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How to select the Best Demat Account

How to Choose the Best Demat Account

In the financial year 2021-22, there was a 63% increase in the total number of active Demat accounts in India (CDSL & NSDL combined). This is more than twice the number from pre-lockdown days and demonstrates how retail investors are leveraging the stock market to increase their passive income.

A prerequisite to trading in the stock market is to open a Demat and trading account. But with a large number of brokerage firms offering such services, it can get quite confusing and overwhelming to evaluate which is the best Demat account. But not anymore. Here is a guide to help you understand how to choose the best Demat account in India.

5 Key Deciding Factors for Selecting a Best Demat Account

In your quest to identify the best Demat account, you must consider the following key factors.

Brokerage, Trading Costs, and AMC

- Different brokers levy different Demat charges. The pricing models may vary from per trade to a percentage of the trade value. There may also be platform usage fees and Annual Maintenance Charges (AMC) that you need to clearly understand before finalising on a Demat account. But with m.Stock’s revolutionary ‘Zero Brokerage’ proposition, you can trade free across products for life with Zero Brokerage at a one-time fee of Rs 999. With an additional fee of Rs 999, you can also make your AMC free for life.

Account Opening Process

- Choose brokers that offer an entirely online account opening process (including e-KYC). This saves you time, effort, and paperwork.

UI and Trading Platform

- All your transactions will occur through a trading platform, provided by the broker. So, always look for a trading platform which is superfast with advanced features and tools yet has a simple user interface.

Margin Trading Facility

- While choosing best Demat accounts, look for value-added services like Margin Trading Facility. MTF allows you to trade even when you are low on funds, so you don’t miss out on any lucrative opportunities. m.Stock offers the lowest interest rate of 7.99% on MTF.

Excellent Customer Service

- Customer service is crucial, especially for new investors who need hand holding. But even expert traders need technical support, which requires an alert, quick, and responsive customer service team.

There are several firms in the market for you to choose from, but if you look at these key factors, then m.Stock from Mirae Asset ticks all the right boxes.

  • The entire account opening process is online and achieved in a matter of a few minutes.
  • With a super-fast yet ultra-secure and stable platform, you will never miss a trading opportunity.
  • With the latest charts, live updates, and other analytical tools, you will always stay ahead of the crowd in finding the right stocks to trade in.
  • Finally, while many brokers might offer discounts, m.Stock offers Zero Brokerage for life, including the option of making AMC free for life too.

So, join 30,000+ smart investors and open an m.Stock Demat account to trade free for life.

Frequently Asked Questions

According to SEBI rules, investors cannot trade in stocks directly. They must compulsorily open a Demat account with a SEBI registered broker, which needs to be linked with their trading and bank account.

While this has been the traditional approach and the option is still available, the best online Demat account providers, like m.Stock, allow its customers to complete the entire account opening process digitally. At m.Stock, the entire eKYC process is managed online by uploading documents and the process is quick (takes less than 5 minutes) and hassle-free.

m.Stock requires bare minimum documentation to complete the KYC process under SEBI guidelines, like:

  • Identity Proof: PAN card/Aadhaar card/Passport/Voter ID/Driver's License
  • Address Proof: Aadhaar card/Passport/Voter ID/Driver's License/Utility Bills (Telephone, Electricity, etc.)/Ration card
  • Income Proof: ITR copy/salary slips or account statement for the last 3 months
  • Bank Account Details: Cancelled cheque/copy of bank passbook.

Not only is m.Stock the best Demat account courtesy their zero brokerage proposition, it also gives you the option of making your AMC free for life by paying a nominal fee of ₹ 999 upfront. With a one-time fee of ₹ 999, you can open a Zero Brokerage for life Demat account and with another ₹ 999, you will never have to pay AMC again. At this unprecedented pricing, you get to enjoy a wide range of products to trade in like Stocks, IPO, F&O, Currency, Margin Trading Facility (eMargin) and more.

Yes, indeed. You can have multiple Demat accounts in your name. However, it is not permitted to have more than one Demat account with the same DP or broker. Furthermore, every Demat account needs to be linked to the holder’s PAN for tracking.

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