When you buy shares and securities, you must
hold them in a digital form. So, you use a dematerialized account (Demat
account). So, you as the investor do not take physical possession of the
certificates. At the time you register with the investment broker, you will
open a Demat account.
Use of a Demat account
So, the Demat account is where you hold the
stocks and shares in digital form. The trading account is where you make the
trades. The trading account is with the broker who allows you access to the
trading platform. To open your Demat account, you must follow these three
steps.
Buy mutual funds through the stock exchange thorough your trading account.
Submit a request to your Depository Participant (DP) to convert the existing Mutual Fund units.
Submit your Demat account details to the Asset Management Company (or the Registrar and Transfer Agent).
Buy mutual funds through the stock exchange thorough your trading account.
Submit a request to your Depository Participant (DP) to convert the existing Mutual Fund units.
Submit your Demat account details to the Asset Management Company (or the Registrar and Transfer Agent).
To know which the Best Demat Account in India
is, you have to make comparisons. The first thing to check is the brokerage.
You must try to get one with the lowest brokerage. Among the top five discount
brokers, you have SAS Online and Wisdom Capital as the ones to reckon with. SAS
Online scores over Wisdom Capital in that it offers monthly plans. But, why do
you need monthly plans? You can use one of the three plans offered by Wisdom
Capital – Freedom Plan, Pro Plan, and the Ultimate Plan.
Freedom plan from Wisdom Capital
The Freedom Plan is a zero brokerage plan
across all the segments – BSE, NSE, MCX, and FNO. The Freedom Plan is a free
for lifetime plan. They started this with the idea of encouraging investment in
India. You have free Demat account and no activation charge. There is no catch,
it is absolutely free and the brokerage is zero. This makes Wisdom Capital so
attractive for the new investors.
The transaction/turnover charges vary slightly
between SAS Online and Wisdom Capital. They both charge Rs 325 per crore for
Equity Delivery and Equity Intraday. For the Equity Futures, Wisdom Capital
charges Rs 340 per crore while SAS Online charges Rs 250. In both the next two
categories Equity Options and Currency Futures, Wisdom Capital charges are
lower at Rs 5500 per crore and Rs 135 per crore respectively. The other company
charges Rs 6500 and Rs 165 respectively.
The NEST Terminal
If you have doubts about which the Best
Demat Account in India is, you must consider a few more things. This is the
trading platform that Wisdom Capital gives you. You can also use the NEST
trader, a functional trading terminal to execute fast orders. They allow real
time monitoring. This is simple and easy to use and does not have any attached
charge.
Also, it is available across the desktop, the
mobile, and the web so you can switch the platform to suit your convenience.
You can trade in all segments MCX Commodities, NSE Cash, Currency, and F&O.
This is due to the advanced features available on the NEST terminal such as
NEST Plus, MIS, CO, Algo Plugin, and more. All the three plans are free for
lifetime.
