Demat accounts or Dematerialised accounts and Trading accounts are a basic pre-requisite for online trading nowadays. There has been a huge increase in the number of Demat and Trading accounts in the last decade, and the popularity of Demat accounts is expected to rise even more. There are a number of firms which offers Demat accounts, and any prospective new online stock trader will surely be puzzled on the choices and features that are available to them. The major firms offering demat accounts in India are:
- Angel Broking
- ICICI Direct
- Kotak Securities
Each of the above-mentioned firms offers Demat accounts with many attractive benefits and low brokerage rates. It is up to the customer to choose the firm and demat account which is preferable.
There will also be a question of How to open Demat account/how to open Demat account online. Well, it is very easy and less time-consuming. All you need are two passport size photos, a valid ID card, PAN card, and Aadhaar Card to open a new Demat account. The process is fully paperless, and you will receive your account after verification which takes about a week. There are also links in all major firms offering demat accounts on How to open Demat account/how to open Demat account online where assistance is provided to open demat accounts or provide information about various types of demat accounts that they offer. To know more about demat accounts click here.
The things to consider before starting a demat account are:
- Make sure that your stockbroker is registered with SEBI.
SEBI or Securities and Exchange Board of India regulates the stock market and trading activities in India, and it is necessary for your stockbroker is registered with SEBI. It is easier to the complaint against your stock broker in case of any fraudulent activities if he is registered with SEBI.
- Make sure that your stockbroker is a Depository Participant.
Depositories are the institutions which store your securities. Every Demat account is opened with a depository, and the major repositories in India are NSDL and CDSL. If your stock broker is a Depository Participant, then he can assist you in demat-related issues and process your transactions faster.
- Compare the Brokerage and Demat charges.
Each and every firm has different brokerage rates and demat charges. Many firms offer free demat accounts, but there are other fees included such as annual maintenance charges and charges for physical receipts and statements. Both NSDL and CDSL levy charges on certain cases.
- Customer Care Facilities.
Most of the firms which offer demat accounts have trained employees and personnel to deal with customer complaints. They work seamlessly around the clock to offer the best services to the customer. You should also consider the time taken by your demat account firm to process your transactions to choose the best firm available to you.
- Ensure that both your demat account and trading account are with the same firm.
It is preferable to have both your demat accounts and trading accounts with the same firm as it makes the transfers faster. If not, there will be delays and bad deliveries which can cost you valuable time and money.
- Complaints against the company
Make sure you check out the complaints against the company which is a clear indication of the companies shortcomings. It will guide you to know which firm offers best customer satisfaction.