what is demat account - an overview

With the standardization of share trading transactions, establishment of NSE, and use of internet and digital technology, online trading was introduced. This gave birth to Dematerialization of shares and then to Demat account.

What is 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.

What is Dematerialization?

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.

open demat account and start trading in one hour

flat 20% off on online trading brokerage

benefits of opening a Demat Account with Angel Broking

  • Invest easy & earn better
  • Gain access to the award-winning Angel Broking App
  • Get a better chance of earning higher returns with ARQ
  • Fastest account opening process - Start trading in 1 hour
  • Highly secure & speedy financial transactions

Angel Broking is one of the most renowned stockbroking 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.

Aims and Objectives of a Demat Account

Reduce Paperwork (Significantly)

In a Demat account, all your investments are held electronically. This eliminates the requirement for physical securities and associated documentation. This reduces paperwork and transaction time, making the entire procedure very convenient and less tiresome.

Cut down risks

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.

Lower costs

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.

Allow Instant Transactions

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 to how much longer physical deliveries would take (often weeks). But, with Demat accounts, such delays have been completely eliminated.

How opening a Demat account with Angel Broking
will boost your investments?

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 stockbroking houses. ARQ - A revolutionary auto-investment engine, powered by machine learning and deep industry insight, helps you earn better returns from your investments.

Advantages unique to ARQ - by angel broking
index beating

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, which is unique to your risk preferences and helps you achieve your financial goals faster.

Recommendations Based
on Future Potential

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.

Start investing
with any amount

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.

Portfolio Re-balancing

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.

ARQ Outperforms
Benchmarks Consistently

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.

Angel Broking App - The Best
match for your Demat Account

Your All-in-one Mobile Stock Market
An app so comprehensive that you won't 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.

Open My Account

Demat Account Glossary

Bank account, trading account, and Demat account are the three essential necessities while dealing with investments. When you purchase a company’s shares, your ownership is marked with a certificate. This certificate is now available in electronic format and is known as demat credit.

open demat account and start trading in one hour

flat 20% off on online trading brokerage