What Is A Demat Account & How Does It Benefit Me?


A demat account holds securities in digital format and helps you to trade in multiple market segments like delivery trading, margin trade funding, currencies, commodities, F&O, etc. You can purchase and sell stocks seamlessly via a demat account. Also, viewing real-time prices of stocks and analyzing the fundamentals of stocks is possible through the interface provided by a demat account. You will not face any hassles related to paperwork while transferring shares from one demat account to another. You can also open multiple demat accounts with the same or different DPs to manage your investment portfolio without any issues. Due to the availability of multiple trading platforms, many DPs have reduced the brokerage and other costs associated with a demat account. 

Your securities are held securely in a demat account as they are not prone to theft and damages. Also, most DP allow you to open a demat account for free. To open a demat account you need to visit the online portal of the DP and fill the application form online. Once you submit the documents and complete the verification process, the DP will allocate a demat account number to you. You can login to your demat account and start trading online shortly after this. 

 

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