The investment horizon has broadened for many investors willing to make money in stocks, especially with the burgeoning online trading platforms. For the young investor willing to step into the world of stock investments for the first time, it is imperative to open a Demat account, which is required for holding securities in an electronic format.
What Is a Demat Account?
A Demat (short for Dematerialized) account allows investors to hold shares, bonds, and other securities in electronic form. Thus, the need for physical share certificates is eliminated, thereby giving investors the convenience of managing their investments online. Investors measure a Demat account along with the trading account, whereby they buy and sell securities.
How to Open a Demat Account?
To open a Demat account, an individual must visit a depository participant (bank, broker, or financial institution). Usually, when opening an account, individuals must submit personal details, proof of address, and PAN cards. Once the application is processed, the account holder receives a Demat account number, which they can use to start trading.
Top 5 Demat Accounts for Young Investors in 2023
1. Bajaj Financial Securities Ltd. (Bajaj Broking)
Bajaj Broking offers comprehensive services for a Demat account that cater to young investors looking for a seamless and less expensive investment platform. The zero annual maintenance charges levied for the Demat account of Bajaj Broking attract many first-time investors. The brokerage fees are competitive, and the platform supports a wide range of financial products like stocks, bonds, mutual funds, and commodities.
2. Zerodha
Zerodha is a well-known name in the Indian stock brokerage space, offering an easy-to-use trading platform along with a Demat account. Zerodha provides a low-cost structure, including no annual maintenance fee for a Demat account. Reasonably priced and transparent for a new set of investors, it charges a flat fee of Rs. 20 per trade for equity delivery and intraday trades.
3. Upstox
Upstox is another popular brokerage firm in India that provides affordable and efficient trading solutions. Investors find the process of opening a Demat account seamless, and they charge for account maintenance. Rs. 20 per trade is charged without any hidden charges. Besides, Upstox offers a mobile app to allow young investors to track their portfolios and trades.
4. Angel One
Formerly known as Angel Broking, Angel One is a name that retail investors trust. They simplify the Demat account opening with minimal documentation, making it an extremely simple procedure. They come off as one of the low-paid brokers with an exceptionally efficient trading platform. Their mobile application is really user-friendly, allowing young investors to easily keep track of their portfolios and trade on the go.
5. Groww
A digital-first platform that has gained much traction among young investors. Groww started as a mutual fund investment platform and then moved into stock trading and Demat accounts. One of the key highlights of Groww is its simple and easy-to-navigate interface, designed with first-time investors in mind.
Key Considerations When Choosing a Demat Account
Young investors should consider the following factors when selecting a Demat account:
Account Maintenance Fees: Different brokers offer varying fees for account maintenance. While some offer no annual charges, others may impose a fee, which can greatly reduce the overall cost of trading.
Brokerage Charges: Investors should compare the brokerage charges for equity delivery, intraday trading, and other services. Discount brokers often present a flat fee, making them even more attractive for cost-conscious investors.
The User-Friendliness of the Platform: The user interface of the trading platform must be well-designed and user-friendly, especially to cater to all new investors. Platforms offering easy navigation and real-time updates, along with educational content, are the ones to look out for.
Customer Support: An efficient system of customer support is a must when making the account, as any future queries or hurdles must be resolved.
Additional Features: The other features provided by some brokers, such as research reports, tools for market analysis, and educational sources, will help young investors extend their knowledge and therefore make better investment decisions.
Conclusion
A Demat account marks the first step in the investment journey for young investors. Among the different platforms mentioned above, some offer a variety of features to suit different investment needs.
