The concept of Demat accounts was launched in India in the year 1996. Before 1996, when digitization didn’t happen, shares and securities were issued and traded in a physical form which was definitely a hassle from many perspectives. Traders had to invest a lot of time, money and energy to ensure the safety of bonds from theft, natural calamity, damage or any other kind of loss.
Introduction of Demat allowed traders as well as investors to keep shares and securities in electronic format which made life very easy. The entire process of trading, investing and monitoring became a breeze, making the entire experience cost efficient and seamless for all. To make the most of it, several traders and brokers made their inception in the market. One such discount broker is Zerodha - one of the top 10 stock broker in India with a good repute.
Ever since it has changed the lives of millions of traders and investors. Let’s take a look at a few of the benefits of using a Demat account.
1. Lower Risks
One of the main benefits of having a Demat account is security. There is a no risk of robbery, theft or any other sort of damage as the risk is completely eliminated because of the shares and securities being in an electronic format.
2. Time Saving
The elimination of paperwork makes Demat account a perfect pick. Faster transactions allow investors to buy and sell more number of securities than ever before. If you go for Zerodha Demat account, you can also use Zerodha brokerage calculator to know all charges upfront which saves you a lot of time as you do not need to do any manual calculations.
3. Cost-Effective
Demat accounts are way more cost-effective than traditional accounts. There are no additional charges such as stamp duty charges, handling charges and other miscellaneous charges. Also, opening a Demat account with a reputed broker such as Zerodha makes your life easy because Zerodha account opening is a cake-walk. You can open a new account by following a few simple steps and start trading right away.
4. Seamless Process
When you combine your Demat account with internet banking, you can enjoy a hassle-free trading experience. Online trading is a seamless process; because when you buy shares in your trading account, your account is debited automatically and credited when you sell any
It can be safely concluded that a Demat account offers a lot of benefits and if you open one with one of the top 10 discount broker in India, you can avail many other benefits as well. For any questions related to online trading or Demat account, feel free to get in touch with us.
