Meaning of Full Service Demat Account

A Demat or Dematerialized Account is an electronic account that securely stores various financial securities (mainly shares) in an electronic format. It’s an essential element for anyone interested in acquiring company shares or stocks in the stock market. One can open a Demat account online and start trading anytime and anywhere. As a result, online trading has been convenient and affordable. 

You have to open a Demat account with a brokerage firm, and you choose to select one among many brokerage firms in India.

Demat Account Providers

The Demat account providers get classified into three major categories:

• Full service Demat account providers, i.e., the full service brokers
• The discount Demat account provider, i.e., the discount broker 
• Banks

The banks provide you with the facility to open a three-in-one account, which means they will open a bank account, a trading account, and a Demat account. Both discount brokers and full service brokers will open your trading and Demat accounts. However, among all these Demat account providers, the full service brokerage provides its investors with the highest facilities.

This article will discuss the fsda and its features.

Full service Demat account meaning: A full service Demat account is commonly known as an FSDA account. At the same time, full service brokers are traditional brokers who provide FSDA. As the name suggests, these brokers offer a bundle of services and facilities.

Whereas a discount broker offers only a Demat account to trade and invest, you must follow strategies to earn good returns. 

Full Service Demat Account in Detail

Full service Dematerialized account services are investment advice, suggestions and research reports, investment banking, sales, and general portfolio management. One cannot get all these services from a discount broker. However, an investor can avail of all the services based on the investor’s requirements under one roof if they open a Demat account through a full service Dematerialized account. Some full service brokers also offer banking services apart from a Demat account and a trading account. 

Let us discuss some of the services offered by the full service dematerialized account in detail:

Portfolio Management Services

A full service online Demat account offers trading advisory and recommendations on what should be included in your portfolio apart from allowing you to purchase and sell stock to build a portfolio. Unlike a discount brokerage Demat account, a full service brokerage account will also regularly let you revisit your portfolio to add stocks.

A full service brokerage will provide you with a relationship manager, call and trade information, and advice.

The following is the basic information about the facilities provided by the full service broker:

• A relationship manager is someone who you can call when you feel like you have a query regarding your investment and trading. A relationship manager is one of the most prominent facilities given by a full service broker. 
• The call and trade facility provided by the full service broker gives you an edge in mobile trading as it allows you to call the firm and inform them about which trade or share your wish to purchase. 
• And finally, the recommendation tips are based on the equity research report that a full service brokerage firm provides to its investors. You can get advice about where to invest. However, it is always a wise decision in the field of the stock market to always double-check the trading tips provided by anyone and then invest in the stock market. Of course, you should always be self-dependent, but you can still consider the information as the recommendations based on the report.

Make a Financial Strategy

The main reason you chose to invest in the stock market is to achieve your financial objectives. A full service broker can assist you with these, helping you achieve your goals with good returns in a safe and quick mode. 

Access to New Opportunities

The brokers will update you with all the new happenings in the stock market. In addition, they will assist you in getting more access to IPOs. If you use a full service dematerialized account, there is a greater possibility of allocating all IPOs to the public for investments. 

A full service brokerage Demat account offers many services because they charge a high commission, generally charged on a percentage basis. For every transaction you make, they charge a commission fee and a transaction fee. 

Full-service brokers are the best for anyone entering the stock market without prior experience. They provide advisory services and help them understand the market and its technical terms. In addition, these brokers will assist the newbie traders with all the services and benefits.

Conclusion

Choosing to open a fsda from a full service brokerage firm lets you receive all the services of an entire firm. A full service broker manages your investment requirements and helps you meet your goals. They can help you get early IPO allotments. One can approach the broker at any time to get customer support. 

As an investor, you have the right to make your own decision based on your research and financial objectives. However, you must always double-check all the charges and facilities of all types of brokers before deciding.

Frequently Asked Questions (FAQs)