The Demat Account refers to dematerialized account, an account to hold the shares in electronic form. The Securities Exchange Board of India (SEBI) makes demat account mandatory to all investors to maintain their shares. Investors have to register with an investment brokers (sub broker) to open demat account. With the recent notification by SEBI that shares held in the material form will not be valid after the end of the year has sent many an investor into research mode to find a way to dematerialise their holdings. This is a long process, but one important step is to first have a demat account to deposit the shares in.
Demat account services are offered by many public and private sector banks, brokerage companies, online brokers and financial institutions that provide DP services as well.
The benefits of a demat account are many and include safety, convenience, faster transactions, lower risks, fewer thefts, absence of paperwork during transactions among many other options to invest and trade. Many brokerages (discount brokers) also offer cheaper transaction costs, margin trading ability and access to their research reports that can help you choose stocks better.
But choosing the right broker is a daunting task and can confuse even the most intelligent investor. Some brokers have high brokerage costs & apps that are not user friendly. Some brokers however may have low brokerage but apps that hang during trades causing losses that cannot be recouped. Good customer care, provision of margins for trading are other things one has to look for. The factors that guide your demat account provider selection should be the charges, product & service quality and transparency in dealings.
Angel Broking is a trusted full service broker in India since 1997. They have always been at the forefront of adapting to new technologies for the past two decades and have announced a demat account that comes with 20% discount on online trades with a leverage of 40 times the value. The Angel Broking demat account also is free for lifetime and the free trading apps provided by them are among the best in the service in India. Angel Broking provides technical and fundamental research guidance to all its customers!
Angel Broking demat account offers an account that can be used to trade securities, stock, gold, ETFs and currencies. Through these accounts, you can trade online without having to depend on a stockbroker. Angel Broking has an easy-to- use web-portal and mobile app. Many investors also talk about the excellent feedback system and great training system that is part of the Angel Broking Demat account.
Demat account charges differ across stock brokers. Though the rates may differ, the charges are under the following heads:
- Demat account opening charges or AOC
- Demat annual maintenance fee or AMC
- Transaction/ Brokerage fee
- Stock Trading software charges
- Charges for Call & Trade facility (if provided by your stock broking company)
- Charges for sending stock tips on SMS
- Service Tax is charged over and above this as applicable
Some demat account service providers may waive off certain fees depending on the brokerage plan you opt for.
Angel Broking charge Rs. 450 per year for their service and if you want you can opt for life time AMC of RS. 2500/ which I think is best for future. Also depending on your turnover, you may be able to negotiate better rates with them. Once you have opened your demat account, the shares bought and sold by you will reflect in your demat account. Any physical share certificates held by you can now be dematerialized and transferred to your new demat account for hassle free stock investments.