Best demat account and its features

A demat account is suited to hold all the shares purchased in electronic or dematerialized form. The account type functions similar to any other bank accounts as it too holds the certificate of financial instruments like mutual funds, government securities, shares, bonds, and exchange traded funds (ETFs).

Basically, physical shares are converted into electronic format through dematerialization process. An account holder needs to have a demat account number to enable electronic settlements of the trades. It is essential to choose the best demat account just like choosing the best bank for depositing the funds. Securities in demat account are carried out electronically and are debited and credited accordingly. This type of account can be opened with no balance of shares. You can have a zero balance in your account.

Significance of best demat account:

Holding physical shares is quite a hectic task as it involves a lot of paperwork, time consuming process, and risk of fraudulent shares. Therefore, to have easy and quick trading experience, Demat account is an ideal option to trade in stock exchange market. As the demat account holds the financial instrument certificates, it carries out the process of converting physical shares into electronic form and credit the amount to investor’s demat account.

Benefits of best demat account:

Less paper work – unlike physical trading, all investment transactions are held electronically in a demat account, which ultimately eliminates the need for much physical securities and associated paperwork. This makes the entire process hassle-free and convenient. 

Lower costs – Physical trading of shares involves higher transaction costs as it entails stamp duty and handling charges. Often these costs cannot be anticipated before the transaction is complete. Thus, demat account lowers the cost of transaction by eliminating additional charges completely.

Eliminates risk involved – Dealing with physical trading involves a lot of risk subjected to physical damages, lost or misplaced, fake securities, etc. On the other hand, electronic trading is a way too transparent process, which eliminates the risks involved in physical trading.

Quick transactions – When securities are traded on electronic platform, the transactions are much faster and easier, which results in instant credit to the investor’s demat account. Physical trading deliveries would take often weeks.

How to open demat account?

Several banks, financial institutions, and brokers provide demat account facility. One needs to choose the best demat account with attractive interest rates, in case an individual have savings account with the same bank or financial institution. To open an account, click https://www.applykaroo.com/demat-account. 

Benefits of opening demat account:

• Zero account opening charges.
• Margin facility to trade on existing holding. 
• Keep track of all investments – Mutual funds, equity, Gold ETFS, and preference shares at one place making the transactions easier and convenient.
• No separate DIS slips required for trading the shares.