People often get confused in selecting the best Demat account for them. Several options make them nervous and questions pop up in their mind that How to choose the best Demat Account. Here is the complete list of tips to choose the best Demat account before starting to trade.
1 – Demat account and trading account at Same Place
Open Your Demat account and trading account with the same stockbroker or depository participant (DP) to get quick access and hassle-free trading. It is not mandatory, but for your ease and convenience.
Nowadays, brokers open trading-cum-Demat accounts so no problem arises. It will be a problem when your broker does not have a DP license and you need to submit a DIS slip while selling your shares. Because the debit instruction slips (DIS) get postponed, it can bring about short conveyance and lead to selling misfortunes for you. At the point when your broker and DP are the same, this whole interaction becomes basic and consistent.
Also Read: Where to Open a Demat Account?
2 –Depository Participant Portfolio
You can go through Depository Participant Portfolio before choosing a Demat account. In Depository Participant Portfolio, you will find client testimonials, their success stories, and their work history along with projects and brands name.
3 – Brokerage Charges
Always select the stockbroker who has the lowest brokerage charges for futures and options, commodity trading, equity, and mutual funds.
4 – Demat account charges
Demat Account Opening charges should be low as possible. Many stockbrokers and depository participants (DP) also provide Free Demat Account Opening like SMC Global Securities.
5 – Demat account opening procedure
Demat account opening procedure should be easy and simple with the least paperwork. Many people are not very familiar with technology or not the tech pro like our grandparents so for them if account opening will be smooth then it will be convenient to access for all age of people.
6 – Intraday trading
Intraday trading is buying and selling your stocks on the same day and for every buying and selling transaction you have to pay brokerage charges. So if you are a frequent intraday trader then you should seek out the broker or depository participant whose brokerage fees are less or minimal while maintaining their quality service.
7 – Learning resources
Many DPs offer a Learning Management System and their Premium Video Tutorials which carry the best tips and tricks of trading for investors so that investors ace in trading.
8 – User interface of the trading platform
Cheap brokerage and service pricing plans diverts trader mind and traders forget to check Trading Platform Interface. But traders have to take everything simultaneously. Like we check features and performance before buying any vehicle similarly, we also need to check features and interface of a trading platform before choosing a Demat account so that you do not stick anywhere while trading or investing. An excellent trading platform will affect in making worthy investment decisions.
9 – User interface of the trading platform
Must compare the prices of depository participants including other service prices. All services also should be affordable along with opening a Demat account, Demat account maintenance, and brokerages charges.
10 – Quality and Services Comparison
Quality Check of Products and services are also mandatory before stepping into the trading world and the comparison of services with others before establishing relations with depository participant DP will also be beneficial for you in long term.
11 – Depository Participant, Stockbroker, and Company History
You can check Depository Participant, Stockbroker, and Companies history that how many users associated with them, how many projects they did so far, and their awards and recognition.
12 – Users Feedback and Online Reviews
Users who already took or taking the services can give you the recent, live, and practical experience they had with their respective stock brokers and depository participants (DP).
13 – Social Media Platforms
You can go through the firm’s Social Media Platforms as well so that you get an idea of their DP’s online reputation and other vital information.
14 – Website
A website shows the image of every firm or company, from where you check their services, products, and contact details of the company.
15 – Investment services
Many DPs provide investment services, financial advice, Dedicated RM, and free webinars to their clients. These facilities work a lot for traders. You should check if your DP offers these facilities before you choose to open a Demat account.
16 – Annual Maintenance Charges
Annual Maintenance Charges are also the most important parameter to check upon because every year you need to pay the bill for yearly maintenance called AMC.
17 – Excellent customer support
Always choose the Demat account that provides excellent customer support. They listen to your every problem, resolve your issues quickly, and contact you from all means by email, phone, and chat.
18 – Data Analytics
Data Analytics Service plays an important role for investors and therefore, it is a significant criterion to choose the best Demat account. Because DPs provides research work by analysis like real-time evaluation, direct call to action requests for trading clients, analytics on Demat inflows/outflows, timely alerts, and thematic concentration, among others. These analyses are coordinated with outer factors too which gives a significant impact on the performance of trading such as social, news, and economic trends within the economy which helps in taking the best decisions for trade.
19 – Certificate Transfer Process
Dematerialisation and Rematerialisation of shares is an every trader need who does trading frequently. So make sure your DP provides the smooth, quick, and efficient process of Dematerialisation and Rematerialisation of shares.
20 – Availability of Mobile Apps
Mobile Application makes trading easy and smooth because the investor does not need to depend on the website all time, Working on websites you always need to open your laptop or computer which are not always handy and when you do trading then you should have a minute to minute awareness of market while driving, doing household chores or your daily routine work.
21 – Own Tools
A good reputation companies, stockbrokers, and depository participants developed their APIs and tools which give advanced market analysis. Investors don’t need to go here and there for any software requirements. No need to ask anything from anyone and no dependency on anyone for anything. The investor will get their resources and tools to research.
22 – Day trading Square off Timing
At end of the day, every intraday trader needs to square off the position. If not, then the stockbroker initiates himself. Thus, discover the timing of such an initiation. It is typically a couple of hours before the market conclusion. Thus, you need to check whether positions will be squaring off at 2.45 or 3.15.