A demat account is used to store the shares and the securities electronically. To trade online you need a demat account and a trading account. To open the account you need to approach a depository participant. There are many depository participants like brokers, banks and financial institution. The depositories in India are CDSL and NSDL. The list of depositories is available online at the two websites.
 

 

 

Best Demat and Trading Account | Image Resource : goodreturns.in

 

There are many DPs offering the demat services. You can compare the charges and the features before choosing the best demat and trading account. The charges that are levied on the damta account are

Account opening fees

 

There may or may not be an account opening fees depending on the depository participant. Some private banks do not charge this fees. You should check the account opening fee before opening the account.

Annual maintenance fees

 

This is charged monthly or annually for maintenance. It is levied well in advance. The charges may be high for good service or it may be low for moderate service.

Custodian fees

 

This is charged for safe keeping you shares in the demat account. The charge depends on the number of securities in your account. It is charged yearly.

Transaction fees

 

It is charged for crediting and debiting the shares to and from your account. Some DPs charge flat fee per transaction while some pay the fees to the transaction value and there is a minimal amount. Some charge only for debiting the shares. They also charge service tax. Some charge fees even if the instruction for buy or sell is rejected.

Dematerialization fees

 

This is charged by the DP for converting the shares from physical to electronic form and vice versa. The DPs charge flat fees per request.

You should choose the demat account after knowing the charges. If you do not do so you may end up paying high charges. The charges differ from one provide to other. You can compare the charges and select the best trading account.

You should check the online platform provided by the DP. You should check for user friendly interface and the ease of use. You check if the the platform is net based so that you can use it anywhere. You should confirm the brokerage charges. If you are choosing a bank as your DP then it will lead to quick transactions and easy accessibility.

You can select the best trading platform India from the others based on what features they have.