If you are interested about Share market either for investment or trading purpose, then you must need a demat account and trading account. So before going to open demat account it’s very important to know , where you should go for demat account ? First we will talk about demat account . what is demat account ?
In this article I will discuss about the basic terms you must consider before opening an account, these are very-very important, we will focus on these terms one by one:
- What is Demat Account
- What is Trading Account
- Safety on your investment
- Account opening and annual maintenance charges
- User friendly platform
- Required documents to open your Demat and Trading account
What is Demat Account
For a new person the first question would be “what is demat account ” ?Demat account is similar to a bank account which you open in a Bank or with a third party broker.
The only difference is that in your bank account you keep your money whereas in your demat account you keep your shares in digital form.
Similarly , trading account gives you an extra feature, where you get a trading platform, where you can buy and sell shares. You can open both at the same time by submitting your documents to your broker.
You don’t have to pay separate charges for these account, almost all brokers provides demat and trading account together.
Some people only go for demat account, but if you want to buy and sell buy your self and also want some trading, then you must need the trading platform.
Safety on your Investment
This is one of the major point you must think where you are going to open your demat account.
Are they reliable ?
Are they providing safety o your investment ?
Because , suppose you have invested your money with a small brokerage firm and they got bankrupt, then it would be very difficult to retrieve your money .
That’s why you must think about top broker’s of your country , who are well knowned , reputed and reliable. Because they are efficient to handle any kind of volatility.
How much brokerage they are charging ?
This is the second major point you must think , how much brokerage they will charge ?
Most of the traditional brokers still charge very high like 0.50% or more on your traded value,
For example suppose if you bought some stocks of 100K rupees then your brokerage would be around 500 rupees, including these charge you also have to pay to your Exchange and Sebi .
It doesn’t matter you get profit or loss. That’s why here we suggest you discount broker, in broking industry they come as a game changer, where the traditional broker charges very high they fixed the brokerage rate 20 rupees per trade for buy and 20 rupees for sale, it doesn’t matter your buy the stock of 1000 rupees or 100K rupees , you only have to pay 20 to buy and again 20 rupees to sail.
That’s why discount broker is more preferred bet over traditional broker, here are some name of top discount broker — Zeordha, 5paisa, SAS Online, upstox etc.. Among them Zerodha is the leading broker with highest no of clients.
To open account with Upstox go to the link Open Demat account.
Account opening & Annual Maintenance Charges
Now this is the third major point, how much your broker is charging you at account opening time, this is the one time pay amount. And what are the annual maintenance charge that you have to pay on yearly basis, you can compare it with different brokers.
User friendly Trading platform
This is again one major point that you should focus on specially, if you are a trader. Always choose a broker which provides you a good and user friendly platform, enriched with all major leading indicators, that will help you to analyze market trend.
Required Documents to open a Demat and Trading account
After all these research and analysis, if you have choose where to open demat account, then you must have these documents
- Pan Card
- Identity Proof and Address Proof
- 6 month salary slip or bank account statement
If you have Net banking or UPI then it’s very easy to add money to your demat account.
So in here in this topic i have tried to cover a detailed overview and all the important points, so here our recommendation would be Zerodha.
To open an account you can go to the link “Demat Account”.
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