Share Trading With Demat 

We live in a world where there is no dearth of choices: whether you wish to purchase a vehicle or a house or place an online food order, there are ample options at your disposal. When every facet of your life is defined by choices, why should your investments be any different?! 

You can choose to invest your money in various financial instruments, and the stock market is amongst the most prominent investment avenues across the globe. If you wish to invest in India’s stock market, you shall require a trading account and a demat account. In this article, we shall explore. 

How to open a demat account 

With the dematerialisation of securities, stock trading in India has become seamless and cost-effective. Now you can place buy/ sell orders from the convenience of your home/ office/ car and have your securities safely moved to and from your demat account. 

In order to open a demat account online, you can follow the steps mentioned below. 

  1. Select a registered Depository Participant (DP) and visit their official website. You can also directly visit the website of the NSE or the BSE to choose a DP there. 
  2. Complete the Know Your Customer requirements to open a demat account and submit 
  • A valid proof of identity 
  • Permanent Account Number 
  • A valid proof of address 
  • A valid proof of income (for trading in derivatives – options and futures in the stock market) 
  • Passport-size photographs 
  1. Once your demat account application gets verified, your DP shall create your demat account and share the account particulars with you, following which you can start trading. 

Advantages of online stock market trading with a demat account 

Online stock market trading with a demat and trading account carries a host of advantages. Here are the major benefits of online stock market trading:

  1. Seamless process of trading: 

With a demat and trading account, the process of online stock market trading in India has become simple and transparent. You can check real-time market information and place buy and sell orders for stocks accordingly. Upon the completion of the settlement period, your purchased securities shall get transferred to your demat account and be safely stored there. 

  1. High degree of liquidity

Another key advantage of online stock trading is that you can enjoy a high degree of liquidity vis-a-vis your investment decisions. There is no need to wait for physical share certificates, which makes it easy to sell your securities should you wish to. 

  1. Cost savings

Online stock market trading through a demat account is also highly cost-effective. Since the securities being traded are transferred in a dematerialised form, they do not attract costs such as stamp duty. Furthermore, brokerage costs for such transactions are also feasible and transparent. 

  1. Time-efficiency

One of the marked features of online stock market trading is the element of swiftness and time-efficiency. Once you place a buy or sell order, the relevant stock exchange matches the order with a corresponding sell or buy order, and executes the transaction. The settlement of securities also happens extremely quickly (T + 1 days in case of stocks), making the entire process quick and efficient. 

  1. Ease in the receipt of corporate benefits

It is convenient to receive corporate benefits such as dividend on shares, interest on bonds/ debentures, etc. through a demat account. You need not wait long periods of time to receive the corporate benefits owed to you. 

  1. Convenience in monitoring your portfolio

When you engage in online stock market trading with a demat and trading account, you get easy access to your investment portfolio. You can check the current value of investments as well as the gains/ losses thereto. Furthermore, you can peruse valuable market data reports and insights which can help you in your investment decisions. 

The Bottomline 

Online stock market trading with a demat account is a transparent and cost-effective way to invest in the stock market. You can get started on your trading journey by opening a demat account online now. 

By rihan

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