Looked over as an essential prerequisite in terms of stock trading a Demat account has unparalleled benefits for the trader/ investor. But before jumping on to the benefits of the same having a perfect knowledge of what is a demat account is important.
What is a Demat account?
Demat is an electronic account used by stock traders to store their shares and security. The stock and share included here are the ones that are dematerialized from physical to electronic shares. digital is an approach towards Indian stock trading that has enforced governing excellence in the field.
Opening the Demat account is not a tough task at all. It takes hardly 5 minutes to get the one activated. Online stock trading buying and selling of shares is the main purpose of opening the same. It allows the facilities of holding stocks and shares, securities and funds, bonds are mutual funds etc. under a single account without any hassle. The completely secure end to end encryption has been the main reason for its digitalized popular acceptance. The national stock exchange introduced it in’96 for the first time and then onwards the same has been contributing to the stock market without any fail.
A long list of benefits stands in favour of the same. The process of dematerialization, that is, converting the physical stock to the electronic form isn’t an easy task but through this account, the same is convenient and accessible across the globe. Let’s have a look at some important benefits of the demat account.
Benefits accrued by opening a demat account
- Easy and quick transfers
The same being a digital source and secured way of holding the dematerialized shares and securities allows quick and hassle-free transfers eliminating the chances of mishandling, theft or forgery. Once approved the stocks can easily transfer to any account. The immediate transfers and automatic bonus merger into the account is an important benefit of the same. The benefit of cutting off trade cost due to the absence of stamp duty in transfers add to the potential features of the same.
- Ease of tracking the trade activities
The Demat account is a digital account and hence possess the feature of easy accessibility from anywhere across the globe. This makes the tracking of the stock related trade activities easy and thus always keep you updated and secured. The seamless process has made the operation of accounts easier and more convenient. The digital transformation is easy to handle and effortless to be operated.
- 24*7 accessibility
Due to the digital nature of the Demat account, the investor or trader funds the same assessable all the time round. This is a perfect advantage in the context of the busy and hectic schedules of people around the world. The digitalized platform in form of a Demat account prevents you from rushing to the stock market again and again. Thus, get the benefit of saving time this offers you the facility of automatic credits in terms of buying and selling of securities. This being done at any hour of the day makes the process convenient and customized.
Summing up, the benefits can be shortlisted as:
- Automatic access to credits, bonuses, issues, sale and purchase of stock trading.
- 24*7 accessibility.
- Eliminating the risks and chances of forgery.
- Facilitating digital security storage.
- Quick and hassle-free transfers and automatic trading.
- Time and money-saving.