Some valuable tips to choose the best Demat account as per your requirement

Some valuable tips to choose the best Demat account as per your requirement

We all these days are bending towards buying and selling securities because of high returns. Though high risks are involved in this, if one has the proper knowledge, can yield amazing returns. For easy tracking and monitoring of the securities, it is important for the investors to have a Demat account. The Demat account will help you with stock trading, derivatives trading, commodity trading, mutual funds, US stocks, gold and IPOs. You can easily go and visit any online website or the depository participant which is legally authorized and comes under NSDL or CDSL.

Just in a few minutes, you can easily open your Demat account. Make sure you have all the necessary documents and upload them. To open Demat account, first, you have to visit any website or any app and submit your mobile number and email account. Then you have to mention all your KYC details, they have asked for. Once you are done, the depository participant will verify all your documents and make sure all are valid to ensure transparency. In the end, you will get your BOID and here you are all done. Also, know that there are three types of Demat account. Those are- regular Demat account (for Indian residents), repatriable Demat account and non-repatriable Demat account (for non-resident Indians). So one should understand and then make a choice depending on their needs and nationality.

Following are some tips to go for when opening a Demat account:

  • Type of depository participant- Normally there are two types of depository participants- discount and full-time stockbrokers. The discount stockbrokers will only provide you with share trading and derivatives trading. Whereas the full-time stockbrokers will provide you with many other services apart from share trading and derivative trading which includes IPOs, mutual funds etc. So look for your needs and then choose the depository participant.
  • Fees and charges- Make sure to go through the fees and charges of every depository participant as the amount can differ accordingly. Usually, investors think that the fees are charged the same by all the depository participants but it is not so. So before signing in, give a close look at the fee section. It will help in preventing the additional cost at the last minute.
  • After services- The depository participant needs to have strong customer support and services to clear their doubts if any. The customers need to rely on their depository participants in case of any trouble.
  • Look for the features- Not all depository participants offers the same features. So look at the features first and then make your choice. Some of the important features are real-time stock feeds, portfolio details, analysis of the stocks and companies etc.

So above are some points which will help when opening a Demat account. Among many, ‘5paisa’ is a well-known and have huge customer support services with great trading technology which makes it easy for the investors to have a user-friendly experience.

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