If you are really interested in trading, the first important thing to do is open a demat account. If you want to participate in IPO trading, share purchasing, investing online, etc., you need a demat account. Without an account, you cannot trade shares. A Demat account is to store your shares in electronic form. It stores information about how many sales you made and how many shares you bought. It is like a bank account. You can plan all your f&o strategies for trading and use your demat account to buy or sell shares.
Why do we need a demat account?
The physical form of investment and trading in the share market is very slow and complicated. Moreover, it involved a lot of paperwork and manual work to verify it. To prevent mistakes and discrepancies and also to make online trading work, a demat account opening has been brought in. Everything is traded in electronic format, and It is perfect for tracking shares and securities that got traded.
If you want to trade in the forex market or participate in an IPO, then you need a demat account. People started giving out shares of the company to even employees as gifts. So, if you want to receive anything in share, you need to open a demat account. You should keep in mind that a demat account is to hold your shares and securities in electronic form. You need a bank account to settle the money and also to buy shares. Using a demat account, you can easily trade shares, ETFs, MF, Bonds, government securities, etc.
You can open a zero account balance demat account also. If you are a beginner, you can watch the trading stocks and then plan to invest. So, think of it as a savings account.
Transferring shares
If you own a demat account, you can easily transfer your physical shares. All you need is a Delivery instruction slip to provide the requisite details. Then, the shares will be transferred to you in electronic form in your demat account.
Loans
Do you know that you can use the shares and securities you purchased through a demat account as collateral for your loan? Yes, it is. If you want any loan, you can place the share you purchased as collateral and get the loan easily.
Easy accessibility
Demat accounts can be opened and can be accessed on mobile phones, laptops, tablets, etc. All you need is a device to access it and perform trading as much as you want. Some apps have videos that teach traders how to trade and how to withdraw money. Even real-time financial news updates will be there in the online investment trading app for the traders to make precise decisions on time.
Tools
You will get access to various tools and NSE BSE live charts to predict the share price. You can have all the tools in your mobile app itself. You can easily take advantage of it and use the prediction to perform trading and make a profit.
Conclusion
There are many mobile applications in the market that are available for you to create a demat account. Research the application you are going to use, check the reviews and ratings in the Play Store or App Store, and download it. Do the KYC process, and then go ahead with your trading. Always follow the financial news before making any forex trading decision.