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5 Tips on Choosing the Correct Platform for Your First Demat Account

A Dematerialised Account needs to be opened with online intermediary platforms to save assets and shares in electronic form. The right platform should be able to save your money and give you correct guidance too. Mentioned in this post are five tips to help you choose such a platform.

A large number of Indians are interested in investing their savings to see them grow. The different ways to invest is in mutual funds, IPOs, gold bonds or trade in the stock market. While these were previously done on paper and became cumbersome to keep track, now your physical assets and shares can be traded and deposited in electronic form. To do this, you need to have a Dematerialised Account Number. This is your online bank for all your financial securities.

Opening Your First Dematerialised Account

To venture into the trading, you need to have a place to save all the shares bought and sold. Your Dematerialised account saves your shares bought through a Trading Account. Also, your Trading account will take shares from your Dematerialised account to sell them. There are many intermediaries, also known as brokers, who provide both Dematerialised and trading account on their online platforms.

With a handful of players in the market and being a novice to trading, it is easy to lose track of the facts and give in to false marketing. Follow the five simple tips below while doing thorough initial research. These will help you choose the right trading platform to begin your trading journey.

#1- Reliability and Accessibility

Look for a company that has a good reputation. A depository participant that is established for a long time and has many registered investors is a safe bet. A few brokers have physical establishments spread across the country. This makes the platforms more accessible to beginners. Dematerialised accounts can be opened at these centres also.

#2- Ease of Opening

The platform should provide a user-friendly and smooth procedure to open a dematerialised account. The options of online filing, Adhaar Card authentication and virtual verification could be provided.

#3-Dematerialised Account Charges

To open a new Dematerialised account, a few platforms levy charges. However, a few broker sites do not charge for the same making you save money. Then you also need to look into the annual maintenance charges (AMC) for your account which can be 0-1000 rupees. In fact, some platforms have zero AMC for the first few years to ensure you have enough time to plant your foot in trading. Some platforms also have other charges (DIS, DRF). Make sure you choose a platform that charges minimal or zero opening and annual maintenance charges at least for a few years.

#4- Two-in-One Account

A seamless and ordered transfer between trading and dematerialised accounts is essential. A platform that provides both accounts under one umbrella makes the fund and stock transfers easy and economical. It also makes way for logical tracking of accounts.

#5-Support System

With thousands of companies listed on the stock exchange board, every beginner needs tips, explanations and advice every day for smooth trading experience. Moreover, you also need a support system to troubleshoot any problem, should it arise during the critical times, at the earliest. Look for a platform which has this kind of robust support system for your Demat Account in place.

Choosing a Reliable and Reasonable Depository Platform

Starting on the correct platform makes way for easy and seamless trading. Open your first Dematerialised account with an assured platform. Keep in mind the simple tricks provided above and have a fruitful experience in the Stock Market world.

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