Re: new cheapest broker is here. Zerodha
Got a doubt...
There is a discussion about opening demat account.
Should we open demat account cum trading account with you?
If yes, why can't we link our existing demat account?
Here you were saying, no demat needed if we are do only day trading in cash and trading in derivatives...
Do we get exposure/leverage for day trading (we don't have demat with you)?
Note: This question is not meant to zerodha alone. Since you represent a broking firm (zerodah), we are asking. Anyone who represents any other broking firm can reply or inform us...
If you already have a demat account and don't intend to do delivery based trading, then you don't need to open an account with ILFS. Even if you don't open demat, you will get the leverage to trade intraday in cash. For trading derivatives there is no role of a demat account as the positions you take in f&o remain in the trading account.
Note: When you take a delivery position, on T+2(settlement cycle in India) the shares have to be settled into the client dp account. If you open an ILFS with us, it will go sit there. When you sell the same position, since ILFS is our partner, the shares are debited from the ILFS account and delivered . But assuming you link any other demat account(say karvy), we will not be able to debit the shares from your (karvy )dp since we can't partner more than 1 dp.
So basically, if you want to do delivery based trading through us, we would need you to open an ILFS demat account.
In case you don't intend to do delivery based trading, we can link the zerodha trading account to any of your existing account. You will get leverage to trade intraday, leverage to trade intraday futures and any other such features we offer....
Cheers.....