Free Demat Account Opening In India
Free demat account opening is beneficial and a cost-effective way to trade in the Indian equity markets provided you evaluate your brokerage plan, and services provide by the stock brokers. This facility is provided by only by few share broking companies in India.
However, this facility is provided by most stock brokers only when they are convinced that you are a serious share market investor.
Free demat account opening empowers you to participate in online stock trading and take full control in managing your investment and just about anybody with the right enthusiasm in investment, and the know-how in capital market can take advantage of the opportunity. However, there are also banks and brokers that do impose a fee while opening a demat account.
Opening a demat account helps you to have access to all of your transactions online anytime. It also provides a high level of safety for your securities. The conventional share certificates had to be kept safe from fire or theft and there were chances of forgery too.
Electronic maintenance of the demat account does not involve any of these risks. The depository participant is responsible for the safety and maintenance of your demat account.
Find Out What Is a Free Demat Account Opening
When you open a free demat account, it means that your demat account opening charges have been waived off. Which essentially means that the stockbroker bears stamp paper charges for you and also does not charge you for opening your demat account. Stock brokers generally do this when:
This happens when you deposit a reasonably good initial investment in your account referred to as margin.
- When you go for advanced brokerage plans or pre-paid schemes.
- Or at the time when the broker is having a promotional offer.
Things to Look For In a Free Demat Account
Do not be overjoyed by discovering that your broker is offering to open your demat account for free. Because there are several other expenses like maintenance and software charges from which money can be swindled. Look for hidden charges while opening free demat account. Dishonest brokers waive off demat account opening fee but adjust it in demat account maintenance charges, software charges, etc.
Another important thing to look for is whether your broker is charging a fee for tips and trading calls given to you. Check, whether the tips and trading calls you are offered are charged or not.
Make sure that you don’t get trapped in high brokerage fee in the name of free demat account opening. High brokerage is a recurring cost and will hurt you more in the long term more than it will hurt the broker, as it can gain a lot by waiving off account opening charges.
Furthermore, be certain about the fact that the trading software provided by the broker is fast, reliable and user-friendly.
You must find out that your broker is offering beneficial trading tips and credible news updates.
Have a background check on the performance and efficiency of the broker in quality support service in trading transactions.
You should also keep these few key points in mind before finalizing on a broker who is offering to open a free demat account for you.
- The broker will expect a good margin money in your account.
- He will also expect you to opt for an advanced brokerage plan or a pre-paid scheme.
- Even if the account opening charges are waived off, there are other charges like the maintenance fee or the software charges where he can charge you extra money.
- He can charge you for the trade tips through SMS or the trading calls.
- Be sure that the brokerage fee is not too high. That would be a recurring cost, and you may end up paying him a lot more than you saved from the account opening charge.
- The trading software he provides should be reliable, fast and user-friendly.
- The news updates and trading tips should be credible as well as beneficial.
- Make inquiries and a background check on the quality of his services.