What is a Demat account?

India has been seeing a record surge in investors and traders. Reports suggest there are almost 9 Cr demat accounts in the country, which are consistently increasing in leaps and bounds. This is clear evidence of the popularity of trading for which a demat account is a prerequisite. Think of it like a bank account. In a bank account you store your cash, and a demat account holds your securities like stocks, mutual funds, ETFs, bonds, etc. in a digital form. Along with it, you require a trading account that allows you to actually buy and sell securities. With dozens of financial institutions offering trading services, you need to carefully evaluate which one to open a demat account with.

Criteria to pick a Demat account

If you are new to trading then here are some vital factors to consider before you open a demat account online.

• Reputation and reliability:  Before putting your hard-earned money in anybody’s hands, you need to verify their credentials and experience. Only choose the broker or online trading app that has all the relevant authorisations and certifications from SEBI and other industry regulatory authorities.
• Technology: Share trading is largely done online. Hence, you need to have a trading platform that is fast, stable, and secure. Whether it be order placement, live updates, or trend analysis, the trading platform should be easy to use and available on web portal and as a mobile app.
• Expert Guidance: Beginners can do with all the help they can get. If you’re just starting out, then you should look for an online trading app that gives relevant knowledge, industry insights, and easy to understand technical and fundamental analysis to help you trade confidently.
• Pricing: Trading is a service that comes at a price. There may be charges involved for account opening, delivery or intraday trading, account maintenance and other taxes. To maximise your earnings, you should compare the different charges carefully before choosing the broker.
• Multi-Asset Classes: Investment should not be limited to stock trading. There are several other asset classes such as currency, commodity, ETF, and mutual funds. If you open a demat account with a brokerage firm that offers the option to trade and invest in these various assets, then you can have a single consolidated view of your portfolio. It will be easy to manage and will cost less too.

Conclusion

The aforementioned checklist will help you identify the best demat account and online trading app. When you go through the factors one by one, you will notice that MO Investor Share Trading App by Motilal Oswal checks all the right boxes. Over 50 L Indians and numerous industry awards accolades and can vouch for this. Newcomers to trading will, especially, benefit from the personalised advice and readymade portfolio recommendations offered by Motilal Oswal. Apart from that, the insightful analytics and detailed stock analysis will help you hone your skills to become a seasoned and successful trader in the future. So, open a demat account online, now.

Related Blogs: How to Analyse Mutual Funds for Big Returns | Things to Know Before Investing in Mutual Funds | Mutual Fund - Need of Financial Plan | How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account