Factors to Consider While Opening a Demat Account

A Demat account becomes imperative to purchase and sell securities. You need to invest in the best Demat account to invest as well as trade-in derivatives, equities, bonds, debentures, and exchange-traded funds. When it comes to opening a Demat account, there are certain factors that you need to consider. And in this article, we are highlighting those important facets – 

 The Ease of Opening an Account

The process of opening a Demat account should not be complicated and lengthy. While SEBI has written a detailed guideline with regards to opening this account, the brokers should streamline the process for you. 

Choosing a reliable broker would make your process easier by offering a digital platform. This will allow you to carry out all the steps digitally.

Fees and Charges Levied by Broker

Brokers’ fees for opening a Demat account vary among the brokers. Although a majority of them offer free Demat accounts, you still have to pay transaction fees while trading in equities and other digital assets. 

Along with transaction fees and account opening fees, also consider the maintenance fees a broker charges annually. Transaction charges different significantly across various brokers. So this is something that you should not overlook. 

Brokerage Type

How to open Demat account in India? You need to associate with the best broker. There are two types of brokers – full-service brokers and discount brokers. 

A full-service broker offers comprehensive and efficient trading and investing services in equities, futures, mutual funds, currencies, options, commodities, etc. Moreover, you also get advisory and management services, along with various research reports. 

Discount brokers, on the other hand, only focus on what you tell them to do. Basically, their operations are restricted to providing core trading services. 

Efficient Operations

The brokerage firm you choose should be able to provide a seamless trading experience. Even the slightest delay in the decision-making process can make a significant difference between your gains and losses. 

Look out for brokers who extend a two-in-one account. This will considerably help you in avoiding lag. With this account, you will be able to seamlessly invest and trade in equities, currencies, commodities, mutual funds, derivatives, etc.

Moreover, if you want to keep track of all your trades, consider choosing a broker that offers a mobile app. This will allow you to invest and trade while on the go. 

Nominee

In case you die, all the investments will be transferred to your nominee. You will have to mention someone as your nominee while opening an account. The person you have selected should be aware of your investment goals and should be able to take your investment forwards to accomplish the goals. 

Support Services

You might experience some pitfalls while making transactions from your Demat account. A brokerage firm should have a strong customer support system instilled with both technical and non-technical professionals. Strong back-end support will allow you to get an instant solution to your issues. 

Presently there are more than 500 brokers in the country that claim to offer the best Demat account. It is up to you to consider important factors that can choose a broker that caters to your needs in the most effective way.