Open Demat Account Free and Trade Easily

 

Introduction:

Trading shares wasn't always as simple as it is now. In the past, in order to purchase shares, investors had to fill out paper paperwork and squirm in the throng at stock exchanges. In addition, they had to wait in queue for a very long time to get their share certificates. Their troubles didn't end then; they still needed to save these share certificates and repeat the same procedure if they ever wanted to sell their shares.

In the present day, you may easily purchase and sell shares from the comfort of your home or place of business by using your open Demat account free.

If stock trading is new to you, you may not know what a Demat account is or how to utilise it for share market trading. Get Free Professional Advice Before Investing! An exhaustive approach on creating a Demat account and utilising it for share trading is provided in this article.

What is a Demat account?

Let's talk about what a Demat account is before getting into the specifics. It stands for "Dematerialized account," which is a type of account that lets you hold shares you buy from stock exchanges electronically. The Demat account was initially introduced in India in 1996, and since then, investors have favoured this method of holding their shares.

As of right now, trading shares requires having a Demat account, according to the Securities and Exchange Board of India (SEBI). The inconveniences of keeping actual share certificates are avoided when shares are held in a Demat account, which also helps to keep them safe.

Why do I need a demat account?

To comprehend the significance of demat accounts for trading, let us examine some of their key characteristics:

  • In the days before computerised trading, dealers had to deal with a mountain of paper stock certificates in order to execute trades. Since the demat account was initially established in India in 1996, this issue has been resolved.

  • Dematerialization account is referred to as demat. A trader can hold his securities in an electronic or dematerialized manner using a demat account.

  • Compared to dealing with paper certificates, holding assets in a demat account increases accessibility while maintaining security.

  • open Demat account free and bank accounts are similar in this sense. Your demat account is where your securities are kept, just like an electronic bank account does. Additionally, you can credit and debit your securities or even leave your demat account with a zero balance.

How to trade in a Demat account?

Below is the step-by-step guide to trade shares when you open Demat account free:

Step 1 – Open your Demat account

You must first create a Demat account in order to trade stocks. Two depositories in India, Central Depository Services Limited (CDSL) and National Securities Depositories Limited (NSDL), are in charge of managing Demat accounts. 

You must speak with a brokerage like Globe Capital or a Depository Participant (DP) in order to create a Demat account. The stockbroker will next make the request to create a Demat account on your behalf with one of the two depositories. You can be asked to pay a charge by certain brokers to open a Demat account.

Step 2 – Link your Demat account to your trading account

Connect your Demat account to a trading account as soon as it's opened. This might be a current or savings account. Open a trading account with a bank as soon as possible if you don't already have one. You may create a 2-in-1 account with several stockbrokers that can be used for both Demat and cum-trading.

Step 3 – Add money from your trading account to your Demat account

You then have to wait for your Demat account to be activated. Stockbrokers typically require 24 to 48 hours to initiate Demat account activation. You can fund your Demat account with funds from your trading account after it has been activated. To do this, you need to use the ID and password that your stockbroker issued you when you opened your account to connect into the trading platform.

Step 4 – Place buy and sell orders from your Demat account

Your Demat account is now prepared for trading shares. In addition to placing buy and sell orders for specific amounts of preferred stocks, you may add stocks to your watchlist. The shares will be sent to your Demat account when a buy order is performed. These shares may be sold on the same trading day as they are purchased, or on any subsequent trading day. Depending on the market price of the shares and the cash you have put to your Demat account, you can buy a maximum of shares. You can purchase a maximum of 666 shares, for instance, if you have contributed Rs. 1 lakh to your Demat account and the market price of the share you like to purchase is Rs. 150.

Conclusion

Although traders used to typically deal with physical certificates, demat accounts have made it less difficult for them to keep assets. They are essential to today's trading procedure. Trading is now easier than ever when you create a demat account and connect it to your trading account. You may start your trading journey with a number of advantages by opening a free demat account with Globe Capital. They provide a trading account and DEMAT that are powered by technology, together with technical and fundamental research advice to help you make trade decisions.

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