Compare Demat Accounts before Opening a Account

                  

                           Compare Demat Accounts | Image Resource: freepik.com

 Demat accounts are used to store the shares when you trade online. The demat accounts are opened in the depositories. The depositories monitor and maintain the demat accounts. The broker offering depository services have the authority to open the demat account for the clients.

There are different brokers and each offers different features. You should compare demat accounts features and charges before choosing a broker. There are various points to consider before choosing a broker. The points are as follows:

• The trading platform offered by the broker should be user friendly. The technology used should be the best. Check if the broker offers web, mobile and desktop based trading platforms.
• There should be active support offered through phone, email and chat. The support term should be ready to answer the queries of the clients anytime.
• The brokers should offer different brokerage plans for the different trading needs. You should be able to find a brokerage plan that suits your financial needs.
• You should check the experience the broker has in trading. You should be sure your investments are with the right broker.
• The transaction cost should be low and you should be able to do fast transactions.
• The broker should not trade on your behalf without your consent.
• The broker should offer highest intraday exposure for you to take the right decisions.
• Check if the broker offers online trading mobile app.
• Check the account opening and the account maintenance charges you have to pay.

Demat account opening process To open demat account you have to fill the account opening form. The form can be couriered to you by your broker for a fee. You can request the form online and get it via email. Most of the brokers offer the facility to print the form form the portal.

The documents to be submitted with the form are a self-attested copy of the PAN card, a coloured passport sized photograph, address proof, a cancelled cheque and last six months bank statement.

The exchange requires the brokers to do an in-person verification for which you have to be present. If your forms are proper according to the KYC norms the account is made available to you within three working days from receiving the form. 

Purpose of the demat account

When you trade online the demat account is used to store the shares. When you buy shares form the share market the shares are credited to your demat account. When you want to sell shares the shares are debited from your demat account.