best Demat account in India

Different brokers end up offering varied services to their client base. In order to invest there are various brokering types in the market as you can link up with them? You can link up with a normal broker or a full-time discount broker. With discount brokers, there are not a lot of products on offer as they provide an online best Demat account in India. Even they go on to provide a trading account where you can deal with cash futures and options. Normally a client has to trade online, but if they are looking to call and then trade broking charges accrue. On the other side of the coin, normal brokers roll out a wide variety of products as part of their basket.

To open a Demat account

In order to trade and invest you need to have a bank account, Demat account, and even a trading account. With the Demat account, you can hold the securities that you have gone on to purchase and to be sold in the future. With a trading account, it is possible to buy or sell securities on an intraday basis trading account that is also necessary to be trading in stocks or gold. A couple of DPs are there in India that are NDSL and CDSL. As an investor, there is nothing you need to do with these DPs as you do not need to get in touch with them when you are buying or selling a stock. It is a broker who interacts when a client goes on to purchase stocks.

The working model of a Demat account

The moment you go on to open a Demat account, you have to transfer funds from your account to the account of the broker.  Now it is possible to place an order in options or futures segments. Even it is possible to buy or sell mutual funds PMS etc and this is if your account is with a full-time broker. If you are planning to trade offline and then take the shares then you need to sign a delivery instruction slip and hand it over to a broker. If you have not given POA then you are not supposed to sign DIS every time you interact with your account as the broker is expected to do this at your end.

Charges

Apart from the regular brokerage on buying or selling a broker would charge account maintenance fees and opening fees. Sometimes both the charges could be waived off at the end of the broker considering the type of transactions you undertake. In fact, the broker charges are expected to vary from one broker to another as it could 0.10 paisa to 0.50 paisa whereas the discount charges could vary in the range of Rs 10 to Rs 30. The full type brokers end up charging on a turnover whereas discount traders charge on every trade. Ideally, you should be choosing a plan that suits your type of trading.