Why one should have a demat account?
The accelerating growth of the country is leading to a mounting growth of the capital markets too. According to the statistics, India is considered to be in the top 10 growing nations over the globe. The burgeoning growth of the capital markets is leading to the high demands of the intermediary like brokers and the dealers. Stock markets play an important role in the development of the nation.
The accelerating growth of capital markets results in increased demand for new trading Demat account. Millions of trading accounts are been opened in a month. The first step of entering into the financial markets is opening a Demat account with the broker or brokerage firm registered under the securities exchange board of India (SEBI). After opening a Demat account one can start investing in the financial markets. The broker or the brokerage firms guides the clients regarding the ample amount of investment opportunities available. The important decision here to make is the broker or the brokerage firm to choose from the agglomerate number of brokerage firms.
There are a bundle of brokerage firms in India namely; wisdom capital, IDBI securities, HDFC securities, Nirmal Bang Securities, ICICI securities, etc. These all are the well-renowned trading companies in India but which should be selected from amongst them is a bigger concern. Amongst all the other wisdom capital is considered to be the best online trading account in India. The difference between the other brokerage firms and wisdom capital is that wisdom capital opens a brokerage account and charges 0% brokerage from the clients. Wherein the other brokerage firms charge a basic percentage of fees even if the client earns a profit or incurs a loss.
One more thing to notice here is that all the other brokerage firms charge different brokerage rates from different clients that lead to the exploitation of some clients. There are different types of investments to be made in the stock market like MCX index (commodities), NSE(National Stock Exchange), BSE(Bombay Stock Exchange), Nifty, Bank Nifty, etc. And the firms charge some extra brokerage if clients want to invest in these areas. Also, there are certain instruments in which trading is done like Derivatives( which includes buying and selling of call and put options), futures and forward contracts, swaps (interest rate swaps, fixed and floating rate swaps, etc.), investment in FOREX ( foreign exchange reserves) and mostly all the brokerage firms or brokers charge separate fees for trading all these variants. Wisdom capital on the other hand charges no extra brokerage from the customers for trading in any of the above. Wisdom capital charges net 0% in terms of brokerage unlike other brokerage firms. Although nominal maintenance fees are charged by every brokerage firms.
Brokerage charged by the bank creates hindrance in terms of the original return received by the clients. Selecting a discount broker is an important part while starting investing in the capital markets. Also wisdom capital provides the best online trading interface which is convenient and fast and helps the clients to manage their portfolio and search for the quotes and invest accordingly.
