With the rapidly increasing technology, the trading industry has also undergone a revolution. Online trading has become a popular option for many millennials around the world. Every other person is saving their incomes by investing in different places.
However, investing in stocks or bonds is a great option for multiplying your savings over time. Nowadays, online trading platforms and advanced trading tools have made trading more convenient and lucrative. To start online trading you need to follow some basic procedures such as opening a demat account online.
What is a demat account?
A demat account is a place where shares and other financial instruments are stored electronically. Dematerialization of physical shares into digital form is very useful for a trader, as it becomes convenient to store them in one place.
It reduces the risks of losses or theft, thus withdrawing a huge burden from the shoulders of traders or investors. Many financial instruments such as bonds, equities, mutual funds, government securities, etc can be stored in a demat account.
The process of opening a demat account is very easy and simple. However, there are few things that you should keep in mind before opening the demat account. Let’s talk about those things.
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Important things to keep in mind before opening a demat account
While opening a demat account, the trader or investor is required to submit important details and documents that need to be verified by the exchange. The PAN card is a mandatory document required to open demat account.
As the guidelines laid by SEBI, it helps to track the records and orders placed by the trader. Apart from that, identity proof and address proof are also required to open demat account.
Demat account charges-
There are certain charges associated with the opening of a demat account. These charges vary according to the policy of one depository participant to another. The charges included are-
- Account opening charges- The initial fee is for opening a demat account online. However, with certain DPs such as IIFL, you can enjoy the benefit of zero account opening charges.
- Annual maintenance charges- This fee is charged to keep your demat account functional so that you can avail the various benefits and services offered by your DP.
- Transaction fees- A fee is charged for executing trades in the stock market. It depends on several factors and offers provided by your DP.
Selecting the right broker-
Till now, you have understood that to open demat account you need to select the right depository participant. Selecting the right and suitable broker according to your requirements will substantially help you in rising strongly in the trading field.
The right broker will provide you the best services, discount brokerages, expert advice, research reports, and daily market news to teach you everything about the stock market. With a certain DP such as IIFL, you will be able to select the right stocks and earn maximum returns or profits out of them.
With the right trading platform, you can achieve a milestone in investing. If you want to be involved in intraday trading, it is mandatory to select a broker with the best trading platforms.
In intraday trading, every minute is crucial and with a highly responsive platform, you can make huge profits throughout the day by selecting the right stocks.
The trading platforms should be user-friendly, secure, reliable, and bug-free to ensure seamless trading.
Technology and trading tools-
Before opening a demat account you need to make sure that your DP is equipped with advanced technology and trading tools. The latest tools and user-friendly interface ensures smooth and faster transactions during trading.
However, security should be the utmost priority. Therefore, the trading tools should be highly secure and authenticated to avoid any discrepancy.
Customer support (Online and offline)-
While trading, many things can go wrong and you will need imperative assistance to resolve those issues. If you are using traditional methods of trading, you need to visit the offline customer support service of your DP.
Therefore, it is important to make sure you are choosing the right DP with online and offline support who are available for you anytime. Also, address your issues and resolve them in mere time.