A 3-in-1 account includes all the essentials required to trade online. It consists of a demat account, a trading account, and a bank account. A single form can be filled out to open all these accounts at the same time. The funds required to buy a stock are provided by the bank account that is linked to your trading account. Once the buy order is placed, the shares will be credited to your demat account in T+2 days. To sell stocks, you need to place the sell order through your trading account. The shares will be debited from your demat account and once the trades are settled, the money will be available for withdrawal in T+2 days.
Factors to consider while choosing a 3-in-1 trading account
Here are some crucial factors that you need to analyze before opening a 3-in-1 trading account:
Facility to trade in various financial instruments
Choose a 3-in-1 trading account that allows you to invest in stocks, mutual funds, ETFs, government securities, corporate bonds, and other financial instruments. You should be able to trade in various asset classes including equities, bonds, derivatives, commodities, etc. It will help you to diversify your investments and mitigate the risks of your investment portfolio.
Technologically advanced trading platform
Nowadays, DPs provide a wide range of analytics to investors including data on key market players, details on demat inflow and outflow, and theme-based investment plans. By opening a demat account with such a DP, you get an advanced and user-friendly platform to trade. You also get a trading app that makes real-time investments possible. The notifications for receiving the latest trends and recommendations can be activated. They allow you to fine-tune your trading strategies on the go.
Customer Support
Open a 3-in-1 account after knowing whether the broker provides dedicated support services or not. Also, you should be allowed to raise your concerns via emails, calls, and chat support. You may also get a facility where the account provider arranges a call to resolve your complaints or queries upon request.
Low brokerage charges
Reasonable brokerage charges help you to optimize the profit margins. Expecting transparency when it comes to brokerage and other demat charges is the right of every investor. Demat charges include one-time account opening charges, custodian charges, and demat account maintenance charges or AMC. Go through all the charges mentioned in the contract before signing it. If you have any doubts regarding the demat charges, you can contact the broker immediately.
Research & Advisory Services
A full-brokerage 3-in-1 account includes advisory services and research-based recommendations. Advisory services are provided by considering the financial goals, risk appetite, and other aspects of the customers. As a percentage of the trade volume is charged as a brokerage, you have to spend a considerable amount on brokerage. However, these services are worth your money if you don’t have enough trading skills or experience.
If you don’t need these services, you can open an account with a discount broker. A discount broker provides the basic services required for trading. You also have access to a modern trading platform and enough resources to make a profit if you are an experienced trader.
Credibility of the broker
A credible broker is one who doesn’t indulge in fraudulent activities and maintains a clean image by revealing all the Demat account charges upfront. The credibility of the broker can also be affected if there are any security breaches in their platform. Once you evaluate a broker on the basis of all these factors, you can go ahead and open a demat account with them.
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