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What are the advantages of trading apps?

by Hitesh Varpe Finance Consulatant
The marketplace is full of opportunities for growth and development. It has made people progress financially and also allowed them to track their investments. Many people have found employment while trading on different financial platforms and have gained benefit from them. They can multitask quickly and give time to their families. They can maintain a work-life balance and give priority to every individual.

With the help of a Demat account, investors can store their shares and securities electronically. The concept was introduced in 1996 as an alternative to physical share certificates. The account does not only make share trading quick but also eliminates all the risks associated with physical share certificates. It also stores a variety of investment instruments such as equity shares, exchange-traded funds, bonds, debt securities, mutual funds, and government securities, among others.

In India, every trader must own this account to compulsorily for trading in the stock market. Like a bank account, this account is either credited or debited each time an investor buys or sells shares of a company. All the Demat accounts in India are maintained by two organisations, namely National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

How does the dematerialisation process work?

The process of dematerialisation is simple. Firstly, the investor must open the account with a depository participant. DP is an entity that acts as an intermediary between the investor and the depository (either NSDL or CDSL). After activating the account, send a duly filled Demat Request Form (DRF) along with the physical share certificates to the depository participant who will then process the request by sending the share certificates back to the company. In addition to this, they will also send a request to the company’s appointed Registrar and Share Transfer Agent (RTA) through the depository.

Upon approving the request, the company destroys the share certificates. It also sends a dematerialisation confirmation to the depository. They process the information to the DP and credit the account with the relevant number of shares.
Since the process is quite long and extensive, a trading app helps investors proceed with their trading accounts without wasting time. They can access the stock market even while they are travelling from their phones with the help of popular apps.

Following are the benefits they offer:
  1. Convenient to use
  2. They can save time
  3. Most of the apps are available free of cost
  4. The investor has complete control over the trade
  5. Fewer chances of errors
  6. All-time monitoring of investments
  7. Availability of trade reports and other useful information


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About Hitesh Varpe Junior   Finance Consulatant

1 connections, 0 recommendations, 15 honor points.
Joined APSense since, June 3rd, 2020, From Mumbai, India.

Created on Sep 14th 2020 05:14. Viewed 321 times.

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