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How to Choose the Best Demat Account
In the financial year 2021-22, there was a 63% increase in the total number of active Demat accounts in India (CDSL & NSDL combined). This is more than twice the number from pre-lockdown days and demonstrates how retail investors are leveraging the stock market to increase their passive income.
A prerequisite to trading in the stock market is to open a Demat and trading account. But with a large number of brokerage firms offering such services, it can get quite confusing and overwhelming to evaluate which is the best Demat account. But not anymore. Here is a guide to help you understand how to choose the best Demat account in India.
5 Key Deciding Factors for Selecting a Best Demat Account
In your quest to identify the best Demat account, you must consider the following key factors.
Brokerage, Trading Costs, and AMC
- Different brokers levy different Demat charges. The pricing models may vary from per trade to a percentage of the trade value. There may also be platform usage fees and Annual Maintenance Charges (AMC) that you need to clearly understand before finalising on a Demat account. But with m.Stock Zero Brokerage proposition, you can place unlimited free trades on equity delivery, mutual funds, IPOs and the best part is AMC is also zero.
Account Opening Process
- Choose brokers that offer an entirely online account opening process (including e-KYC). This saves you time, effort, and paperwork.
UI and Trading Platform
- All your transactions will occur through a trading platform, provided by the broker. So, always look for a trading platform which is superfast with advanced features and tools yet has a simple user interface.
Pay Later (MTF)
- While choosing best Demat accounts, look for value-added services like Pay Later (MTF). MTF allows you to trade even when you are low on funds, so you don’t miss out on any lucrative opportunities. m.Stock offers the lowest interest rate of 6.99% p.a.
Excellent Customer Service
- Customer service is crucial, especially for new investors who need hand holding. But even expert traders need technical support, which requires an alert, quick, and responsive customer service team.
There are several firms in the market for you to choose from, but if you look at these key factors, then m.Stock from Mirae Asset ticks all the right boxes.
The entire account opening process is online and achieved in a matter of a few minutes.
With a super-fast yet ultra-secure and stable platform, you will never miss a trading opportunity.
With the latest charts, live updates, and other analytical tools, you will always stay ahead of the crowd in finding the right stocks to trade in.
So, join 15 lakh+ smart investors and open an m.Stock Demat account equity delivery, mutual funds and IPOs.
Read Also: What are the Features of Demat Account
Read Also: Eligibility criteria to open a Demat account
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FAQ
Can I trade directly on the stock market?
According to SEBI rules, investors cannot trade in stocks directly. They must compulsorily open a Demat account with a SEBI registered broker, which needs to be linked with their trading and bank account.
Does a Demat Account need to be opened by physically submitting documents?
While this has been the traditional approach and the option is still available, the best online Demat account providers, like m.Stock, allow its customers to complete the entire account opening process digitally. At m.Stock, the entire eKYC process is managed online by uploading documents and the process is quick (takes less than 5 minutes) and hassle-free.
What are the documents required to open an m.Stock Demat account?
m.Stock requires bare minimum documentation to complete the KYC process under SEBI guidelines, like:
Identity Proof: PAN card/Aadhaar card/Passport/Voter ID/Driver's License
Address Proof: Aadhaar card/Passport/Voter ID/Driver's License/Utility Bills (Telephone, Electricity, etc.)/Ration card
Income Proof: ITR copy/salary slips or account statement for the last 3 months
Bank Account Details: Cancelled cheque/copy of bank passbook.
How is the m.Stock Demat account pricing model different from others?
m.Stock offers a free Demat account opening with zero brokerage across equity delivery, mutual funds, IPOs and ETFs. In addition AMC charges is also zero. You will only pay ₹219 + GST per quarter for operating fees.
Can I have more than 1 Demat account?
Yes, indeed. You can have multiple Demat accounts in your name. However, it is not permitted to have more than one Demat account with the same DP or broker. Furthermore, every Demat account needs to be linked to the holder’s PAN for tracking.
