What is the minimum investment required to start trading stocks in India?

By PriyaSahu

       The minimum investment required to start trading stocks in India depends mainly on the price of the stocks you want to buy and the brokerage fees. There is no fixed amount set by law. You can start trading with as little as a few hundred rupees if you buy shares of low-priced stocks. However, having around ₹5,000 to ₹10,000 as starting capital is practical to cover buying shares and brokerage charges.



How to Calculate Your Minimum Investment?

To find the minimum investment, first look at the price of the stock you want to buy. For example, if a stock costs ₹100 per share, buying 10 shares will need ₹1,000. You should also add brokerage fees and other charges like GST and Securities Transaction Tax (STT), which usually make up 0.05% to 0.1% of the trade value.

Many brokers allow you to buy even a single share, so technically you can start with the price of one share plus brokerage. But for practical trading, having a bit more money helps you buy multiple shares and diversify your investments.



Is There Any Minimum Deposit for Trading Accounts?

Most brokers in India do not require a fixed minimum deposit to open a trading or demat account. You can open an account for free or with a small initial payment. But to start trading, you must keep enough money in your trading account to buy shares and pay charges.

Some brokers may ask for a minimum balance to keep your account active, but this is not very common. Always check with your broker about their policies before opening an account.



How Much Should Beginners Invest?

Beginners should start with an amount they can afford to lose because stock trading involves risks. Starting with ₹10,000 to ₹20,000 is a good idea to practice and learn without risking too much money.

With this amount, beginners can buy shares from different companies to diversify and reduce risk. It also gives room to try different trading styles and understand the market better.



Factors That Affect Minimum Investment

Several factors affect how much money you need to start trading:

  • Price of the stocks you want to buy.
  • Brokerage and other transaction charges.
  • Minimum lot size in case of some stocks or mutual funds.
  • Your trading goals and risk tolerance.

Keeping these in mind will help you decide how much to invest initially and how to plan your trades.



Why Choose Angel One for Trading in India?

Angel One offers easy account opening with no minimum deposit and low brokerage fees. It provides user-friendly platforms for beginners and advanced traders. You can start trading with as little as ₹500 and access helpful research tools to make informed decisions.

With Angel One, you get instant account opening and support to start your trading journey smoothly. This makes it a great choice for anyone wanting to invest in the Indian stock market.



Contact Angel One Support at 7748000080 or 7771000860 for mutual fund investments, demat account opening, or trading queries.

© 2024 by Priya Sahu. All Rights Reserved.     

PriyaSahu