InvestorQ : What are the criteria before opening trading and demat account?
Sam Eswaran made post

What are the criteria before opening trading and demat account?

Mitali Bhutta answered.
3 years ago

Once you have identified the broker with a reasonable pedigree, the next step is to open your trading and demat account. Today, brokers will offer you online trading facility at the time of account opening. That means you’re trading account and demat account get created at the same time and they also get linked to your bank account to give you a seamless trading experience. Here are the key considerations for you when opening your trading and demat account with a broker…

Does the broker’s online trading platform offer you a robust solution? This is important if you are looking to trade and invest from the comfort of your home or office.

In case you wish to walk to the nearest branch and trade, ensure that the dealing room is close by and you can access it at short notice.

Does the broker offer you multiple access points to your trading account like web interface, mobile interface, branch interface, call centre etc? The more options you have to operate your trading account it is better since you always have an extra option to fall back upon in any eventuality.

Do you get your contract notes and demat statements on time? This is the basic convenience you must insist on as a trading client. In fact, you can sign up to receive your contract notes, ledger statements and demat statements online so that it is real-time and also saves you the hassles of physical delivery.

Ensure that the broker has a clear cut escalation mechanism and also a robust grievance redressal mechanism. Of course, the ideal broker is one who does away with the need to complain; but that is more theoretical. In the event of a problem, you as a client must have a simple mechanism of getting your problem redressed and also escalating it higher if required.

Your account opening requires basic Know Your Client (KYC) formalities where you are required to provide basic documentation. This is in the interest of the client and we suggest you go through the KYC process diligently. However, today brokers have made the process convenient by offering online account opening, online verification, Aadhar-based authentication etc. These are small conveniences you must insist on as a client.