Open A Demat Account
In those times transaction clearings took several days, and there was always the possibility of forgery, counterfeiting, or fraudulent transactions. All of this changed when online Demat accounts were introduced and in this article, we would discuss the top 5 reasons to open a free Demat Account.
Getting Rid of Physical Stock Keeping
Before digital trading was launched; people traded using paper certificates and physical bonds. This had a number of downsides, including stock misplacement, theft, certificate damage, and so on. All of these issues are addressed by the emergence and adherence to the online Demat account system, which provides users to hold assets digitally via password authentication.
Speed & Convenience
Consider the days since you had to contact an agent for every purchase and sell transaction you wanted to place. So imagine how angry you’d be if the broker failed to catch your calls and you missed out on a big trade. With the Demat Login system, you can place sell/purchase orders at any time and from any location using mobile applications or web browsers. This also implies that the need for middlemen has been reduced, and trade is becoming faster and easier.
Digitally Secure Transactions
Prior to the internet era, actual shares were the only way to trade. Furthermore, dealing with real shares exposes the complete trading procedure to hazards including theft or misplacement of paper shares. What was rather concerning were the cases of forgeries, which were difficult to detect due to the ease with which fake physical shares could be created. These hazards have been readily addressed because shares are now solely held in Dematerialized form in Demat accounts. This has opened a gateway for digitally safe and secure stock transactions.
Low Expenses
The expense of handling actual shares would easily exceed the cost to open a free Demat account. In past, other charges, such as stamp duty, were added to the handling costs. And, of course, removing paper documentation contributes to cost-effectiveness. There are no longer any storage fees that were involved with the physical shares. Demat Account charges are all pre-disclosed and regulated by recognised authorities.
Ease of Record Keeping & Management
Trying to keep track of the stocks you buy and sell on a daily basis becomes difficult if you do not have access to a Demat Account system. This activity necessitates the keeping of a separate record book, which is also subject to human mistakes. A Demat account, on the other hand, will immediately provide you with a full summary of every entering and outgoing shares position. This would also assist frequent traders in monitoring their progress and profit-loss data. With a data drive widely accessible to Demat account, investors and traders can gain insights into their market activities and make necessary modifications in their trading activities, with a click of a button.
Conclusion
The most reasons to own a Demat Account are Getting Rid of Physical Stock Keeping, Speed & Convenience, Digitally Secure Transactions, Low Expenses, Ease of Record Keeping & Management. You can trade from anywhere, at any time, without the need for a broker or human interference. So, don’t put it off any longer join & register your Demat account with a reputed broker.
