5 BENEFITS OF OPENING THE BEST DEMAT ACCOUNT
Dematerialized Account, or Demat Account for short, is something all the businessmen are raving about now, and there is a very good reason for that. It is a very easy and convenient method for all the shareholders to keep track of the trades that are happening in their company and it reduces the human errors to the minimal. So, what exactly are the benefits of having a best demat account and why do you need it? That is exactly what we are going to tell you in this article.
- Easy and convenient:
It is user-friendly on a lot of considerations. The transaction of shares happens automatically, which makes the stock market transactions more hassle-free and trustworthy. The client handling for stockbrokers is also much simpler and more streamlined. Users can access the trades online using their phones or computers right from the comfort of their homes. The transactions are completed online, so the problems that come up with physical transactions can be avoided completely. Foreign investors also trust Indian exchanges and stock market ecosystem more. The ownership of trades is also instantaneous, as one does not have to go through the tedious process of sending the bought shares to the company’s registrar. One can become the owner of a trade as soon as it is credited to their demat account. Know more here: http://www.angelbroking.com/demat-account/what-is-demat-account
- Safety and security:
Demat transactions are far more secure than the physical securities, as the intangibility of the shares means no loss, theft or mishandling of the certificates. Furthermore, one need not be worried about fake securities. There is also a lot of time and effort saved, that would go into the physical transfer of securities. The problem of wrong or late deliveries is also neutralized.
- Reduced costs:
Since the transactions are now paperless, a lot of additional cost is reduced. Expenses like stamp duty and handling charges are out of the picture when you have a demat account. This helps in saving a lot of money that was earlier completely necessary in the physical process.
- Odd lots:
The odd-lot problem is where traders had to buy or sell shares in specific numbers only. This was a huge inconvenience in the physical process. However, with a demat account, this problem no longer arises. Since the trades are shared electronically, a trader has the option to deal with even a single share, if he wishes so.
A Demat account saves all the information of the shareholders and is accessible to all the parties. Hence, in case of any new or additional information, the trade does not need to fill in individual paperwork for all the participants. They can update their demat account and all the parties concerned can see the new updates. This reduction in manual intervention has increased the trading volume and also the trust of users in the overall mechanisms of the stock market.
A demat shareholder enjoys all the rights that a physical shareholder has, minus the hassle of going through all the additional paperwork. It is safer, and much more convenient. Even though it might feel better to actually have the share you bought physically in your hand, being a demat shareholder gives you the same benefits, with added security and a less cumbersome process. That is why you need to open a demat account right now because it is one step towards the stress-free life you always wanted!