5 Things to Know While Opening a Demat Account
Are you familiar with the word Demat? If not, then it is a savings account that offers a simple analogy. Almost every person might be having his/her savings account in the bank for making payments and withdrawing cash. In the same way, the Demat account holds the securities and the shares electronically. In case the person sells the securities, the Demat account is debited, and if the person buys the securities, the Demat account gets credited. So, to have this account, there are some documents required to open Demat account.
The account gets opened as per the guidelines given by SEBI. No doubt, the process is quite simple and fast, but there is a requirement to fill all the genuine documents electronically and meet the minimum eligibility criteria. So, if you want to start dealing in this account, you need to follow some of the things listed below:
- Type of brokerage: Before starting the use of a Demat account, it is important to know that there are two types of brokerage firms: discount brokers and full-service brokers. The discount brokers will help you to find equity and derivative trading services. But the full-service brokers provide full-time trading in different types of mutual funds, equities, futures, options, etc. You choose the brokerage facility according to the time you can invest in trading.
- Brokerage fees: Some fees need to be paid for the Demat account charges and the brokerage. Nowadays, many stockbroking companies and banks provide free Demat accounts, but their transaction fees can vary according to the buying and selling of the equities. It is important to maintain a proper check on the transaction charges.
- Simple and fast: Opening the Demat account is a simple process that can be done by just few clicks on the device. The entire system of the Demat account is electronic as the person needs to get the entire e-KYC and documentation process done online. All this work should be done according to the SEBI guidelines. The moment your account is opened, you can start trading in it.
- Seamless operations: The trading in the securities is a very seamless procedure; the delay for a single second can make a huge difference in the profit and loss to the person. So, it will be better if your broker provides you with a 2-in-1 Demat account. This will avoid the delay in the transactions. Even now, the mobile trading facility is also provided in the Demat account to track the prices of different securities properly.
- Trading platform: The person needs to choose the right trading platform. Nowadays, everything is available on mobile phones that have made the whole system much streamlined and simple. Do proper research while choosing both these things for better results in the future.
So, it is better to keep all these things in mind while opening the Demat account. 5paisa is a platform where your precious money will be invested in the best possible way to provide the maximum results in the future. Open the 5paisa Demat account and start your trading; they will provide you with all the right information at the right time to empower your investment.