Demat Account

As a beginner in stock trading, the first thing you need to do is open a demat account.

A demat account is a prerequisite to trading in the Indian stock market.

To trade in the financial market, you must have a demat account.

The digitalization of online trading has made trading seamless and affordable for the common people of India.

In the stock market, a demat account is a compulsion for trading in the equity segment.

A demat account is a necessity to trade in the stock market.

A depository is very similar to a bank.

To start with the aims and objectives of the demat account.

Before the introduction of online trading, traders used to open an account with a brokerage where all their trades were made through the broker.

Traders participate in the stock market through the share market.

It was in 1997, when Indian markets switched over to Demat accounts. Before that stocks and shares used to be exchanged via physical receipts called certificates, which involves lengthy paperwork and takes up a lot of time.

A demat account has been a boon for trading. Traditionally, trading was a tedious process, with traders having to be physically present at the stock exchange.