What is a Demat Account? Best broker for your Demat Account according to your requirements.

In my last blog, I told you the basic requirements to start investing in India. And in this blog, I'm gonna discuss what is a Demat Acco...

In my last blog, I told you the basic requirements to start investing in India.

And in this blog, I'm gonna discuss what is a Demat Account & benefits of it. Also, I will discuss the best broker for you as per your requirements, so you must read the whole blog.

Let's get started.

⦿What is a Demat Account?

Answer.    A Demat account is an account to hold financial securities in electronic form. It's a dematerialized account where you can hold financial securities like equity or debt or other things.

In layman language, it's an account that records all your trades in the stock market, debt market, commodities, and other financial markets. Just like your bank account which holds your money and also you can transfer it to other bank accounts or any other platforms.

The Demat account helps you to easily share transfer, loan collateral, speedy e-facilities, etc.

In India, Demat accounts are maintained by two depository organizations: National Securities Depository Limited(NSDL), Central Depository Service Limited(CDSL).

⦿Best Broker According To Your Requirements:--

These days there are too many brokers by whom you can easily open your Demat account, but are they really match your requirements?

There are lots of brokers like:- Zerodha, Paytm Money, 5paisa, Groww, Upstocks, Angel broking, HDFC Securities, Motilal Oswal, Kotak Securities, Bajaj Finserv, etc.

Some of these brokers are discount brokers, some full-service brokers.

Now, these discount brokers give you some additional benefits like zero account opening fees, zero account maintaining fees, close to zero brokerage, and online account opening via e-KYC. But that's not mean that they don't have any limitations or flaws. With these discount brokers, you don't get all the access like in some broker's Demat accounts they only give you the options to trade-in equity or equity with futures & options or in commodities. So there are these kinds of limitations.

But with the full-time broker, you get full access to the market- equity, currency, commodities, F&O, etc. But some of them charge high brokerage, high maintenance charges, additional platform charges for their premium services.

So you must know in the first place that which broker is best for you, or you will earn fewer profits for these charges.

⦾ If you are a rookie in the share market and just want to observe the market first and want to start with a low amount and want to speculate the share market then you can go with HDFC Securities and you can open a free Demat account without any maintenance charges, also you can trade equity, commodities, F&O. But if you want to become an intraday trader then you need some extra equity intraday margin but here you only get 4x margin that is not enough. Or you can use Groww where you get free account opening, no yearly maintenance fees, low brokerage, and up to 8x equity intraday margin, groww will also bring US stocks investment options in near future, also you can invest in mutual funds, digital gold, but here you also see some limitations like in this Demat account you can only trade equity, no other options.

Or you can use Zerodha or Angel Broking or Motilal Oswal, these kinds of brokers who charge you for some extra benefits like you can trade in commodities, equity, digital gold, etc. These brokers charge you for account opening and AMC(annual maintenance charges). 

So before account opening, you must be cautious about why are you opening a Demat account, and are you gonna invest regularly or not. Because after opening the account some brokers will charge you on a regular basis, whether you are using their service or not. Down below I'm giving you some play store apps links so you can check them out and read their reviews. One thing I must say, I'm not promoting any application, this is only for educational purposes.

In these apps, you can easily do your e-KYC. If you want to know which documents do you need for e-KYC you must visit my earlier blog. Last Blog 🠜 click here and you will be redirected to my last blog.

Or you can visit your physical bank's nearest branch and you can open there a Demat account.

I wish this may help you, if you have further queries please let me know. And if you need detailed analysis and review on stockbrokers then comment down below and let me know.

Editor: Rupak Chowdhury, Sk Elaf Ahmed.

Date: 22/05/2021