Finance

A Guide to Demat Account Trading

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Guide to Demat Account Trading: Gone are the days of tiresome trading with paper-based stocks that took days or weeks to transfer. Demat accounts allow you to store all your stocks in electronic or “Dematerialized form,” similar to electronic money in digital finance apps. Combined with online trading, Demat accounts fast-track your journey to riches by offering endless benefits like true “Anytime, Anywhere” trading, superfast settlements for quick credits, freedom from tedious paperwork and handling costs, and much more. 

No doubt, it is rightly said that online share trading with Demat accounts offers countless benefits. Let’s check them out.

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1. Freedom of any time, anywhere accessibility:

No longer burdened by the space and time constraints of physical stocks, electronics stocks in Demat accounts can be accessed from anywhere, anytime.

2. Quick credit for investors – 

Goodbye to long delays in processing Demat accounts makes the transfer of stocks super easy and laser fast. No more delays for settling your trades. Investors enjoy quick credit with swift, efficient settlements.

3. Precious cost-savings on administrative overheads: 

Demat trading does away with costs involved in stamp duties, handling charges, and transferring costs. With Demat trading, no more administrative overheads will eat into your hard-earned trade gains!

4. Get loans with Demat stocks collateral:

An extra perk of Demat accounts is the ability to get timely, valuable loans against your Demat stocks as collateral!

5. No more handling loads of paperwork:

Demat accounts make managing stocks super easy. You do not have to mess around with sheaths of papers that never seem to sort out!

6. Risk elimination – your stock is safe and secure:

Demat accounts let you enjoy peace of mind with your stocks safe and secure. No more dangers of misplacement or physical damage are there that plagued paper-based stocks.

If you think it is difficult to trade through a demat account, then you are wrong. It is super easy. Stockbroking companies let you set up and trade with a Demat account in a breeze. 

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Here’s how to trade through a Demat account:

  1. You need to open a Demat account with a stock broking company called a depository participant or DP. It is important to always go for a well-reputed stockbroker that provides a wide range of services with affordable pricing.
  1. You then need to link your trading account with your Demat account. It is preferable to hold both these accounts with the same company to ensure smooth integration and processing.
  1. Next, you place a trade order through your trading account. Your broker forwards it to the concerned exchange.
  1. The order is processed at the exchange after a few checks about your Demat account and transaction details.
  1. As the trade completes, stocks are debited or credited immediately from your Demat account. And that’s it! Easy as that!

If you are looking to get into investment as your next money-making factory, Demat accounts are the perfect solution for you!

5paisa is a leading online investment start-up that lets you set up a Demat account in less than 5 minutes. It offers multiple benefits, including 0% brokerage, direct mutual funds with no fees, actionable insights, and portfolio analytics. The company won the “Emerging Company of the Year” award in the BFSI space at the ET NOW- Business Leader of the Year Awards, 2019.

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