Any person can invest in the stock exchange; the only condition is that there are certain formalities that have to be completed before you can start investing. The basic criteria before the process of buying, selling and holding any share can be done only after opening a demat account. A demat account is that account that is opened specifically for the purpose of share market. In this account instead of cash shares are held. When you buy a share it is deposited in your demat account and if you sell the share it is withdrawn from your account. Generally banks and financial institutions get this account opened.

There are charges for the demat account like account opening charge, yearly charge, and periodic charges for holding the demat account and service charges for the same. The charges differ from one service providers to others, but basically they can’t differ much as they have to follow certain norms.

If you want to do the trading in the stock exchange, then you have to open a trading account. The trading account has to be opened in any financial or banking institution. After opening the account you can do trading via phone, internet or transaction slips. The best way is through internet, if you have fast broadband connection. You can select any option for buying and selling while specifying the price. You will also have to pay brokerage and other charges like service charges.

The last is the bank account; it is must carrying out any financial transaction. A saving account will be good enough. After the opening of all the accounts, trading can be done in the stock market. It is very convenient to have trading and savings account in the same bank or financial institution as it facilitates transfer of funds.