Demat account is necessary for trading in share market. While opening a demat account, other important things including brokerage and transaction fees should be taken care of.
You must have heard about Demat account. But many people do not know about Demat account. Actually a demat account is opened to invest in the share market. Trading in the stock market is not done without a demat account. Today we are telling you what are the things to be kept in mind while opening a demat account.
1-brokerage and transaction fees
- Demat account opening and brokerage charges differ between brokers.
- Nowadays most of the people are opening free demat accounts.
- You may be charged transaction fees for buying and selling equity.
- check these things
- Demat account fees, annual maintenance charges, transaction fees.
- There can be a big difference between brokers regarding transaction fees.
2-Other facilities
- Know what facilities the brokerage house will give you.
- Apart from the service of equity broking, some brokerage houses also offer a variety of other services.
- Like many brokerage firms keep providing you research from time to time. This research helps you to invest in the right place.
3-Demat and Trading Account
- It is best if your broker gives you a 2-in-1 demat and trading account.
- Demat account is incomplete without trading account.
- Keep in mind that you can only hold shares in digital form in a demat account.
- With a trading account, you can invest in shares, IPOs, mutual funds and even gold. After that you can keep them in demat account.
4-Portfolio information is also necessary
- Some brokerage houses give you the information of your portfolio from time to time.
- This helps in keeping track of the returns you will get from the investment.
5-connectivity
- Both phone and internet can be used for business.
- It is important to know which of the two facilities the brokerage house provides.
- Most brokers offer both the facilities.
