In today’s age trading in the stock market is very common. More and more people are indulging in trading and investing in the stock market. The reason behind the increase in the number of participation in the stock market is the opportunity to make good returns. Thus, the first thing which arises to the mind is that how to trade in the market? The answer to this query which generally comes in mind of almost investors is Demat account. Demat account is not only hassle and stress free, but also the most convenient and smart way of trading.
Demat account is short form of ‘dematerialized account’ is a paperless or digital (electronic form) way of buying and selling stocks and other financial instruments in the market. It is the best and the safest way of holding securities after they are purchased or dematerialized. It is a service provided by two depositories of India namely NSDL (National Securities depository Ltd) and CDSL (Central Depositary services Ltd). This account eliminates the risk of theft, forgery, loss and damage of physical certificates. Demat account also ensures immediate transfers of securities and once the trade is permitted, the shares and securities are automatically transferred to your account.
There are number of Depository Participants and Stock Brokers present in the market from where you can open your Demat account for trading online. But with the HDFC Demat account one can easily and conveniently trade in the stock market.
Demat account is short form of ‘dematerialized account’ is a paperless or digital (electronic form) way of buying and selling stocks and other financial instruments in the market. It is the best and the safest way of holding securities after they are purchased or dematerialized. It is a service provided by two depositories of India namely NSDL (National Securities depository Ltd) and CDSL (Central Depositary services Ltd). This account eliminates the risk of theft, forgery, loss and damage of physical certificates. Demat account also ensures immediate transfers of securities and once the trade is permitted, the shares and securities are automatically transferred to your account.
There are number of Depository Participants and Stock Brokers present in the market from where you can open your Demat account for trading online. But with the HDFC Demat account one can easily and conveniently trade in the stock market.
Things to keep in mind while opening a Demat account
- The first thing that you have to check before opening a Demat account is that the Broker you choose is registered with SEBI (Security Exchange Board of India) or not. It provides you extra benefits like calming that they are genuine stock broker. So be sure that broker you choose is registered with SEBI. The HDFC Demat account offers a Safe, Online and Seamless mode to keep track of the investments also.
- Always try to select the broker which charges you less brokerage, because the high brokerage eats all your profits.
- A Demat account has three different types of fees and charges namely conversion fee, annual maintenance fee and transaction fee. All these charges and fees vary from one depository participant to other. So, always check these charges related to Demat account and go with that DP which gives you the facility of the dematerialized account at low and convenient fee and charges.
- The price of stocks updates in every 2-5 minutes. Investors get obsessed with short term price fluctuations and take quick or sub-optimal decisions. But there is nothing to be obsessed about it. Avoid being too obsessed with the short changes in prices. So, it is advisable to check the prices of the stock regularly.
No comments:
Post a Comment