With Fyers you can open an Equity & Derivatives trading account and a Demat account (IL&FS). Let me make you familiar with all possible account types.
Types of accounts:
Fyers is a member of National Stock Exchange (NSE). A trading account enables you to trade in equity delivery, equity intraday, equity futures, equity options, currency futures and currency options. Our trading platforms allow you to transact seamlessly in the Indian stock market. We pay a lot of attention to user experience and we’re determined to deliver the best trading platforms and services to all our clients.
We offer online trading facilities where you get to trade through our desktop app (Fyers One), a mobile app (Fyers Markets) with data analytics and blazing fast quotes so you can execute trades on the go. Our latest launch is Thematic Investing, a platform which opens doors to a whole new way of investing in the stock market. In fact, it is a more effective alternative to mutual funds. Read more about it here. Point to note: You can invest using thematic investing only if you open a demat account.
A demat account is like a bank account except that instead of storing money, you store securities in a digital format. Securities are held electronically in a demat account, thereby eliminating the need for physical paper certificates. Whilst opening a Demat Account you would be required to sign the Demat Form and the Power of Attorney.
A Power of Attorney is a legal document executed by clients in favor of Fyers thereby authorizing us to operate the demat account as per the instructions given in it. It ensures a smooth experience. The POA executed in the name of Fyers is specific to that particular demat account only and does not extend to any other accounts which you may with other stock brokers in India. The POA is required to debit s hares from your demat account in case you decide to pledge it to utilize additional margins. We do not charge our clients any fees for this. Whenever there is a demat transaction, the depository communicates this through SMS at the end of day (EOD).
What you can trade:
a. – Here you can take positions (buy/sell) of shares of a company. If you take an intraday trade, you will need to square them off before the stock market closes or your positions will be auto squared off around 3:20 PM. If you take delivery of stocks then the trades will get settled on T+2 days.
b. – Trade equity F&O and currency F&O with your Fyers trading account. To trade derivatives effectively, you will need to understand the margin requirements (SPAN + Exposure margin) in your trading account. For more information, check out our Margin Calculators.
Settlements for F&O happens on T+1 day and the mark to market (MTM) gets reflected in your trading account. So profits generated by the client can be withdrawn only on T+1 & T+2 days for F&Os and equities respectively. Unlike most other stock brokers in India, opening a trading account with Fyers is free! However, since we are tied up with IL&FS for demat services, they charge a standard fee of ₹400 + taxes as upfront Annual maintenance charges (AMC). Apart from that, we do not charge for call & trade unlike other stock brokers in India. Learn more about the account opening process.
Things to keep in mind:
1. We advise you to either open a new demat account with us or link your existing IL&FS demat account to Fyers trading account to ensure that the process is smooth. As a matter of fact, It is possible to link your other demat account to a Fyers trading account, but when selling shares, you will have to go back to that stock broker. This can be a hassle and hence we recommend that you take our advice on this.
2. The documentation required to open an an account for individuals, partnership entities, HUFs and corporates are not the same. I will cover this in a separate post soon. We have answered several questions related to account opening in our FAQs. You can also seek clarification by asking us questions in the comment section below.
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Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.