Best Demat and Trading Account in India 2021

Best Demat and Trading Account in India 2021

A Demat account is a term dematerialized account that is used to hold the investment securities such as shares, mutual funds, government securities, bonds in an electronic form. In this way, the Demat account minimizes the hassles of physical handling of documents and maintenance of security-related documents. 

Also, a Demat account helps you to maintain a proper record of all the financial securities such as shares, mutual funds, bonds in one place.

If you are seeking the best Demat account, you must check all the details of the stockbroking house, or else you might need to pay a heavy account opening and maintenance fee. 

Importance of a Demat Account

  • A Demat account allows you to quickly transfer shares.

  • It is responsible for the elimination of theft, control, and losses of physical shares.

  • It is a digital medium for holding shares and securities.

So, why do you need a Demat account? If you are a beginner who has no idea about trading but seeking to get the best returns from the stock market, you will be required to open a Demat account from a full-service stockbroker.

Type of a Demat Account

Demat account is basically of three types: 

Regular Demat Account: 

A regular Demat account is primarily used by Indian citizens to perform transactions of securities i.e buying and selling of shares.

Repatriable Demat Account:

The Demat account is especially for NRIs who can transfer the funds across the sea.

Non-Repatriable Demat Account:

A repatriable Demat account is also an NRI Demat account that is linked with an NRE bank account. 

Benefits of Demat Account

Removes the risk of paper-based share certificates

Before the emergence of Demat accounts, shares were used to trade in a physical form. Also, the shares existed as physical certificates. For instance, you would require to maintain a bundle of share certificates if you hold multiple shares. 

Maintenance of physical share was extremely difficult as it involved losses, theft, tampering, and forgery. However, with the arrival of the Demat account, all the shares can be stored in electronic form which is quite safe and secure.

Convenient Transfer and Storage of Shares

The Demat account enables you to store multiple numbers of shares. Hence, allows you to trade in volumes. It also facilitates the ease of transfer of shares while trading online.

Easy Access Online

Top-notch stock broking companies allow you to access your Demat account anytime. 

Nomination Facility

A Demat account provides the facility of nomination. If in case the account holder dies, the account can be transferred to the nominee. 

Process of Opening Demat Account

To open a Demat account, you are required to find a top-notch stock broker that offers outstanding stock trading services at affordable brokerage rates. If you want to open a trading account with a grade stockbroker such as Swastika, you need to complete a completely paper-based form. 

With a stockbroker like Swastika, you can open a Demat account within 15 minutes.

 Below are the steps of opening a Demat account:

  • Fill up the account opening form.

  • During the account opening process, you need to enter the following details including name, email ids, phone number, address, and Demat account.

  • Fill in your bank account details. 

  • After successfully submitting your form, you will receive a call or message from the stockbroking house.

  • Upload the necessary KYC details for identity proof. 

  • In this process, you have to upload all the necessary documents such as Aadhar Card, PAN Card, Voter ID, and more.  

  • Once your application has been submitted, you will get a confirmation call from the stockbroking house.

  • After receiving approval, you will get your Demat user id and password.

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Opening Demat Account To Start Stock Market Investment

Opening a Demat account through a stockbroker is the primary step towards investment. But, before starting stock trading, you will be required to have a bank account, a Demat account, and a trading account. 

Do remember, there is a difference between a Demat account and a trading account. A Demat account is a deposit account that is used to hold financial securities in one place. A trading account, however, is used to make transactions in real-time. A trading account allows you to invest in a wide range of investment securities such as stocks, commodities, mutual funds, derivatives, bonds, and more.

After reading the above points, you might feel that managing a 3 in 1 account is quite hectic. However, this is not the case. A three-in-one account makes your trading process faster as it minimizes the time in switching between accounts. 

How to Use a Demat Account

Using a Demat account is quite a simple process. It helps you to transfer funds from your bank account to a trading account. To perform the seamless transaction, it is important to connect your Demat account with your trading account and bank account.

As the funds are added successfully to your bank account, you can place an order to buy shares. Once the order gets confirmed, the shares will get transferred to your Demat account after T+2 days. 

Needless to say, the Demat account and trading account are interconnected with each other and hence the transfer of funds and shares happens smoothly. Like buying, you can also sell shares by placing a selling order through your Demat account.

Benefits of having Swastika’s Demat Account

Opening a Demat account leads to a lot of benefits:

  • Demat accounts allow traders to make transactions convenient, simple, and time-consuming.

  • Zero paperwork is required to register a transaction.

  • Demat account is integrated with other accounts and therefore it is used for holding debt and equity instruments.

  • Removes multiple communications: Every shareholder is being notified whenever he performs transactions thereby removing the need to contact investors, traders, and companies.

  • Demat account eliminates the transaction of lots. For instance, now a single share can be bought/sold easily unless earlier when shares were only transacted only in lots.

Take away

The Demat account came into existence in the year 1997. Before this, shares were physically traded, however with the advent of technology, shares are placed in an electronic format. With the help of a Demat account, you can perform transactions i.e buying and selling of shares without needing any paperwork. 

For the opening of a Demat account, you need a trustworthy stockbroker, and here is where Swastika comes into play. The swastika is a stockbroker that suits every trader whether he is a beginner or experienced. With Swastika, trading becomes easy and hassle-free. 

Also read: Avoid these intraday trading mistakes to succeed