Demat Account Benefits
Demat Account
11 Mar 2022
Demat Account is a platform that provides investors with a convenient way to access the share market and trade in real-time. It offers a personalized trading experience and allows investors to trade in their favorite stocks and shares at the best price.
Demat Account is a complete solution for Equity Marketing. It is a digital solution for managing your share certificates. It was introduced in India in 1996 and has since become a household name. The Demat Account system eliminated tedious paperwork and the cumbersome need of holding physical share certificates.
With a Demat account, you can hold your investments in an electronic/digital format, facilitate easy trading and stock holding, and hold all your investments in one place. A Demat account is similar to a bank account because it holds all of your investments in one place.
Opening Process
You might have heard of the Demat account before. Demat account is a term used to refer to a company's domestic share register. In India, it is not mandatory to keep a domestic share register with a company. It is optional. However, companies are recommended to keep domestic share registers as they are more convenient to use and they help in the process of balancing the books. In order to open a Demat account, you need to get ID proof, which is a driving license or a voter ID card.
What to Consider When Signed Up For An Account
- Account Opening Fees
- Annual Maintenance Fee
- Transaction Fees
Trading online is becoming more and more popular. There are a lot of benefits that come with it, and it does seem like a good idea to start trading online. But, it is important to be aware of the hidden costs that come with trading online as well. Some of these costs include the cost of the trade, the fees, and the fees for the bank.
Even though the annual maintenance charge being zero for investment accounts is a recent phenomenon, it has been a welcome change for investors. The annual maintenance charge, also known as the brokerage fee, is a prepaid amount that is collected by your broker to keep your account active throughout the year. This is typically collected as a one-time fee at the beginning of the year and is typically Rs 300-800. However, many brokers in the industry have now begun to charge zero fees here as well.
Transaction fee charges levied by CDSL(depository) is a charges applicable whenever you sell shares from your DEMAT account. It is similar to how exchanges charge a transaction fee or how brokers charge brokerage.