Trading isa great way to invest and earn from your savings. Since there are good returns offered on investments, the number of people opening Demat accounts for trading are greatly. Additionally, the facility of the online stock broker allows you to trade in the market in the comfort of your home.
Though it is easy to open demat account, some questions revolve around changing the broker; the most prominent being, “Can I change my broker without changing the Demat account?”
If you are also looking for an answer, read below for more.
Reasons To Change Broker Account
There can be a variety of reasons which may lead you to change your broking account. Sometimes, it can be because of the high fee structure, or other times because of the associated facilities. If you are wondering what the common reasons are for people to change their broker accounts, read below –
1] Issue with maintaining a minimum balance
Some brokerage accounts require you to maintain a minimum balance. If you have trouble meeting that condition, it might be time to start over. There are a lot of brokerages that don’t have any minimums, which could give you more financial freedom.
2] Fees are too high
When you open a brokerage account, there are fees; some online stock brokers charge hefty fees while others offer quite a reasonable service. When the fees are too high, you might need to shift the account to another broker.
3] Inefficient service
Response, query resolution, and prompt service are a few things that you might expect from your broker. If you cannot get these from the end, then it is better to shift to one that offers better services.
4] Complex platform
Whether you trade frequently or not, your brokerage account’s platform should be simple. If different features and oddities confuse or trick you up, you might wish to switch to a simpler brokerage account.
Change Broker Account Without Changing Demat Account
Yes, you can change the broker account without changing the Demat account. But to do so, you may need to follow different methods based on the circumstances. They are:
1] Shift your Demat holdings to another broker
New and existing depositories (NSDL or CDSL) are key points when it comes to shifting demat holdings. When both are the same you can directly transfer but if they are different you must submit a debit instruction slip (DIS) to your current DP to transfer your current shareholdings to the new DP.
2] Shift your trading account with open positions
The open futures and options positions in your trading account are not transferable to another broker in this instance. Before you may cancel the account, you must close all of these positions to zero. Also, you should never leave an active trading account unused or in the dormant stage as it is prone to misuse.
Investing in the stock market is a great way to earn returns in the long run. However, with the wrong broker, you could end up making more losses than profits. When you open a Demat account, read the terms and conditions of associated charges thoroughly to ensure that you gain the advantages of trading. Connect with a reliable and efficient online stock broker to earn higher returns.