The Benefits Of Having A Demat Account With A Bank Account

A Demat Account is an online repository that allows investors to store their equities and other financial securities in electronic format. The account contributes to safe and fast trading immensely.

Understanding Demat Account

An online demat account works the same way a bank account does. You deposit cash in your bank account and your demat account holds financial securities, including stocks, mutual funds, government securities, exchange-traded funds, derivatives, commodities, etc. 

Storing investments electronically in a demat account eliminates the risk of losing or damaging securities, fake securities, and delayed credits of equity ownership.

It has eased the entire procedure of investing, holding, and monitoring securities. Also, it is a convenient, cost-efficient, and faster way to invest in the stock market. Enter the stock market without the need for any sort of paperwork.

The Benefits of a Demat Account with a Bank Account

Almost every individual has access to a bank account; savings or current bank accounts. You need to link your demat and trading account with your bank account. However, you can open Demat account linked to your bank account to ease the process of entering the stock market. It simply means it involves less documentation as compared to opening banks and demat accounts separately. When linked with your bank account, trading transactions become easier to track. 

Should You Consider Discount Stock Brokers to Open Your Demat Account?

Discount brokers have gained traction in the stock market. They are known for cost-effective demat and online trading services. They focus on offering a robust online platform for smooth trading transactions. 

Numerous investors consider discount brokers to open a demat account due to the ease of opening a demat account online. The following are the benefits of opening a demat account with discount brokers: 

• 100% Digital Process: Discount brokers ease the demat account opening process by leveraging technology. You need not step out of your home to complete the process. From filling out an application form, and submitting documents to completing KYC (know your customers) formalities, every step is digital. You just need to visit the broker’s official website, submit the form and complete KYC by recording a short video for self-declaration.

• No Demat Account Maintenance Charges (AMC): There are different types of demat account charges. One of these is AMC which can be charged monthly or annually. You need not pay maintenance charges to renowned discount brokers. They have waived off AMC for the account holder.

• Minimal Documentation: You can complete the account opening process with basic KYC documents. The broker will ask for your ID proof, address proof, and PAN card to open your demat account. You need to upload soft copies of your documents online.

• Free Demat Account: Stockbrokers allow investors to open a demat account for free of cost with their subscription-based brokerage plans. 

• Low Brokerage Charges: Discount brokers offer subscription-based brokerage plans. These are specifically designed plans for beginners and professionals to offer cost-effectiveness in stock trading. They charge a flat commission as trading brokerage irrespective of the trade value.

• Quality Customer Support: Demat and online trading services are the core services of stockbrokers, unlike banks. Most communications and customer interactions with discount brokers are done through email and chats using technologies like chatbots, AI integration, and machine learning, offering 24×7 customer support services.

Thus, if you already have a bank account and want to open a demat account, you can consider discount brokers for easy and quick demat account opening. It is the best choice for long-term investors whose trade frequency is low or seasoned traders capable of conducting their research Active traders who undertake high-volume trades can also benefit from low brokerages.