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Investing in the Indian financial market requires a demat account. The demat account holds your shares and securities in an electronic form. Demat account has eliminated many risks and hassles that were involved when shares were held in form of physical share certificates.
Most of the people know that the demat account can be opened with any broker or depository participant. However, not many people know about the things to consider while opening a demat account.
In this article, we list down a few points which will be useful to you in selecting the best demat account.
How to Choose the Best Demat Account?
#1. Account Opening Process
Opening the demat account is the first and foremost thing to do in order to participate in the Indian financial markets. You must check about the account opening process at the depository participant to know whether it is simple and easy.
SEBI has laid guidelines on how to open a demat account but there are certain services that the broker can provide and make the process simpler.
You must understand whether the account can be opened using the e-KYC process with Aadhaar card data authentication.
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#2. Cost of Demat Account
While selecting a depository participant for opening a demat account, you must always compare demat costs of various competitors.
Demat account has many charges associated with it like brokerage charges, annual maintenance charges, depository participant services charges, etc. You must always select that broker who offers you the lowest costs without any compromise in the quality of service.
#3. Tech Specs of Demat Account
The modern era is all about technology and your demat account must have the latest technology features for a seamless experience. Check the functioning of 2-in-1 or 3-in-1 account i.e. demat, trading and banking account services of the depository participant.
Enquire about the smoothness of carrying out transactions, the speed at which fund transfer is done, etc. There should be a seamless interface between banking and broking services. Select the depository participant who offers and delivers you the smartest tech solutions.
#4. Service Standards of the DP
Before you finalize any depository participant in the market, it is important that you check their service standards. Check for the time taken by the depository participant to dematerialize your physical holdings. Check whether the corporate benefits are automatically updated into the demat account.
Another important factor to consider is the time taken by the depository participant to resolve any problem. You can check with the clients of the depository participant and know their service standards.
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#5. Additional Online Advantages
These days, the depository participants are increasing their online add on services to the clients. You must check whether the depository participant provides you services like real-time portfolio valuation, timely online alerts, single touch trading facility, thematic concentration, industry concentration, etc.
All these additional online services enhance user experience and add value to your demat account.
#6. Reputation of Depository Participant in Market
Last but not the least, you should look for the reputation of the depository participant in the market. Understand the perception of customers and normal people about a particular depository participant.
You must avoid opening a demat account with a depository participant who has lot of pending complains with SEBI. This suggests lack of quality of the depository participant. You can see the view of the people about a depository participant on social media. However, you must be careful because social media often hypes things.
By analysing the image of the depository participant, you will surely not end up opening a demat account with a wrong depository participant.
Wrap Up
The above mentioned are a few of the points that you must consider to select the best demat account.
Many top companies are known for providing the best demat account services. Right from there seamless services to their image among the clients, they fulfil all the conditions to be the best in the market.
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