Have you ever come to your mind that what is Demat and Trading Account and how it works You will see many articles and posts on many lakhs on the internet but you have not got the information, then through this information we will know what is a Demat Account. Will also tell about its benefits
Through Demat account, people can buy or sell shares in the stock market, to open this account, you must have a PAN card, without a PAN card, you will not be able to open an updated account.
If you are searching how to create demat account or how to create trading account, information about how to create account for share market will be found here.
A few years back, whenever you buy shares of a company, the company used to set you some documents related to the stock. Those papers used to be proof that you have invested in that company and have bought stock in that company, but after the demat account comes, everything has been changed, so let’s know what is a demat account, what are its benefits.
What is Demat Account
Demat account is used by people to buy or sell shares, just as people keep their money in a bank account, in the same way people keep their shares in a demat account, whenever we take money from our bank account, it comes from us in physical form. See you in
But when you bank digital way how to pay anywhere with debit card then it also uses electronic money transfer on top of digital payment. Similarly, when you have shares in demat account, we can transfer them to another account in demat form, so we do not need to keep the shares in physical form, it is an online electronic transaction process.
In other words, if the shares are bought and sold digitally i.e. electronically, the account is called Demat account.
As I told earlier that whenever you used to buy stock market stock in the old times, the company sends you the documents related to that stock, it was a proof that you have invested in the stock market.
But whenever you used to sell that stock. So he used to first go to the office of the document company, see the company, then you could sell the stock and get the money accordingly, this process was complicated with a lot of time, that’s why most of the people avoided investing in the stock.
But in today’s time the world has made a lot of progress, as soon as you buy the stock, it comes in your account in a short time and you can also sell the stock, then your money will come in your demat account in no time. Is. Nowadays you do not even need a computer to buy and sell stocks, you can also buy and sell stocks by opening a demat account in mobile.
Types of Demat Account
Demat account is the account that allows you to buy and sell shares online electronically. There are mainly three types of Demat account.
- reversionary account
- Non-repatriation Demat Account
- regular demat account
Benefits of Opening Demat and trading Account
There are many benefits of demat account, let us know about these benefits.
- After buying shares from demat account, you do not run any risk of it being stolen or fraudulent. This is a safe method as all the shares are electronically transacted online.
- Earlier it used to take months to buy and sell stocks in the stock market, but now it is not so, you can buy stocks instantly with demat account.
- Earlier it used to be very difficult to sell shares, you just had to sell shares in a group, with this you could not sell an odd number of shares but now it is not so, you can buy a share through your demat account and sell it. can also.
- Now you can open your Demat account sitting at home and work it easily on your computer laptop through mobile.
Demat Account Opening Fees
If you are thinking that you will have to spend a lot of money in opening a mind account, then you are wrong, you can open a demat account with just 300 to ₹ 700 and start investing in stocks. But there are some apps that allow you to open a demat account for free.
To open a demat account, you just have to spend Rs.300 or more. DP charges you many charges for running a demat account. Everything has different charges or charges may vary from company to company.
The first fee that is charged is the account opening fee, after that the fee charged for managing the account is the annual management fee. Manages the account.
Custodian Fees- Depending on your share number, either the company takes it in one go or it is up to the company to recover month and month.
transaction fees– Transaction fee means that whenever a share is exchanged in the account, the company charges a fee. The fee can be according to the number of shares or their price.
If you are new to the stock market, then you would be advised to take the help of a broker before investing.
Where to open Demat and Trading account
There are some popular brokers where you can open your Demat Account online.
- zero demat account
- Angel Broking
- ICICI Demat Account
- grow app demat account
- 5 paisa
- sherkhan share market app
- et money
- There are many more broker apps.
These are all famous applications. You can easily open Demat Account through all these broker apps. And through these apps you can trade (buy and sell shares) with any company.
what is trading account how to open online trading account
Friends, we have learned about opening your Demat Account, above that we told you can generate Demat Account through any application and now we are going to know about Trading Account, how to open a trading account, where is the Trading Account opened? goes.
So friends, many years ago, when we did not have an online procedure, then we had to do physical trading, we had to trade on paper, if we want to invest or do trading, then the paper is there by signing and submitting the application. We used to send taxes and then we used to get shares and we used to get their certificates here.
So this process used to be very long, it used to take many many months for us to get a share certificate which those people used to send here on paper by signing them and after getting approved from there people used to get the certificate. It is that we had a material requirement in this, from which we used to share it by sending it physically.
But when an online process came to us, we dematerialized it. Meaning here we did not keep any material and made all the process online. Now we don’t need to sign any physical certificate or form here and after 1996 when SEBI depository project came then a new project market came in the world.
Due to which the online process was started by closing the method of demat account i.e. physical document. Friends, whenever you open a Demat Account Trading Account, it will not give you any such separate option, whatever application we have mentioned above to open the account. They do both your work i.e.
Demat account and Trading account simultaneously. For all the documents, the demat account is opened through an app.
And the trading account is opened through SEBI. The job of a demat account is to put your friend in the stock market and keep it like a bank keeps your money to you. Trading account Putting your money in the stock market.
Where to open Trading Account
And if you want to open a trading account, then you can open a trading account through any application like
- Kite by Zerodha How to open Trading Account
- how to open upstox trading account
- How To Open Angel One Broking Trading Account
- How to open 5paisa Trading Account
- How to open Groww Trading Account
- How to Open Octa Fx Trading Apps
- How to open Sher Khan Demat account
- How to open IIFL Demat account
- How To Open Motilal Oswal Demat Account
- How to open HDFC securities Demat account
- How to open Kotak securities Demat account
- How to open ICICI direct Demat account
- How to open Axis Direct Demat account
By downloading all these apps mentioned above, you can open Demat and Trading Account, further we will tell about all the applications one by one, in this we will tell in detail how the account is opened.