9 Facts: What is Demat Account What is the use of it

What is a Demat Account? And what is its use?

What is Demat Account What is The Use Of It, Nowadays many people in India want to invest in the share market. To invest in the stock market, first of all you need a Demat & Trading Account. Just like you need a bank account to deposit money in the bank, similarly you need a Demat & Trading Account to buy or sell any share in the share market. If you are opening a Demat & Trading Account for the first time then you should read this article completely. In this article you have been told step by step how you can open your account. And if you want to learn the stock market well then click on this link

What is a Demat Account? And where to open it

Demat Account is called whenever you buy any share and keep it in your portfolio, it means that you have bought that share and kept it in your Demat Account. Now you can keep that share in your portfolio for as many days as you want. And when you need to sell that share, then you can sell that share.

In India, only 2 companies provide the service of opening Demat Account. (1) CDSL (2) NSDL. You can open your Demat Account in any of these companies. When Demat Account and Trading Account are told separately, then most of the people get confused as to how to open a Demat Account and how to open a Trading Account. So you do not need to be confused at all in this. When you open your Trading Account, your Demat Account gets opened with it.

What is Demat and Trading Account | Demat Account Kaise Khole | Best Demat Account In India

What is Trading Account – What is Trading Account?

Trading Account is called when you buy or sell shares of a company, then the purchase and sale of shares is done but all the transactions are done through Trading Account. You cannot store your shares in the Trading Account, Trading Account is only used for buying and selling shares.

So in such a situation another question arises in the minds of people that if our Broker App sinks, will all our money be lost, then the answer to this question is no, because the shares that you have purchased are in your Demat Account and not in your Trading Account and Demat Account is with CDSL and NSDL, so in such a case your Trading Account will be closed but your money will be safe, whenever you open your Trading Account with any other Broker, then link your Demat Account to it, in this way your Demat Account will become active again.

Demat Account Opening Process.

The entire process of opening a Demat Account is online. First of all, you have to go to any discount broker who provides you the facility of opening a Demat Account. There are many broker apps in India which provide you the facility of opening a Demat Account like Angel One, Groww, you can open your Demat & Trading Account in any of these. But before opening a Demat & Trading Account, you should keep some things in mind which are mentioned below.

1. Demat Account Safety
2. Account Opening Charge
3. AMC (Annual Maintenance Charge)
4. Brokerage Charge
5. Document

Trustworthy Broker

There are many such broker apps in India which provide you full service and their account opening fees are very high. So in such a situation you should open your Demat account in Discount Broker. Their account opening fees are very low, when you go to open your account, first of all you have to see the number of account holders in that broker app, how many people have opened their Demat account in it till now. From this you will know how much people trust it and whether my Demat account is safe or not. Because there are many such broker apps in India which charge very high brokerage and do fraud with people. If any agent recommends a broker to you, then you should stay away from him. Because the agent recommends a broker to you only when he is getting a high commission. In such a situation, you may suffer a big loss later.

Top 3 Discount Broker Apps of India

• Groww
• Angel One
• Zerodha

Account Opening Charge

When you open your Demat Account, there is a Demat Account Opening Fees in it. Discount Broker Apps do not charge you any fees, but Full Service Broker Apps charge you Account Opening Fees. Angel One, Groww, these are such Broker Apps that do not charge you any Account Opening Fees

AMC = Annual Maintenance Charge

Annual Maintenance Charge is the charge given when you open your Demat Account and buy and sell shares in it or store your shares in it, then the Broker charges you some amount every Quarter or one Year, this is called Annual Maintenance Charge.

Angel One = ₹60 + GST Per Quarte

Zerodha = ₹88.50 + GST Per Quarter

Groww = No Amc Charge

Brokerage Charge

All brokerage firms charge brokerage fees from investors. So in such a situation, you should compare all the broker apps and see which broker app charges the lowest brokerage fees. All broker apps charge less for delivery and charge more for intraday trading. Among these, Groww App charges the highest brokerage. Angel One and Zerodha both charge almost the same brokerage fees.

Broker App	Account Opening Fee	AMC = (Annual Maintenance Charge	Brokerage Charge
			Equity	Intraday
Groww	₹0	₹0	0.1%	0.1%
Angel One	₹0	₹240	₹0	0.03%
Zerodha	₹0	₹300	₹0	0.03%

Important Document

While opening a Demat Account, you also need some documents.

1. Aadhaar Card
2. Passport Size Photo
3. Pen Card
4. Signature Photo
5. Address
6. Bank Account

When you open your Demat & Trading Account, it starts working after about 1 week. Meaning, after 1 week you can buy and sell shares in it.

Thank you for reading this blog post.