Selecting the best Demat account is most important to a trading career. If your broker gives you slow service and charges high brokerage, it could affect your profit. So before opening a demat account, you should analyze the stockbroker on all parameters.
Here are some factors that you need to consider before choosing the best demat account for Trading.
- Ease and Low-cost Account Opening
- Low Brokerage and No Hidden charges
- Ease Fund Transfer
- User-friendly Software Interface
- Superfast Trading Platform
- Advisory & Research Facilities
- Good Customer Services
- Brand Reputation
Ease and Low-cost Account Opening:
This is a one-time fee, and it does not affect long term trading, but it would be best to save for the beginning. Normally most of the stockbroker offers free demat account. But free is not always good, so you need to see other points.
Here are a list of Free Demat Account Provider In India, it helps you to find a low-cost broker.
Low Brokerage and No Hidden charges:
Higher Brokerage charges directly affect your profit margin. It is not mean to a low Brokerage account is best. Full-service broker charges high brokerage camper to discount broker because full-service broker gives more service than discount broker.
So We should be analyzed why broker offers high or low Brokerage. Also, note that the broker is not imposing some hidden charges.
Ease Fund Transfer
You always need to fund transfer in the trading profession, so it should not be complicated and time-consuming. Note that simple fund transfer proses save your valuable timing.
User-friendly Software Interface
After account opening, broker give aces of their trading app or platform. The platform must be User-friendly and easy to use. User-friendly navigation helps you to find what you want, and it does not confuse what to do.
Our personal view is discount brokers platform is easier than a full-service broker. But can review your behalf.
Superfast Trading Platform
Every second is a matter in trading because Every second thousands of orders are executed in stock exchanges. Suppose Your broker does not provide real-time data and not executed order fast. Then, the chance of loss is high.
Advisory & Research Facilities
Market trend is changing very fast, and new things are coming up, so you need to learn more and upto date fore every trend. You need to broker who educate you and inform all market trends.
Good Customer Services
Investing using online platforms is easy to use and has many resources available on the internet. However, there may be a few times when you will require technical support. If your broker does not become capable of providing customer service, you may face a problem.
If you are new to investing/trading and you always require the help of customer service. Then I will recommend you to go with a full-service broker.
There are many scamming brokers present to scam you, Do your research to identify such a broker. Ensure your stock broker has a clean sheet history; also, your stock broker is SEBI registered or not.