As per the market regulators the trader needs to have a demat account and trading account with any of the authorized share trading company or broker. The need of these accounts is imperative and there is no alternate provided by the market to the traders. It is simple to get a trading and demat account opened. One needs to furnish his required documents and charges to get the accounts opened along with the prescribed form to the concerned authorities. However, it is needed for a trader to know the utility of both of these accounts first.
When do you need a Demat account?
Well, trading is an activity which is helpful to people who would like to earn some side income, also in some cases, they may take up a full-time job and main source of income. Various companies are listed which lets people trade shares of theirs. People who want to trade in the market need to have a specific account which is also known as trading account or Demat account. Also, there are several options available, various broking companies and brokers are available which would help you to trade easily in the market.
Also, it is necessary to have a Demat account as per the regulations. Accounting would help you to keep the record of all the shares bought or received from the IPO in the account. Also, people who want to be traders and trade in the market need to have a Demat account. If you are looking to open a Demat account, you can approach any broking company or broker to open a Demat account.
What are trading and brokerage?
Well, a broker and broking company has the liberty to open a trading account but if you want to have a Demat account, only NSDL and CDSL can open for you. For any sort of trading account, a trader needs to approach a broker who has the authorization to open a Demat account. A trader needs to provide several documents and margin money amount. Generally, all these accounts take up to a week to open.
As a trader, you need to know all the expenses you need to bear while trading. The main expense would be brokerage. Although it depends on the broker or broking company like, how much they want to charge as a brokerage. You should be sure about the brokerage amount you need to pay. In many cases, the brokerage is a percentage of the turnover while in some cases it is charged as a fixed amount on any trade you make. Various brokers are also there who charge brokerage amounts separately as an advance. You can always look for a broker who provides a discount.
What are some best broking services?
You will find many brokers and discount brokers as well. People who are full-service brokers offer numerous services whereas a discounted broker only offers a limited number of services. A huge number of discounted brokers are available in the market but they offer very few services. It is really important to hire the right broker.