery Based Trades: 0.49%
- Intra-day Trades: 0.049%
- Futures Trades: 0.049%
- Options Trades: Rs. 100/- per lot or 1% on premium whichever is higher
Kotak Gateway (Variable Brokerage) (* All charges are on both sides)
- Delivery Based Trades Brokerages: 0.59% to 0.18% (For trading amount of ‘< 1lakh’ to ‘> 2 crore’)
- Intra-day Trades Brokerages: 0.06% to 0.03% both sides (For trading amount of ‘< 25 lakhs’ to ‘> 5 crore’)
- F&O Trades Brokerages (Intraday): 0.07% to 0.023% both sides (For trading amount of ‘< 2 crores’ to ‘> 25 crores’)
- F&O Trades Brokerages (Settlement): 0.09% to 0.032% both sides (For trading amount of ‘< 2 crores’ to ‘> 25 crores’)
- Options Trades: Rs. 100/- per lot
The following site compares details of demat accounts in greater detail. Click here
The 3-in-1 account is beneficial for a number of terms. It has smooth operation and gives you the freedom to transact with fewer hurdles. A prominent factor while choosing the operator is the credibility, service and investment options they offer. It is, as a result, necessary to understand the offering by each provider, the terms and regulations, brokerage charges and customer service rating.
The features listed above give you a fair idea and information about the account, brokerage charges and additional charges (if any).
Before you decide on a particular provider, ensure that you have compared the products and the features. It will enable you to zero in on the best institution in the market that offers quality service and support at all times. Hope our ideas on best 3 in 1 demat and trading account in India helped you.
Happy Investing! With which broker do you have your 3in1 demat account and trading account ? What is your experience. Please share for the benefit of the community.