To deal with securities in the stock market one has to fulfil various formalities. Another thing to be considered is to hire the services of a broker. One can go with an option a full time or discount broker but hiring of such services is very essential. There are many pre-requisites which the individual investors have to complete before investing in securities. One such prerequisite is opening a Demat account. Many companies provide the feature of free Demat account.
This account is a digital-based account that will help in holding the stocks and securities in dematerialized form. The SEBI has issued various guidelines regarding the opening of this account. The individual has to follow all these guidelines. The account opening decision must be taken after consideration to various factors like the brokerage charges, maintenance charges and many more.
There are many benefits to having a Demat account. Some of them are mentioned as follows:
• It helps to ensure safety and security of the transactions: This account will act as a digital-based locker and will ensure that all the securities are there in digital form. This will help the investors to keep their investment secure with no risk. All the securities can be held in these accounts with a huge level of safety and security. Hence, this is the best medium to indulge in stock market transactions.
• It is very easy to maintain: The online-based account is very easy to operate as well as maintain. A lot of brokers provide the facility to maintain these accounts. On the other hand, the physical certificates of shares are very difficult to maintain which is the main reason people opt for this service. These kinds of accounts had to provide several benefits and resolve all the issues faced by investors.
• This is a highly cost-effective option: The charges associated with physical certificates are eliminated in this case. The brokers who operate and open such accounts also charge various kinds of nominal fees for all the services which they provide. Some of the companies also provide the option of free Demat accounts to the investors.
• These accounts are very easily assessable: A lot of financial institutes and companies provide online application based account platforms which will further help in assessing the services. The investors can very easily enter into transactions with the help of these applications. All the services associated with the accounts are very easy to access as well as operate. One can very easily invest in securities and monitor these securities using such accounts from anywhere and at any time. A lot of benefits and features, provided by Demat accounts turn to be the reasons for their popularity. This concept has revolutionized the process of investments in the stock market. Every investor has to open such accounts before he or she can start investing in the securities. A lot of companies like wisdom capital provide such services at the most reasonable rates in the sector. They also provide time to time assistance to the investors so that the whole process is hassle-free.