The Buyt Desk
Too many options sometimes lead to confusion. And the same is true in the case of the Demat account. When it comes to opening a Demat account, many depositories are present, and all of them claim to provide the best service. For an individual landing in the trading realm for the first time, it becomes quite confusing which one they should choose.
If you are looking for tips on selecting the best DP for opening a Demat account, then here are a few of them.
Choose DP That Open Both Trading and Demat Account
When the trading market has gone so competitive, it is a need for hours for stockbroking firms to add new features to their services. Adapting the change, you can see almost all the stockbroking firms have become depository participants and offer all services under one roof, such as trading and Demat account opening, etc.
The stockbroking firms offering exclusive services are only a few and also not worth going for. However, you might get trapped by these firms in the absence of knowledge.
Always open trading and Demat accounts from one service provider. It will give you many benefits in addition to saving time and effort.
Check If The DP You are Choosing Allows To Access Your Demat Account
Though most service providers allow single-window access to both trading and Demat accounts, not all of them. In the first case, you login into the Demat account and will be able to access the trading account. It gives convenience as you don’t have to manage two platforms. Always check whether your service provider is giving you the same option or not.
Check The Service History Of Depository Point
Thanks to the platforms that shared unbiased reviews of products and services! By this, you get to know about the service and product quality before picking it. You can do a good internet search and check out the feedback left by fellow investors and traders about different depositories. It will give a better idea about depositories services. It is logical to stay away from DPs with negative feedback.
Check and Compare Cost Of Services
A depository point comes with multiple charges. It includes AMC, charges for statements physical and duplicate, dematerialization and rematerialisation cost.
DPs have been categorized into two, depending on the services it offers. They are a discount service broker and a full-service broker. The charges of both DPs are different based on their services. Therefore, you must choose one according to your budget. Checking charges and comparing them with competitors will help you get the best DP for opening a Demat account.
These are a few tips to choose the best DP for opening a Demat account. Follow the advice and start your investment journey with confidence.
