Why Do You Need To Open A Free Demat Account?

1. Why Do You Need To Open A Free Demat Account? The Indian stock market initiated demat accounts in the late 90s. This led to the closure of physical trading activities. Millions of people have switched over to the more convenient demat account, which can be easily linked to your trading account for investment purposes. Explain The Term Demat Account A demat account can aid investors in holding shares or securities in a unique digital or electronic format. Demat accounts are also popular as Dematerialised accounts. An investor can hold his bonds, mutual funds, shares, and exchange-traded funds together in a single place. With Demat accounts, you can be free of counterfeit practices such as theft and forgery. The Demat system via electronic platform has encouraged more and more people to learn trading activities and open a free Demat account. Demat Account Services Opening an online Demat account is a basic and undemanding procedure. It is a mandatory procedure for traders and investors involved in stock market dealings to possess a Demat account. Most banks and financial brokerage firms have helped people by presenting plans to open a free demat account. Brokerages provide free Demat accounts to link with trading accounts and related services.

2. A free Demat account means zero opening fees. Depository participants can also open Demat accounts for an investor. For instance, banks or brokerage firms waive off their fee and open a free Demat account for their client. Depository participants can waive the initial fee and also maintenance charges for the first year. Let us explore the benefits of a free demat account: ● Minimum Risk: Before demat accounts were introduced, people used to deal in shares with the help of physical (paper) documents and certificates. These could be tampered with, stolen, lost, or even forged. Moreover, the transferring of shares involves exhaustive paperwork, prone to human errors and delays. With a digital demat account, you can safely store away your shares and trading documents in a digital repository via the electronic channel. ● Affordable: In real-paper physical trading, there may be surplus charges including stamp duties, handling fees, and relative charges. Once you decide to open a free demat account, it can help do away with these expenses so that you need to give only the transparent brokerage fees. If you opt for a discount broker, you can save more money making it a cost-effective trading zone. ● Save Time: There are multiple benefits of buying and selling shares via demat accounts. You can deal quickly and easily without wasting time or effort. Similarly, you may boost share liquidity and transfer shares swiftly. ● Ease of Tracking: Demat accounts minimize the burden of physically tracing trading documents and they also eliminate the requirement for keeping records manually. All documents and investment records are stored digitally using secure servers. ● Corporate Gains: Demat accounts offer an auto-update feature, they can be automatically updated. For example, bonus issues, shares from companies, stock splits, etc will be mechanically updated. Thus, you can receive timely receipts, refunds, dividends, and bonuses directly into your account. Online trading is not only convenient but also offers automated and accurate solutions. ● Loan Availability: A Demat account holder can avail of many privileges. You can get a loan against a security amount (in your account). For urgent trading purposes, you can avail of such loans. ● Gain Odd Lots: Before demat accounts, the buying and selling of shares were strictly restricted to fixed amounts or quantities. This restriction posed a challenge for those who wanted to purchase odd lots, which are less than 100 shares for a stock. With the introduction of demat accounts, this issue was resolved successfully.

3. ● Diverse Investments: A demat account can be used not just for storing shares, it can also keep a wide range of investment details such as mutual funds, bonds, government securities, and ETFs to name a few. ● Easy Access: Once you open a free demat account, You may access your Demat account easily and quickly 24/7 via the online platform, from anywhere in the world. You can also use any kind of device to access your account such as a tablet, laptop, or smartphone. FAQs 1. Is it necessary to open a demat account? It is necessary or even mandatory to open a demat account if you want to invest in shares or participate in IPOs, according to the Indian stock market regulations. 2. How much time does it take to open a Demat account? Once you have associated with a reputed demat account provider like Globe Capital, it may take you less than twenty-four hours to open a free demat account and become active. 3. Do you require a Demat account for SIP? A demat account is compulsory only for stock market dealings or transactions. You do not require to open a Demat account for the sake of mutual fund investments, which includes SIP. 4. How do you open a free demat account? You can go online and open a free demat account. All you need to submit is your personal and bank details, your KYC details, and E-sign your account opening form. Within a few minutes, you will have a free demat account. Demat Account & Hidden Charges Numerous brokers, banks, financial institutions, and brokerage firms offer demat accounts for free to people, but there are certain charges involved. These charges are levied only at a later stage once he/she is operating the account successfully. Many demat account providers do mention these charges to their customers and do not keep them hidden. Protecting Your Demat Account You should exercise caution while choosing a provider or depository participant when you wish to open a free demat account. You can surf online and conduct some research. It is advisable to initiate two-factor

4. authentication during opening an account. You also need to keep a check on your account for any odd irregularities. There is no need to divulge your secret login password to anyone. Opening a free demat account should be an uncomplicated and hassle-free process. A Demat account involves the elimination of traditional and out-of-date physical trading processes. Opening a demat account with a registered depository participant can offer you added benefits.