Having a second source of income has become the need of the time in today’s world. The increase in competition in every business and decreasing margin of profits is encouraging people to diversify their investments and hence their incomes. A majority of people used to diversify either in the real estate business or in the capital markets but after the fall in the real estate prices have lead the investors to invest in the stock market.
The presence of the capital markets has seen a mounting growth which also adds on to the reason behind investing in share markets as a source for diversification. In the investment world the key role players can be identified as a broker or a brokerage firm, or a dealer, the stock exchange and the clients. A broker or a brokerage firm is the person that links the client to the stock markets and act as an intermediary and a Demat account is an account that links the clients to the broker or brokerage firms. For opening a Demat account a person has to first look that whether or not that broker or brokerage firm is registered under the SEBI (Securities Exchange Board Of India). After looking for this the main difficulty comes in selecting with which broker or brokerage firm to open a Demat account. There is an increasing demand for opening a Demat account.
One can look for the top 5 or 10 brokerage firms which openthebest Demat account. One should compare amongst the top 5 brokerage firms in India is wisdom capital, IDBI Capital, HDFC Securities, Nirmal Bang Securities, Kotak Securities, etc. But for a layman selecting the best amongst them seems a difficult task. How can one differentiate between them? The answer is straight forward and simple. The first thing to compare between the company’s is the brokerage they charge. One should select the most discount brokerage firm to realize greater profits. Although almost all the companies charge a nominal amount of brokerage for basic share trading apart from wisdom capital which opens and charges no brokerage for the trading of basic shares. Also it provides a convenient user interface application for trading of shares.
Generally opening a Demat account in the brokerage firms owned by the bank is problematic as it also requires you to have a normal savings or salary account in that branch and then only you can open a Demat account which is fairly a time-consuming process. Wherein wisdom capital opens a Demat account with 2-3 business days of application. Also unlike other brokerage firms wisdom capital allows you to trade in any of the financial instruments like Derivatives, futures and forwards, swaps, commodities, etc. Without charging any extra brokerage in the form of extra brokerage, activation charges, etc.
So opening a Demat account with wisdom capital reduces the person from the extra charges charged by other brokerage firms and in turn increasing the client’s profits or income. Therefore for opening a Demat account wisdom capital is more preferable than any other brokerage firm.