If you are looking to invest your hard earned money in stock markets, the first and foremost step to take is to open a demat account, which is also known as dematerialized account. This is an account that is used to hold stocks. The value of this account is a lot important than other elements of stock trading. Now, when it comes to opening a demat account, all you need to do is to consult a depository participant (DP) who is authorized to collect the necessary documents and do all the formalities required for demat account opening. As the role of a demat account is of supreme importance, it is necessary to choose the best demat account provider in India for the best outcomes. 

If you don’t how to choose the best demat account in India, this post is particularly meant for you as it would help you understand each & every factor that could be held responsible for the selection of the best stock broker in India for Demat account opening. 

So, let’s take a look at the major factors that need to be considered before opening a demat account. 

  1. Ease in account opening

If you are looking to open the best demat account in India, most stock brokers in India follow a SEBI-approved account opening procedure which may involve the submission of various documents. Though most people consider it cumbersome, there are many stockbrokers that have switched to the tech-enabled way of account opening. For example, they allow their member to do the validation formalities by choosing the e-KYC process. In this kind of process, a stock investor needs to self-identify his documents electronically by using a video camera or in-person verification. 

In the case of e-KYC, the total time consumption becomes too low as compared to physical account opening. For example, one can open a demat account in just 2 days through e-KYC whereas in physical account opening, it takes nearly a week to do the process. 

  1. Trading Cost and Brokerage

The next thing to consider during your endeavour to open the best demat account in India is to look at the overall trading cost and applicable brokerage. If we talk about discount brokers in India, Zerodha tops the list being the best discount broker in the country. It has a standard brokerage system that is found to be quite useful for stock investors. 

There are primarily two types of stock brokers – full-service stock brokers and discount stock brokers. If you are a beginner, it is better to choose discount brokers like Zerodha, Groww, 5Paisa, Upstox, and others that not only provide low-cost account opening choice but also competitive brokerage. However, it is always a good idea to do thorough research before choosing a particular service provider. 

  1. Software and User-interface

In today’s digital world, most stock trading is done online as the days of a paper-bound stock broker is over. Today, almost all stock brokers make use of specialized trading software that can be used over desktops, laptops, tablets, and even mobile. This has promoted the concept of limitless stock trading anytime, anywhere. 

While choosing a stock broker to open the demat account, don’t forget to look at the trading software being provided, its features, advantages, drawbacks, and other things. The most important things in this regard are easy usability of the software, minimum downtime, and full-fledged customer support. One great option to check all this is to browse through various reviews available online. 

  1. Account Opening and Account Maintenance Charges (AMC)

When you open a demat account with any of the depository participants, there are two types of charged incurred – account opening charges and account maintenance charges. So, do take a look at both the charges before choosing a particular demat account service provider. Today, there are many service providers that levy zero account opening charges for the first years and start charging the customer from the 2nd year onwards. 

Similarly, do take into account the account maintenance charges that can be checked on the broker’s website and other avenues. Do a detailed comparison of the charges and then make a decision accordingly. 

  1. Analytical Tools

As we know that stock trading is primarily about correct decision making that further influences the gain and loss we incur. And this is where the stock analytical tools provided the stock broker play an indispensable role. It is always recommended to choose the best broker for trading that is known to provide advanced analytical tools that help the investors in precision stock analysis. 

Some of the popular online include direct call-to-action for trading patrons, domain concentration, real-time evaluation, analytics on Demat inflows/outflows, regular notifications, and thematic absorption, among other things. These are value additions, but as a stock investor, you must focus on these added advantages.

Conclusion

Though everyone wants the best in everything, it comes at a certain cost in terms of money, time, and effort, if you want nothing but the best demat account provider in India, get some spare time for market research. At a time when there are so many stock brokers available in the country, it becomes essential to look at all the factors for the best outcomes.

By Ahmed

 

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