Things to keep in mind before opening a Demat account
When you’re playing dmintion, a badminton rocket, a shuttle cork and a net re respectively the most essential thing you need. Similarly while playing the stock market, the most essential thing you need, is a demat account. But what is a demat account? A demat account holds all your fiancial securities, in electronic form. Before you enter the stock market, it is important that you open a demat account. Opening a demat account is no major task, there are a lot of brokers tht can let you open your demat account for free or for a minimal amount.
Since your Demat account holds the details of the most important of your financial investments in electronic form, being concerned over it is natural. Therefore, you need to look at a few things before you open a Demat account.
Transaction of shares takes place through brokers. There are two types of brokerage firms- discount brokers and full-service brokers. A discount broker will allow you to trade only in equity and F&O, but a full-service broker will allow you to invest in personal finance, like mutual funds and IPO. Before opening a Demat account, you have to choose the broker you want to open an account with.
Every broker charges different fees and brokerage charges. But before you go for a partivular broker, it is important you understand brokerage charges, as well as account opening charges, very carefully.
Brokers provide different types of software. Before associating with a broker, you have to ensure that the software they use is user friendly and you are comfortable with it. Getting involved with a cluttered, technically complicated software will make trading difficult for you.
While trading, there will come a point when you will need your broker’s assistance. Make sure the broker you associate with, provides quick support. Check about the back end support provided by the broker and the accessibility of the customer support team.
Find a nominee
In case of your demise, all your investments go to your nominee. Thus, before you start trading, make sure you have a nominee who is aware of your investment goals and can take your investment forward, in case of any mishap.
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