As someone looking forward to investing in the share market, you must open a Demat account (Dematerialized account) to simplify the management of shares and holdings associated with it. But, is simplified management the only advantage relating to opening a Demat account? No. Zeroshare, the leading platform that connects you with Zerodha, the best discount broker in India, brings you a few more reasons to open a Demat account.
Features of a Demat Account
Before we proceed to look at the benefits of a Demat account opening, let us look at its features.
- Easier Dematerialization of Securities
As an investor, if you hold certificates in physical form, you only have to issue instructions to the depository participant (DP) to convert them into an electronic form, vice versa as and when needed.
- Loan Against Securities
A Demat account allows you to borrow loans against the securities you hold in your Demat account.
- Blocking the Demat Account
A Demat account further allows you to freeze a particular type of quantity of security in a Demat account for a specific duration. It will block the transfer of funds of credit or debit card into the concerned Demat account.
- 24/7 Access to Investments
A Demat account enables you to easily and instantly access your statements and investment with net banking from anywhere and anytime, even through your smartphone.
5 Benefits of a Demat Account
Demat accounts offer investment, holding, monitoring, and trading convenience. They expedite these processes and make them much more cost-effective than managing them through regular accounts. Here are five benefits that make opening a Demat account a must for you if you are a share trader.
- Convenience of Holding
Investing in shares and stocks involves managing a plethora of physical certificates. Handling so many physical certificates and monitoring their performance may prove a herculean task. Having a Demat account simplifies holding and tracking all the investments with the help of a single account.
- Reduced Costs Associated with Physical Certificates
Physical certificates entail a range of extraneous costs such as handling charges, stamp duty, and other expenses. Operating your share trading accounts helps you eliminate these costs and thus prove a cost-effective alternative as compared to the routine accounts.
- Trading Convenience
A Demat account allows you to do every share market-related activity digitally. It helps you save both time and money. In other words, you can sell, buy, or transfer funds and securities in a few seconds!
- Safety and Security
Physical shareholding and certificates may prove a risky asset to preserve, as there are chances that they may get lost, or stolen, or damaged. However, a Demat account, especially with two-factor authentication (2FA), proves a safer alternative. It eliminates the risks relating to holding physical certificates and enables you to secure your certificates virtually.
- Corporate Benefits
With a Demat account, you do not have to worry about getting corporate gains such as stock split, bonus issues, right shares, etc., updated in your account. These things are automatically updated with a Demat account. So, you get interest, dividends, or refunds in your Demat account without any delays.
Open a Demat Account in Zerodha, the Best Discount Broker in India through Zeroshare
Opening a Demat account in Zerodha through Zeroshare is easy and quick. Zerodha provides secure Demat account at the lowest brokerage in India (INR 20 per trade). You get both equity and commodity services at only 300 INR. Besides, the trading dashboard is easy and user-friendly, along with an efficient customer support. To enjoy the lowest brokerage in India through the best discount broker in India, visit https://zeroshare.in/.