5 Things You Should Know Before Opening Demat Account Online

5 Things You Should Know Before Opening Demat Account Online

What are Demat accounts?

Demat accounts have become an essential for stock trading ever since the computerisation of the stock markets in the 1990s. Demat and Trading accounts are used for stock trading. The demat accounts or dematerialised accounts hold or store the securities like share, bonds or mutual funds in a digital form at depositories that you can access using your demat accounts. These are then transferred to your trading accounts through which trading takes place. The introduction of the demat and trading accounts has given an opportunity for the new generation of stock traders who trade from the comfort of their homes. All major financial firms offer demat accounts that comes with attractive benefits such as free accounts and low brokerage rates. There are also firms which offers all-in-one accounts which includes demat, trading and savings account in the same package. Demat accounts offer fast and reliable transfers to your trading account and it is safe and secure at the same time. All the major demat account providers offers accounts under the depositories of NSDL (National Securities Depository LTD) and CDSL (Central Depository Services LTD).

How to open Demat Accounts Online?

How to open Demat account is a question that most people have at the back of their heads. It is much easier and hassle free. Most of the firms also offer the facility to open demat accounts online and in a paperless mode, you can visit the website of these firms to know How to Open Demat Accounts Online. All you got to do is upload all the necessary details and fill up the application form given in the website of the firm. The documentation required for the opening of a demat account are :

  1. Valid ID card
  2. Passport size photos
  3. PAN Card and
  4. Aadhaar Card.

The process is hassle free and easy. The application form is verified by the concerned authorities and the demat account is delivered to you. Generally, it takes less than a week’s time to secure a demat account. You can start using your account almost instantly after delivery. There are customer support facilities in place to assist the customers on How to Open Demat Account Online which you can take use of.

What are the benefits of Demat accounts?

  • There is no stamp duty on transfer of securities through demat accounts.
  • Ease of use and faster transfer of funds.
  • Much safer than storing paper shares.

Things to consider while choosing account

  • Open demat accounts with reputed firms.

There are lot of firms that have a shady-operations and notorious for fraudulent activities. It is always best to check the complaints about the firms and reviews from the customers before choosing firms.

  • Choose the firms which levies low charges.

Most firms offer free demat accounts. But there are more hidden charges involved that you should consider before choosing an account.

  • Get demat and trading accounts from the same firm.

It is preferable to open demat and trading accounts from the same firm to reduce transfer times and bad deliveries.

Which are the firms that offer demat accounts?

Most of the financial firms like ICICI, SBI, HDFC and Kotak Mahindra have divisions that specialise on demat accounts. Similarly, firms like Angel Broking, Zerodha, 5paisa, and Sharekhan, offer the facility to open demat accounts online. It is up to you to choose the ideal firm for your needs and you can refer to the sites which offers insights into How to Open Demat Account Online to know more.