Everything changes and evolves from clothes to food to the way you live. It also includes the ways of making money. Trading and investing have also transformed over time, making it easier for everyone to track their funds and earn decent returns. You invest time and effort in selecting the ideal funds for investment and dealing with the same.
We do not follow the traditional investment techniques anymore. Instead, we open a Demat Account to invest in the Stock Market electronically. We are now aware and conscious of our decisions while understanding our goals and returns. Let us discuss the basics.
What is a Demat Account?
Almost everyone has a Bank Account to deposit and withdraw cash. The Demat Account is like a Bank Account for holding securities in electronic form. You can keep money and withdraw whenever you want. To open a Demat Account online, you need not require a minimum balance or hold any stocks. You can open one even without including any stocks in your portfolio.
On the other hand, a Trading Account helps you buy and sell securities. Once you open it, you get your Trading ID. The purpose of online trading is to ensure you have a hassle-free buying and selling of assets or securities.
Types
There are different types of Demat Accounts available these days, including regular, repatriable, and non-repatriable accounts. A standard Demat Account is ideal if you are a residing Indian and want to electronically store your Securities or Equities. If you are interested in investing in IPOs, these accounts are helpful.
How to open it?
18-year-olds with a PAN Card can approach the depository participant or DP by acquiring details and Demat Account opening charges from the official Central Depository Service or National Securities Depository Limited. For opening Trading Accounts, approach a broker or broking firm.
Provide details and proofs of address, PAN Card, identity, etc., while filling in the KYC details correctly. You can use both accounts after a few days from the verification date.
Eligibility
Hindu Undivided Families (HUF), resident Indians, non-resident individuals, partnership firms, and companies can open an account through the online trading app. Minors are also eligible for it but require a parent or guardian’s operation until they become adults.
Points to note
The best trading platform is developed by stockbrokers while keeping clients’ requirements and demands in mind. To keep pace with other broking houses, they upgrade the trading terminals regularly with tutorial videos, guides, and tips, increasing speed and efficiency. They also have advanced analytical tools to merge historical data and trends and make predictions accordingly.
Conclusion
Traders handle the complete lifecycle of trading through the platform, like buying or selling shares, monitoring their funds and transactions, checking real-time live updates from the market, seeing current stock quotes, taking expert advice, analysing market trends, and many other activities.
