How to select the best Demat account online?
When you are planning on investing in the trade market, one of the first things you need to do is apply for a Demat account. Like in every other sphere of life, you should never settle for mediocrity. Even though a Demat account looks like a plain vanilla account, it requires a lot of homework and planning before you choose a Demat account. Lucky for you, we have narrowed down some points to help you select the best Demat account out there. But first, let’s talk about a Demat account and how to open a Demat account online.
Short for dematerialized account, a Demat account is one that stores all your shares and securities in an electronic format. This ensures that your securities are safe and easily accessible. To open a Demat account, you can choose from a plethora of DPs, such as Motilal Oswal, that are affiliated with depositories like NSDL and CDSL. You have to fill up an account opening form and submit required documents like Identity proof, address proof, PAN card, etc. In-person verification is required afterwards. Post the successful validation you are provided with a Demat account number or client ID which can be used to access your Demat account.
How to choose the best Demat account?
Below are some factors that you must consider before selecting a Demat account.
- Compare the Demat Account charges:
Before you select a DP, make sure you compare the cost with that offered by the competitors. Most of the DPs offer a free Demat account, but that doesn’t include all the charges. Sum up all the charges like annual maintenance charges, transaction fees, custodian fees and select the most economical one.
- Keep Trading and Demat account in the same place:
This is not a necessity, but having your trading and Demat account with the same DP/Broker is quite efficient and is also referred to as a 2-in-1 account. What it does is provide a seamless interface between your Demat and trading account. When your broker and DP are the same, the whole process of investing becomes smooth.
- Online Analytics:
Selecting a DP which provides analytical data is quite crucial. Stay informed about the data analytics like real-time valuation, direct call to action requests for trading clients, analytics on Demat inflow and outflow, timely alerts, dominant market players, industry concentration, thematic concentration, consolidated portfolio outputs among other things.
- Check the service standards:
At the end of the day, it is crucial that you judge a DP based on the quality of services it provides and its reputation in the market. A DP that takes care of small hygiene factors is worth opting for.
Motilal Oswal is one of the best DPs out there and guides you well on how to open a Demat account online. Their process is extremely straightforward and takes only 15 mins. It also has an online share trading app that is extremely efficient.