With the standardization of share trading transactions, establishment of NSE and use of internet and digital technology, online trading was introduced, which first gave birth to Dematerialization of shares and then to Demat account.
Demat Account or dematerialized account provides the facility of holding shares and securities in electronic format. During online trading, shares are bought and held in a demat account, thus facilitating easy trade for the users. A Demat Account holds all the investments an individual makes in shares, government securities, exchange traded funds, bonds and mutual funds in one place.
Dematerialization is the process of converting the Physical share certificates into electronic form which is much more easy maintain and accessible from anywhere through world.
Demat Account service is provided by depositories such as NSDL and CDSL through intermediaries / Depository Participant / Stock Broker such as Angel Broking. The charges of demat account vary as per the volume held in the account, type subscribed and the terms and conditions laid by the depository and the Stock Broker.
Angel Broking is one of the most renowned stock broking houses in India. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel Broking is also registered as a Depository Participant with CDSL.
In a Demat account, all your investments are held electronically. This eliminates the requirement for physical securities and associated documentation, which reduces the paperwork and the transaction time, making the entire procedure very convenient and less tiresome.
Dealing with physical copies entails many risks. They can be subjected to physical damages, get torn, lost or misplaced. Additionally, there are other dangers like fake securities, bad deliveries or incomplete paperwork. Opening a Demat account completely eliminates all these risks.
Physical securities entail higher transaction costs as there are many extra expenses like handling charges, stamp duty, etc. Often, these costs cannot be anticipated before the transaction is complete. A Demat account, eliminates these extra costs completely, moreover, the exact transaction cost can be determined beforehand.
When securities are dealt with electronically, it ensures much faster transaction. As a result, the investor receives the credit in his Demat account much quicker. History stands witness, as to how much longer physical deliveries would take (often weeks). But with Demat accounts, such delays have been completely eliminated.
By opening a Demat account with Angel Broking, you get free access to ARQ - India's first of its kind hyper intelligent investment engine. ARQ is a unique offering from Angel Broking. Nothing even remotely similar is offered by any of the other stock broking houses. ARQ - A revolutionary auto-investment engine, powered by machine learning and deep industry insight, helps you earn better returns from your investments.
ARQ gives you the best shot at earning best possible returns. It takes emotional bias completely out of the equation and helps you make the right investments that has the best potential to offer greatest returns
ARQ uses Nobel prize winning Modern Portfolio Theory to give you personalized recommendations. Thus you get the best asset allocation advice across major asset classes like equity, gold & debt mutual funds, that is unique to your risk preferences and helps you to achieve your financial goals faster.
Powered by advanced technology, ARQ processes billions of data points and sorts through billions of combinations to create models that have superior predictive power. Hence its stocks & mutual funds recommendations have the highest future performance potential.
There is no fixed investment amount to start investing with ARQ. You can experience the power of ARQ by opening a Demat account with Angel Broking and start investing with any amount of money.
Once you start investing with ARQ, you will receive periodic auto notifications to re-balance your portfolio. Thus, ARQ always keeps you invested in the most profitable stocks and mutual funds.
Extensive back-testing and comprehensive track records have proven time and again that ARQ outperforms the benchmarks by a handsome margin. So, if you invest in recommendations given by ARQ you stand a better chance to earn higher returns.
Your All-in-one Mobile Stock Market
An app so comprehensive that you wont need anything else. Trade, learn and stay updated on the go. It gives you latest news, reports and real time updates at your finger-tips. Apart from giving access to ARQ - the revolutionary investment engine, that always keeps you a step ahead, the app also offers Portfolio Health Check to help you maintain an ace portfolio.
As opposed to bank savings accounts, demat accounts don’t have any minimum balance requirement. As per the regulations, the investor is free to have any number of securities in his demat account.
We hope, all this clarifies how useful demat accounts are. So stop thinking and open a demat account and enjoy its benefits.