Trade Profits on the Forex Market Choose the Broker and Demat Account Wisely

Trade Profits on the Forex Market Choose the Broker and Demat Account Wisely

The best way to make money is to copy someone and make profits. This is one way you make profits on the market making trades in commodities and shares. The average trader is no more aware of the market swings and movements than the layman but he is able to carry his trade forward and get his share of the money doing simple things and carrying out simple tasks.

Open the Demat account

The first thing he does is to open a trading account. To do this, he goes online to choose the Top Stock brokers in India and then submits the form to open a trading account. You also must open a Demat account. This helps you invest in stocks directly. The demat account helps you to hold the stock you buy and sell in a dematerialized form, that is in digital form. 

To open the demat account you need help from the Depository Participant (DP). These DPs are banks, investment platforms, discount brokers, or any financial institution interested in helping you with your account. In India, the two biggest depositories are the NSDL and the CDSL with the NSDL having more than 12.7 million accounts of investors. 

Submit the needed documents

To open the demat account (often the account comes free), you must submit the form with your photograph signed across on it. The identity proof document copy and the address copy must go with your application form. You can use voter identity card, passport, or driving license for proof of identity. For proof of address, you may use the same. 

The DP office will send their representative to collect the documents. After verification, your account gets activated. Though the time taken for activation varies across the media, it will usually get activated within 3-7 days. You do not need many demat accounts for dealing with different banks or institutions. These demat accounts will have enough features to operate and maintain your account. Choose the Top Stock brokers in India so you will get the best facilities. 

The annual maintenance charges will be Rs 275 – 850 for banks, Rs 250 – 600 for stockbrokers, and Rs 200 for online portals. The discount brokers will cost lesser at Rs 200. The demat account opening charge will be nil in the case of banks and they will not ask for the first year AMC. You need to pay the charges only from the second year onward. 

Charges vary according to usage

The charges depend on how many transactions you have made using the demat account. For instance, HFDC bank charges an annual fee of Rs 750 if you have made less than 10 transactions. If you have made 11-25 transactions, you must pay Rs 500 only. If the transactions remain more than 25 then the fee is Rs 300 only. Usually, if your savings account remains linked to the demat account, there is no charge. Otherwise, the bank will charge some amount. For debit transactions, the bank takes 0.04% of the transaction value. This will lie between Rs 20-40. 

You may also open a demat account directly with the stock broking company instead of going through the bank. Here the AMC will vary depending on the company.



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