Today, the tendency of trading in the stock market has increased a lot in all types of income groups. With a minimum amount, you can start trading and the stockbrokers will help you there. The full-service stock brokers are there to provide proper guidance and assistance to the traders. If you are dealing with lots of money, they are the best brokers for you. On the other hand, discount brokers are the best for the newbies who want to deal with the minimum amount of money. They may not get the advice like the full-service brokers, but, there are websites where you can find lots of trading information.
Now, without a demat account, it is quite impossible to carry on share market trading nowadays. In India, the demat account was first introduced in the year 1996 and from that time, it has been used to keep records of your shares and securities electronically. Thus, investing, monitoring and holding and trading have become faster and easier with demat accounts. What are the benefits of best demat account in India? Read on to know more-
- The Risk Factor Is Lower
This is one of the most important benefits of using the demat account in India while trading. Storing physical securities can be damaged by fire, thefts or loss. Once you have a demat account, you can be free from such stress. Demat account helps the account holders to keep their documents electronically safe.
- Dealing with Odd Lots Is Possible
Earlier, people used to have physical certificates which enable them to buy and sell shares only in the specified quantities. Then, it was not possible dealing with odd lots or single security. Today, there is no such problems because of demat accounts. Now, it is easy to deal with odd lots with the demat account.
- Holding an Account Easy
Maintaining physical certificates are quite a strenuous job. You have to make files and be attentive and responsible enough for holding this properly. Once you have a demat account, it will be very easy to hold an account and track all the records quite well so that you can get all your documents saved properly and you can recover them any time.
- No Stamp Duty
You don’t need to pay anything to open a demat account. It is cheap and convenient. You don’t need to pay any stamp duty on transfer of securities. Besides that, no TDS deduction is caused for demat securities. Besides that, there is no handling charge and no other expenses are associated with demat accounts.
These are certain benefits or reasons why you should have a demat account. Trading can be easier now and you don’t need to be stressed out with all those physical documents. Once you have a demat account, you can always get an opportunity to invest in different types of assets, like commodity future or gold ETF, etc. Presently, for financial planning, you must have a demat account. Once you are connected with the demat account, you can get regular information and statement on your phone and email account.