HOW TO OPEN DEMAT ACCOUNT

what is demet account?

Demat Account or dematerialized account gives facility of retaining shares and securities in electronic format. During on online line trading, shares are offered and held in a Demat account, consequently facilitating an effortless exchange for the users. A Demat Account holds all the financial securities, such as share equity government bonds, mutual funds in one place 

There are three types of broker

1. Discount broker

2. Full-service broker

3. Bank broker

1. Discount brokers

The distinction between the two is the range of service and products they offer. A discount broker offers their service in low-cost brokerage and they save your 70% to 80% brokerage charges most of the discount broker is deal in the online mode they allow dealing in stock and some future o  if you have knowledge Discount brokers are good if you can trade on your own effect. If you need support in the form of selecting and advisory then full-service brokers will batter for you ex pro stock, zerodha, trade smart online, SAS online

2. Full Service Broker

 Whereas a full-service broker in addition to discount broker offers you lot service such as mutual funds, insurance, bonds, FD, demet account service or assets management and initial public choices (IPOs) ex share khan, motilaloswal

3. Bank broker

When bank playing the role of broker its called bank broker example ICICI direct, kotak securities, HDFC securities etc.

Few points you have to study earlier than opening a Demat Account:

Bank account

First, a bank account is vital to draw cash when you buy shares or obtain money when you sell shares. Second, a trading account is required, for sell and purchase shares online. Finally, you need a demat account, which works as a repository of shares offered and sold. The shares are in digital form.

Some brokers that are into banking industry they provide all three accounts,  at one place also recognized as 3-in-1 account, the place all these three accounts are linked in an easy manner. You would no longer have any difficulty in managing more than one accounts or navigating via more than one bills to transact in shares. All the banking broker provide 3-in-1 accounts.

Companies which are only in broking offer demat and trading account you have to open a new bank account or can use your present bank it is beneficial to open a new bank account entirely for trading purpose. This will assist you to manage the transaction. Using current account or saving account makes it difficult to manages because there are transactions other than purchase and selling of shares the retaining a separate account makes it a good deal easier account to attach with demat and buying and selling account opened with the broker. Few brokers have tied up with specific banks where they will help you open a bank account as nicely as demat and trading account.

 Demat accounts charges

Brokerage charges, annual fee, and different charges: Broking cost is the charge that you pay each time you buy or sell stocks. The broking fee is both in flexible or a fixed amount. For example, if the broking fee is 0.5 percent, you will have to pay 50 paise every time you buy shares well worth Rs 100 There are separate fees for trading in derivatives and mutual funds. Other than the brokerage, Customer support is an also vital aspect for selecting a broker. Good client assists create a fantastic surrounding for clean and healthy trading.

The annual fee is charged yearly. The rate can differ between Rs 500 and Rs 2,000 relying upon the brokers and service provided.

There are other fees such as demat costs (if you already have shares in paper or certificates format, the charge to dematerialize them is known as demat charges), ad-hoc account assertion charges, advisory fee, and alternative and future trading fee.

Trading software

Another necessary element to seem to be out for earlier than you open a demat account is the buying and selling software program that the broker offers and whether or not it is user-friendly. The unnecessarily elaborate software program will make buying and selling hard for you. Choose a broker that offers easy software and consumer interface to make investing easy each broker provides a demo for the software.

Trading Platform

Technology is also a vital factor in buying and selling platform: The trading platform or the website is of fundamental importance. Even although the investor opens a demat account based solely on the brokerage charges, technological know-how aspect of demat account must not be ignored.

A precise technological know-how platform has to provide you self-assurance and behave consistently, have to not be down at the time of trading, ought to be without difficulty navigable, and not take time in loading. In fact

,

Some Important points keep in mind

First, have in mind that investing involves your savings. Hence, you desire to be certain that you have entire control over the transactions and investment. Choose a dealer primarily based on the ease of transaction and high-quality statistics it provides. You can go to a number of brokers’ websites

Finally, a demat account offers you near-instantaneous get entry to to all kinds of information associated with the stock market. The rate of stock updates every 2-5 minutes. This has unintended consequences too. Investors get obsessed with brief term price fluctuations and take hasty or sub-optimal decisions.

Avoid being too obsessed with the momentary modifications in prices. Stock market fees are supposed to exchange each minute. There is nothing to be obsessed about it. Study a few organizations in detail, pick those meet your long term funding criteria, make investments in those, have patience, and see your wealth grow Stock broking have to be registered with SEBI and Stock exchanges such as NSE and BSE. They ought to display the registration number on their website

 Step Opening a demat account

1. If want to open Demat account you must be registered with a depository participant (DP), there are two depository participant (DP), in Indian govt first one is NSDL (National Securities Depository Limited) the second one is or CDSL (Central Depository Services Limited) websites.

images source quora.com

2. Just an investor opens a depository account with a depository participant in order to avail of depository facilities.

3. First chose depository participant for   verification you have to submit document such as proof of identity, address proof or Passport-size photograph, copy of the DP-Client agreement

4. Pay account opening charges. Pay account opening charges to your broker through net-banking or credit card

5. DP agent will contract you for the personification process Verification, you verify details furnished in the account opening form.

6. After the completion registration process, you will get an account number/ customer ID from the DP. Then details will be used to access your Demat Account online.

.

share this post :

Deepanshu sharma

HI friends I am Deepanshu Sharma is the person behind COMINGBLOG.COM I share with you some extra personal finance tips and helping you become financially independent,

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!