Opening a demat account is the first step to start investing in the share market. This account serves as your dedicated account for all buying and selling transactions with regards to the share/stock market. Simple as it is, there are some basic mistakes that new investors make when planning to open demat account online. Here are these classic mistakes and how you can avoid them:

1. Not giving enough weightage to credibility

Most first-time investors tend to open demat account online with an institution without considering its credibility. Irrespective of who has recommended it to you, make sure you check the company size, customer base, customer reviews and industry sentiment towards the company. After all, while there are various laws in place to protect your account, it is best to be safe right at the start; look for companies that you can trust on multiple fronts – business stability, data security investments, customer service, and so on.

2. Overlooking activation time

Well-begun is half-done. This couldn’t be truer in the context of share market. As a first-time investor, you want to time your initial moves. And this can happen only if your demat account opens while the market is favourable to your investment strategy. Often, while companies may promise a certain activation time, their on-ground service may impact this. So, look for companies that don’t just let you open demat account online in minutes, but ones that also activate it in good time.

3. Convenience features

In the long run, this will matter more than you can imagine. Different demat account apps offer different features; this impacts your share market trading experience. So apart from checking the institution’s credibility, also check the app’s user reviews and features. If the app tends to have too many bugs, there could be days when you might be unable to excess your account when you need to profit from a micro moment at the share market.

Avoid these common mistakes by checking out your options on several fronts when you open demat account online.