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How To Buy Shares Online Without A Broker In India?

How To Buy shares Online

Yes, one can buy shares online without taking help of a stock broker. How? First, one needs to understand the basics. Having a personal stock broker can assist and guide its client according to business sense. But, aren’t they costly? Also, how should one know that the broker is not guiding only for its own personal gains?

Such thoughts can obviously come to a client’s mind. In that case, they may want to buy shares online without a broker, i.e., by following the Direct Stock Purchase Plan. How? Let’s find out now.

How To Buy Shares Online Through Direct Stock Purchase Plan

A Direct Stock Purchase Plan is an alternative method to get rid of stock brokers and buy equity shares online, directly from a firm. Through this method, a client can buy shares online without a broker. These programs were created years back as a method for companies to allow smaller investors to purchase equity directly from the business.

While buying shares through a brokerage firm, the broker acts as the middleman. But, by following the DSPP, one can eliminate the charges for an investor. Similar to the brokerage model, investors commence direct stock purchases by transferring funds from their savings accounts. This fund is then utilized to acquire shares.

Advantages of DSPP

advantages of dspp

1.     Cost saving

One of the major benefits of direct stock purchases is the money the investor can save by avoiding brokerage fees. Additionally, businesses can offer price reductions and dividend reinvestments.

2.     Provides a simplified purchasing experience

There are several factors to consider while selecting a broker. One must determine, among other things, the degree of security, the amount of tradable assets, the minimum capital need, and the available payment methods before they can buy shares online.

Thus, finding a broker who fits the requirements of the investor makes the process difficult. When buying shares directly from the firm, no such procedure is to be followed.

Disadvantages of DSPP

1.     Hidden fees

DSPP may involve hidden fees. Although the process appears as if there are no extra charges to be paid, a major disadvantage of DSPP is that investors will have to pay a certain charge for every investment they make.

Had the investor opened an account with a broker, such charges would have been cut down.

2.     Not appropriate for short term traders

For traders who have a tendency of popping in and out of the market, this plan is not the right fit for them. A stock that has been purchased from a particular company prevents short selling and disrupts the short-interest ratio. Thus, the chances for shares turning in favor may reduce.

3.     Less diversification of shares

The choices for diversifying an investor’s portfolio are limited by direct stock purchase plan. Investors who purchase through a brokerage have access to securities that can be traded on the broker’s trading platform. But, the investor can only purchase one kind of share from the corporation through DSPP.

Secondly, using this approach to buy shares online restricts the investor’s alternatives because not all companies offer DSPP.

4.     More number of accounts

Investors, who buy shares online through the DSPP, lose their ability to hold all of their stock holdings into one single account. For every stock they buy, their accounts shall keep on increasing.

There are several pros and cons of Direct Stock Purchase Plans. This plan is only applicable if the investor decides to buy shares online using the traditional way. But, if the investor wants a more reliable and convenient way of investing, it should approach a full-service broker.

Is choosing a broker the right choice?

Is choosing a Broker the right choice?

SMIFS has been a reliable stock broking firm since the last 30 years and has a large clientele of more than 10,000 along with HNIs and NRIs. As a full-service broker, SMIFS is among the best financial intermediaries to invest in shares. It has a large research team that offers its clients with daily stock recommendations.

1. Unlimited Call-N-Trade services-

SMIFS offers unlimited call-n-trade services to its clients. Thus, investors can contact their Relationship Manager (RM) several times for getting better trading decisions.

2. Local Broker-

Unlike most stock-broking firms, SMIFS has branches in more than 30+ cities. Thus, users who are unable to resolve an issue online can contact the branch for better understanding.

3. Free research calls-

Over the years, outperformance in financial services products has been greatly depended on research. We have a group of research experts that provide trading recommendations for futures, options, and derivatives.

4. One platform, several investment goals-

All the services for equities, derivatives and Mutual Funds are available on a single platform. Thus, depending upon the risk-taking capability, an investor can start investing in any of these financial instruments.

5. Dedicated dealing desk-

Our dealing desk offers one-time solution to its clients. Investors can always reach out to our associates for queries that need attention.

Our firm provides free demat account to our clients which is one of the best ways to buy shares online that charges a very low brokerage. The Securities market is subjected to market risks. Thus, handling it on its own can be unsafe for investors. Instead, choosing a depository participant that is registered under a depository (NSDL and CDSL) makes investing more reliable and safe.

Contact us at 9830121215 or e-mail us at for further queries.

Happy Investing!

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