Have you ever come to your mind that what is the Demat account and how does it work? You will have seen many articles and posts on many articles on the internet but you have not received information. We will be a Demat account through this post and will be aware of the benefits that will be done.
Through the Demat Account, people can purchase or sell shares in the stock market. You must have a PAN card to open this account. Without the PAN card, you will not be able to open the Demat account.
Whenever you buy a company’s shares a few years ago, the company sets you some papers related to the stock. Those papers were evidence that you have invested in that company and keep the stock purchase in that company but after the arrival of Demat Account has all been changed. So let’s know what is this Demat account and why it is so important its full information.
What is the Demat Account
Demat Account is used to buy or sell shares by people. Just as people keep their money in the bank account, in the same way people keep their shares in the Demat account.
Whenever we take money from our bank account, they meet us in physical form. But as long as the bank is in digital currency. Whenever we pay anywhere from the debit card, then it also uses a format of Digital Payment i.e. electronic Money Transfer. Similarly, when we have shares in the Demat account, we can transfer them digitally into a second person’s Demat account. In such a situation, we do not need to keep shares in physical form.
In other words, if the shares are digitally called electronically, the Demat says. The full name of Demat is “dematerialize”. The process of changing the securities i.e. to the physical form is called dematerialization.
As I first told that whenever you buy a stock in the old time, the company sent you the document related to that stock. He was proof that you have invested in the stock. But whenever you used to sell that share, he first went to the document company’s office. There was seen by the company that when you sold the stock, then what was his feeling and according to that you got money. This process was also complicated along with a lot of time. Therefore, most people were avoiding investing in the stock.
But at today’s time, the world has made a lot of progress. As soon as you purchase the stock, it will come to your account shortly after. And if you sell a stock, then your money will be given to you in a while. Nowadays, you do not even need a computer to buy or sell the stock. You can do all this from your mobile.
To reach Demat accounts, you need Password and you have to put a transaction password for the transaction.
Demat Account opening fees?
If you are thinking that you have to spend a lot of money in opening the Demat Account, then you are wrong. You can open a Demat Account with just 300 to 700 ₹ and can start investing in shares.
To open a Demat Account, you have to spend just 300 or a few more rupees. DP (DP) takes many fees from you to run the Demat account. There is a different fee for everything. This fee can be different in different companies.
First of all, the fees which are charged are account opening fees.
After this, the fees that are taken to manage the account are Annual Management Fees. This fee takes the company in the beginning and manages the account by managing the account throughout the year.
Custodian fees depend on your share number. Either the company takes it at a time or recover the month rate month. Depends on the company to take fees.
Transaction fees imply that whenever a share is exchanged in a two-date account, the company charges a fee. The fee can be according to the number of shares or according to their price.
If you are new to the market then you will be given advice that before you invest, you must help a broker.
Who will open the Demat account
Two organizations are employed to open the Demat account in India, the first NSDL (National Securities Depository Limited) and the second CDSL (Central Securities Depository Limited). There are more than 500 agents called Depository Participants. They have to open a work account. And they are also called DP in a common language.
It is not necessary that DP is a bank. And only the same Demat account can open. Apart from this, there are many institutions that can open a Demat account. Some of these major institutions are Sharekhan, India Infoline, etc.
You can go to their office and open an account or you can open home with a support to the Beymat Demat Account online internet. The process is very simple. But to open it, a Pan card is mandatory to keep the attention.
Benefits of Demat Account
They have many advantages of the Demat Account, but let’s know some major advantages of the Demat Account:
After buying shares through the Demat account, it is equal to the possibility of being stolen or fraud because all the shares are in the digital medium of electronic. This is safe due to the risk of risk.
First used to move to the shares to move. It also used to take a lot of months. But now it is not so, you can immediately transfer them with Demat accounts. And after some time it seems to be seen in the account that has been sent to the Demat Account.
Selling the first shares used to be very difficult, you just had to sell shares in a group. Along with that, you could not sell the shares in the odd number but now it is not so. You can also buy 1 alone share through the Demat account.
Now you open the Demat account, then you can manage the account individually. This was not the first certificate for the first share.
How to Open a Demat Account in Zerodha?
Here I will provide you information about the method of opening a Demat Account in Zerodha, which you can follow yourself.
Step 1: Visit the Zerodha website and click on ‘Open an account or Open an account.
Step 2: Fill details – here you can fill in all things like your full name, mobile, and email and click on ‘Call Me.
Step 3: You will receive a call from the Zirodh local representative, and to sign the account opening form and collect the document, he will book a time to meet you. Which you have to decide when you can give time for it.
Step 4: You have to pay a fee to open the account by using NetBanking or a card. Whose information will be given by the representative?
Step 5: After depositing the document, your Demat and trading account will be opened in 4-7 days.
If you are submitting the only Form then you will have to send the Filled Application to the Address (Zerodha’s Official Address).
If you want to invest your money in Share Market then you can create your account on Discount Broker “Zerodha”. In it, you can also buy the Demat Account in it too soon and easily. It has been given a link
ICICI Demat Account
Benefits of ICICI Direct Securities:
3 These 1 Demat accounts that you have to keep money and get out and do not need to give funds and charges.
ICICI Direct is India’s largest brokerage firm, it is also a partial brand.
When you sell the stock immediately after your money you can pulse in the bank account.
You can handle both your bank account and trading account.
Investment is possible in almost all segments
Slow-moving trading platform on the Internet.
Special Feature to Buy Share on Limit Price through MyGTC
All investments are possible by the same website.
ICICI Porlod’s Bima Service also provides
Online Customer Support Forum Service
Share market education and training updates for new investments.
Good offline prescription
Normally document to open an account:
Passport size photo
Bank Khata Passbook / Check Book
Aadhaar card/voter income
Bank Statement or Salary Slip (Income Proof to Invest in Commodity)
Information about the opening account in ICICI Direct:
You can open a Paperless Account in ICICI Securities. You can open your account in ICICI Direct in 3 ways.
Upstox Demat Account
Upstox has made its place in the market while giving the best products in the last few years, this is why Zerodha has been placed on another number.
Let’s see what it’s like this –
Upstox allows trading at a Low Cost.
Here is a turnover of more than 5000 crores every day.
You can easily open the account easily within 1 to 2 days.
Talking about technical, upstox is the best, which gives a good experience to a user.
Just 30 seconds have been kept in the Customer Support.
So that all the problems of the customer can be resolved immediately.
5paisa Demat Account
5Paisa is also a good option to open a Demat Account.
It is different from all because the very easy and low cost is the Demat account.
In the five money, you get the first 5 transactions free.
And after this
Every transaction seems to be 10 rupees per transaction, no matter how much your transaction is.
There is no cost of account maintenance in the first year it is absolutely free.
You can also invest in Mutual Fund from the same account and can also buy insurance.
As well as 2 years of Account Maintenance Fees 400 / – Rs.
Demat Account in it can be started with only fees of 650 / – rupees.
There are two types of terminals that are facilitators for different customers.
Brokerage & margin
If you do any kind of transaction in 5paisa then you can trade with ₹ 10 per transaction fee.
While in the margin you get 5 times margins in EQUITY INTRADAY 15 times and Equity Delivery. In all Trade, you get a margin of 2 times.
If it is seen then it is a Demat account giving quite good services and it is charged charging very little transaction than any other Demat Account.
But its Customer Support and Dashboard is not so user friendly
Sharekhan Demat Account
Sharekhan was founded in February 2000 and its headquarter is located in Mumbai.
Today, more than 2600 branches are present in 575 cities in India, and with more than 4800 employees it handles more than 12 million customers.
Sharekhan has two types of accounts –
1 Classic Account – This is an online trading account that is very useful for general investors and derivatives. And the second is
2 Trade Tiger Account – Mainly for those traders who actively do trading daily.
Sharekhan account Charges
0 bucks to open Trading Account |
Demat Account Opening Charge 0 RS and
Annual account maintenance expenses Rs 750 annually.