Just imagine a situation where all your shares were traded in physical form. You heard it right, it is in the form of a paper. So each time you had to buy or sell stocks you have to be dealing with tonnes and tonnes of paperwork.
Just imagine a situation where all your shares were traded in physical form. You heard it right, it is in the form of a paper. So each time you had to buy or sell stocks you have to be dealing with tonnes and tonnes of paperwork. Thanks to technology it has come to our rescue. You can buy or sell shares with the Best Demat Account in India via an electronic form. Basically, it is a bank account where you can go on to buy or sell shares. Rather than a physical exchange, there is an electronic transfer of shares. You can watch the shares and then decide whether it is going to be profitable for you or not.
Not only a Demat account offers you an opportunity to buy or sell shares you can secure your savings. It is possible to trade in bonds, equities along with ETFs. To trade shares seems to be a security act where you can go on to invest in shares where your money multiplies over a period of time. The moment you are involved with physical securities it means additional cost in the form of stamp duty or handling expenses.Basically, it is a bank account where you can go on to buy or sell shares. Rather than a physical exchange, there is an electronic transfer of shares. You can watch the shares and then decide whether it is going to be profitable for you or not. The moment your assets are in decentralized form you are provided with a reasonable level of security as the forgery is restricted to a bare minimum. No form of physical documents there is a chance of damage or decay
There are various benefits of opening a Demat account
Reduction of risks
Once you are dealing with physical shares you are at a high risk
Loan facility
By securities maintained in your Demat account you gain access to a variety of bank loans. You can go on to pledge these securities as collateral with your bank to obtain loans.
Loss
If all the documents are in paper form the chances of loss increase. But to store the shares in a Demat account is rated to be a safe and secure option.
Forgery
A situation where the documents could be prone to forgery might provide you sleepless nights. Once you open a Demat account you are provided with a guarantee as it is 100 % safe.
Reduced costs
The moment you rate the benefit of service it is more in terms of reduction of cost. The moment you are involved with physical securities it means additional cost in the form of stamp duty or handling expenses. It is very difficult to outline the charges beforehand. You can go on trim down all these costs if you make a switch over to Demat accounts. You just have to be paying the brokerage charge that you would be informed well in advance.
Reduction of time
The benefits of buying or selling shares via a Demat account means a reduced team. Yes if physical securities were involved it would have gone on to take a lot of time. You just have to be paying the brokerage charge that you would be informed well in advance. The transactions that were made with the help of a Demat account was seamless and did not cost much.You can go on trim down all these costs if you make a switch over to Demat accounts. You just have to be paying the brokerage charge that you would be informed well in advance. The main reason for it is that the securities were being held in a decentralized form.
2939