Demat Account- First step towards trading

by Shreya Dixit executive

Trading in the stock market is the most typical thing to do. In literal means, it is only buying and selling of securities. But, you have to do so with prevailing market trends. Stock trading is not at all easy and everyone needs guidance in initial stage. In order to ease things up, the concept of demat account has been introduced. When it comes to stock trading, then only initial guidance is not enough. With the help of demat account, you can stay fully aware of the fluctuation of stock market.

Demat accounts are available to you in electronic or digital forms of your stock market securities. All the shares or securities that have been bought or sold can be done only with your Demat account or in other words “Trading Account”. Unlike the earlier forms of trading in stock markets Demat accounts comparatively brought much security and easy trading platform. As per the ongoing trends and client’s risk profile, some best options are suggested to invest in for future benefits.

As a matter of fact, the ownership and transfer of stocks and securities takes place by means of electronic book entries. You will be getting the periodic statements with the details of all the transactions electronically. Having a track record of past transactions of demat account is always good. Here, demat account becomes important and it also offers numerous of benefits, which are as follows:

·         Lesser paper work has to be done

·         Easy and convenient process of investing in securities without hassle

·         Lesser time consuming

·         Immediate transfer of stocks and securities

·         No risks like theft of stocks, mutilation of certificates and loss of certificates

·         No stamp duty for transfer of shares in electronic form, unlike the physical segment

·         Cost reduction on transactions

·         No involvement of third parties

Apart from this, Demat account works just like any other saving account. So in other words, it can be said that demat account has brought convenience with itself. In the depository environment, once the securities are credited to your account, you become the legal owner of the securities. There will be no further need to send it to the company's registrar or any other formalities to be done. By this approach, you can also easily keep a tab on the prevailing trends of the stock market. By holding a demat account, need of brokerage charges is also eliminated.

 

By having a demat account, you will always an opportunity to invest in various asset classes including gold ETFs and commodity futures as well. Many investors are unable to participate in the markets because they don't have one. Opening a demat account is the very first step to start trading in stocks. Nowadays, it has become mandatory. Any process related to the account or trading will be less time consuming if you are holding a demat account. Be it trading, dematerialization of stocks, address change or any other update about you and your profile.

Demat account opening is mandatory if you want to invest in stock market. Know how to open demat account in India and what are the benefits of opening dmat account. http://www.demataccountopening.in

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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