Finance

Where To Open The Best Demat Account?

Demat Account

Published on April 6th, 2022

Interest in the different securities market has skyrocketed over the last few years. As potential investors look to diversify their surplus for an alternative income opportunity, easy onboarding has also left the markets more accessible than ever.

And as that happens, the question arises which of the many will be the top Demat Account for you? To reiterate, digital security wallets or Demat Accounts offer a safe and convenient way to hold securities with an immediate transfer facility.

Not only does it eliminate the risks associated with physical certificates, but Demat Accounts have also reduced paperwork and transaction cost after their introduction.

Processes

For opening the account and KYC completion, an investor must approach a SEBI-approved Depository Participant either online or offline. You cannot directly open a Demat Account with a depository.

An investor’s approach should be shortlisting a SEBI-approved DP that holds some reputation in the market standing. It is worth repeating that a DP includes public financial institutions, scheduled commercial banks, RBI-approved foreign banks, stockbrokers, etc.

Therefore, factors like market ratings, ease of using a digital platform, security and offerings should be considered in the selection.

Then, check if the investor wants to open a single holder or joint holder account, regular account or NRI Account etc.

Options Available

Another crucial differentiating factor is the offering and brokerage charged by various platforms.

The selection depends on the platform’s level of financial advisory services, market research, and customer guidance. Here, the call of choosing a discount broker vis-a-vis a full-service broker gets done.

The former is a stockbroker who concludes trades at reduced commission rates, while the latter provides investment advice and performs analysis at higher commissions.

Day traders often opt for platforms with lower trading costs when it comes to selection. Meanwhile, most investors prefer a 3-in-1 Demat, Banking, and Trading Account.

While DPs will provide Demat opening service, brokers allow trading. Additionally, some brokers also offer Savings Account in their all-in-one account facilities.

Convenience

However, in the end, it narrows down to convenience. Any selected platform needs to offer a user-friendly interface while providing the mentioned services. Additionally, if the trader is looking for a wide range of offerings in Equity, Mutual Funds, Bonds, Commodity, Currency, Futures & Options trading, etc., websites offering only Equity and Debt Trading will not suffice.

Similarly, suppose a professional trader and investor who can accurately time the market wants advanced options like stop-loss with lower commissions. In that case, the financial advisory may not be a value addition for the professional. Therefore, a top Demat Account for any investor is the one that fulfills the individual needs to the optimal level. To make a wise choice, investors must compare the market players on the relevant parameters.

Disclaimer – ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. AMFI Regn. No.: ARN-0845. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: [email protected] Investment in the securities market is subject to market risks, read all the related documents carefully before investing. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purposes.