The first step to enter the share market is opening a demat account, to invest or trade in the capital market. Demat accounts hold shares in electronic form with a depository. Unlike before, now stocks are stored in an online mode in your demat account. The demat account is maintained with the one of the 2 depositories in India. Brokers are agents who hold account with depository and further facilitate customers to open an account with their brokerage firm.
Trading accounts facilitates exchange of shares online without going anywhere at the comfort of your home. Latest technologies have really changed the way we work and equipped us with greater flexibility with everything.
Both trading and Demat accounts can be used online. You can place orders in the online portal that you will receive from your brokerage firm. There is a lot of research involved when it comes to selecting the Best Discount broker in India. There are a lot of things that you need to know before you finalize the right broker for you.
Look up for the following things while selecting your broker, they will help you compare different brokers:
- Commission: One of the first things you must check among different brokers is the brokerage that they charge from you. Some companies even have hidden charges. Make sure you have knowledge of all charges before opening an account.
- Mobile applications: Most of the brokerage firms have launched their mobile trading platforms. These applications help you trade on the move. With greater flexibility you have better controls over your investment.
- Value Added Services: Many companies provide value added services in terms of financial guidance. Some firms even roll out tips on the movement of stocks for short term and long term purposes.
- Market Reputation: Selecting the right broker is an important part of your trading plan. If you end you choosing an incompetent brokerage firm, you might have to suffer in future. Study the various brokers available in the market and compare the services and prices. Also go through the reviews posted by the existing members and after you are fully satisfied, open the account
These are some of the main things you need to keep in mind before opening a Demat account. There are two ways to start trading, the first is by yourself- you trade in the market based on your financial knowledge and the other one is guided by somebody.
If you are somebody with little financial knowledge but want to invest in the share market, finding a good financial advisor will be a good idea. Financial advisors are people who do research every day and keep a tap of the market on a daily basis. They have better idea about the market than us. Since they have information coming from various channels, they are in a better position to judge the future movement of the market.
Whatever you do, just make sure you are calm and composed while taking financial decisions to avoid any confusions and mismanagement.