A Demat account is considered to be an account that can be used to trade the shares. When you plan to invest in the market, the first thing that you need to do is to select a broker. After you have selected a broker, he will make you understand the importance of a Demat account and will also help you open it under his name. This account will be used to invest in the market by putting capital in it and then using it for the transactions. This record likewise assists you with associating with a dealer and getting your Demat account login details.
What is a Demat Account and How Do I Get One?
Since it is now so obvious what a Demat Account is, we should take a gander at how to get one. There was a time when people used to deal in physical shares. Then came the concept of dematerialization. Everything went online and hence the need for an account arose where traders can keep their capital. This account was known as a Demat account. If you want to open a Demataccount, then your broker can help you out. Usually, there is no charge for opening a Demataccount, but the broker has a set amount of fees that are deducted from the same.
Objective of a Demat account
When you invest in the shares the amount is reduced from this account, and the shares are moved under your portfolio. In 1996, India started the progress to a dematerialized framework and the Demat account was introduced.
Is there a minimum balance that you need to have in the Demat account?
No this is considered to be one of the best things that there is no set value that you need to keep in your Demat account. No matter whether you put 50000 rupees in it or you keep zero rupees it is your wish. You will need to add money to the same when you want to purchase the shares. If you already have purchased shares, then the amount that you get by selling them will come to your Demat account.
Dematerialized Account Benefits
The biggest benefit of having a Demat account is that you can easily deal in the market and buy shares. It is opened under a broker and helps in keeping all the records of your portfolio.
- It is basic and helpful to Hold protections in this record.
- On the exchange of offers, there will be no stamp obligation to pay.
- More secure than actual offers in paper structure, which are powerless against robbery and falsification.
- The trading of shares is really easy. All you need to do is to transfer the amount of capital in the account and you can buy shares with the same.
This was all that you need to know about the best Demat account. If you are also planning to invest in the market, then you must open an account with a broker like Share Khan and enjoy trading.