In this post I will explain the points which I think one should consider before choosing or opening a Demat Account. There are two main things one considers while selecting a service or a product.
- Ease of Access of your Demat Account information : For me this just means that I must be able to access my demat account information online. SBI Demat Account, the one I have, does allow you to access your holding/portfolio details online via a tab with their internet banking account. I am sure several other Demat Acounts also offer that facility.
- Customer Service: Frankly speaking I have had no chance to interact with the customer service of any depository. For me Demat Accounts are passive accounts, which just keep track of your equities or stocks holdings. However, if you plan to buy / sell directly through your Depository or if you like shares in paper formats then these things may play a role. I am not the right person to provide any experience in this matter.
- Demat Account Opening Charges
- Demat Account Maintenance Charges
- Charges for Buy/Sell Trades.
The best case scenario is when your DP does not charge you at all for buy/sell trades. For example, for trades performed on SBICAP Securities, SBI Demat Account does not charge anything. Same is true for ICICI Demat Account if you perform trades on ICICI Direct. However in this case it is not the charges of Demat Account that one should look at but the sum total of Demat Account Charges plus Brokerage Charges. (here the sum total is way high for ICICI). So I would suggest dont just choose a Demat Account. Think of choosing a pair: Demat Account and a Online Trading Account. Selecting an Online trading account is much more delicate as here a good customer service, accurate execution of transactions, good server, etc. matter much more.