Hi Friends-
Back with one more important topic- Things to check before you open a demat account.
1. Search for the reviews & feedback's: Very important to spend some time to understand what the demat service provider offers. There are plenty of reviews available on the web, go through some trusted reviews to understand and compare the services offered. Based on your investment requirements, you can screen some of the demat services, call them and verify the actual services offered.
2. Ask upfront about charges and get written confirmation: One common mistake investors do is not asking further details about all the charges. That's where demat service providers take advantage. They will discuss about brokerages charges, but there will also be some hidden charges, you need to understand before taking final call. You will sign a bunch of documents, and thus agree to all the things without even reading ! For example some banks or companies charge DP charges on every sold securities on top of brokerage, for this they will charge minimum amount or a certain percentage whenever investor sells securities. These charges many people will not know. Once they start trading, slowly they realize, they are losing much of money in charges and brokerage and finally nothing is left as profit. I personally experienced this. So advice is to get written clarity on all the charges.
3. Negotiate on charges and services: There are many banks and companies, which will keep you charging at higher rates, you committed long back. Unless you bargain, they will keep on charging at these rate. There are many new demat & trading service options available now, and if you see an alternate demat & trading account with good services and fees, you can plan to shift. Before making final call ask for discounted brokerage, and annual maintenance fees in written. There is a SEBI circular available on web where guidelines pertaining to charges from service provider is mentioned clearly, so investors can make use of this circular and negotiate.
4. Customer care support and consumer complaints: Important to know the customer care service is better, as you would be frequently interacting with the bank for clarifications and other queries. Opt for the bank/ companies which are handling the customers with priorities and respect. There are banks an demat services which do not follow proper customer care service and it will be very disappointing and waste of time for you. Also do check for existing complaints on various consumer complaints boards, and you will come to know many things where customers are facing issues. The less consumer complaints your see on web for a bank, the better !
Hope I provided you some good information ! Feel free to put your comments and questions, Happy Investing and Enjoy !
No comments:
Post a Comment