Want To Trade in Shares? Open A Demat Account Now
Everyone is trading online and earning huge rewards. There are plenty of ways in which you can trade online and maximise your profits. From share to commodity trading, there is a huge list of trading opportunities. People are trying to monetise their trading knacks but often forget about keeping it safe.
You must have heard about Demat account as an integral part of the trading world. It is a dematerialisation account that allows you to hold shares and security in electronic form. It is mandatory to open Demat account if you are planning to trade in shares.
An Overview of Demat Account
The concept of Demat account was introduced back in 1996. Back then, it was an alternative to share physical certificates. Gradually, it emerged as the safest way to secure your securities and shares. It not only eases the share trading process but also safeguards you from the possible risks.
Here’s why you need to open Demat account to trade in shares-:
Safety at its Best
Prior to the age of the Demat account, storing the shares physically and maintaining them became a strenuous task. It was getting risky and precarious to hold them physically. With the introduction of the Demat account, shareholders and traders can safely keep their shares electronically and add layers of security into it.
Mandatory For Trading
It is not an option that you are preferred to choose or let go; today if you want to trade in shares, you must open a Demat account. All the stock trading is done electronically, so there is no chance that you can carry on without an account. You need to settle the shares electronically.
Multiple Layer of Security
When you have safely kept your shares in your Demat account, you don’t have to worry about anything. Furthermore, you can add multiple layers of securities to your shares. There are different types of risks involved in the share market against which you need to secure your shares. For this, you need to apply various layers of security to the shares according to the risk factors of your shares.
Different Securities in One Account
When you open a Demat account, you not only save your share but can also use it to store different financial products like equity, mutual funds, debt securities, etc. It is a hassle-free way of storing your securities under one roof without worrying about the risks.
You don’t need to have any external utility to manage your Demat account. You can monitor all your saving, investments and trading development of your account through your smartphone, laptop, tablet or any other smart device. It gives you the freedom of trading from any corner of the world. You don’t need to visit your broker every time you need to invest.
The Bottom Line
The share market is filled with uncertainties and risks; you need to safeguard all your interests by taking the corrective measures. Demat account is the first step you need to take before starting to trade in shares. The above mentioned were the benefits of opening a Demat account right now.