Stock market trading can be done by anyone and does not need any specialized training. Shares can be bought from companies after careful research and according to one’s needs. The prices of shares will keep varying on a daily basis due to many reasons and as a trader, one has to monitor the markets continuously. To do trading in stocks, one should have a demat and trading account. Trading account allows you to trade in shares as money from your bank account gets transferred to trading account and the shares you buy get credited to your demat account.
Dematerialization process was introduced in the 90s in the stock market. It is the process by which shares in physical form get transferred to electronic form. What is the benefit of holding shares in this form? You need not worry about theft or physical damage of shares. The shares can be stored in the safest way in this account. Transfer of shares too happen easily and in a short duration of time as there are no postal delays or any such practical difficulties that are usually faced by investors in case of physical shares.
How to open demat account:
One can buy or sell shares at his or her convenience using a demat and trading account. These days, one has to know how to open demat account online. One can open this account in a very simple manner by using PAN, AADHAAR, personalized cheque, etc. You can choose either a discount broker or a full service broker. Though the charges are less expensive in case of discount brokers, they don’t provide services like research or any stock recommendation. But full service brokers offer several services that are not provided by the discount brokers. Any person who is new to the stock market can select a full service broker as they will provide the required support and guidance. Opening online account is less expensive and also a quick process wherein accounts opened offline took a lot of time due to lots of paper work.
Any investor or trader can manage all transactions by himself at any point of time. Online and mobile trading platforms allow even a novice in the stock market to trade without any difficulty. One can trade or invest at his or her convenience through mobile trading app from any location at any time. You might have got an idea about how to open demat account by reading this article. So for what are you waiting for? Open demat account today!
Author Bio
Could the author of the article mention about annual charges for maintenance of demat account, and other expenses for Demat Account? If the Depository Participant demands annual maintenance charges from the client / Demat Account holder by submitting an extract of the Ledger Account of the client, could the client ask for the Depository Participant for official Bill for payment of Annual Maintenance Charges?