What is a Full Service Demat Account (FSDA)?

Before the introduction of online trading, traders used to open an account with a brokerage where all their trades were made through the broker. With a communication delay and a slow transfer process of shares, there were more chances of getting heavy losses in trade. As a trader, you want to be sure that your trading is fast and reliable. To achieve this and gain more control over the stock market, you now have a Demat account or a full-service Demat account (FSDA) account. This account assures investors of the right trades at the right time and gives complete authority to the owner of the Demat account.

Now, you don’t have to move anywhere or visit a broker’s office. With a stockbroker like Share India, you can open a free Demat account and explore the tech-driven trading software and mobile app. A full-service Demat account is quite handy for traders. Let us understand its meaning and benefits.

What is a Full-Service Demat account?

A full-service Demat account is a Demat account that offers you services that include investment advice, tips, and financial portfolio management. Generally, an intermediate trader can use this Demat account. Furthermore, the annual maintenance charges (AMC) for this Demat account are around ₹200–₹300.

A Demat account enables users to digitise their investments and trade in the Indian stock market. Regularities such as Securities and Exchange Board of India (SEBI) make it obligatory to trade shares in dematerialised form. In addition to this point, a Demat account reduces the pain of storing physical shares and avoids shares getting stolen or misplaced for any reason.

A Demat account was introduced in the year 1996 by the Nationa Stock Exchange (NSE). Previously, the account opening process was manual and time-consuming, unlike now, when you can open a Demat account in just ten minutes from the Share India platform.

You can learn all about AMC charges and its types here.

Advantages of Having a Demat Account

Future Planning

Investors who want to invest in their future goals can grab any opportunity in the public market. The risk appetite of a trader allows traders to set the safest paths toward their goals.

Different Trading Opportunities

By continuously expanding your market knowledge, you can adapt to changing market conditions and identify lucrative opportunities that others may miss.

Financial portfolio

If you open a Demat account, you can buy and sell equity and maintain and track the profit and loss of your investment. A trader who wants advice from a full-time broker service can easily choose one of the experienced stockbrokers in India, Share India. Firms like this offer a number of trading options and the excellent feature of trading in a hassle-free environment.

Conclusion

When you decide to trade in the Indian stock market, you must first have a Demat and trading account. It’s good to start trading at any stage of your life. You can open a Demat account with a depository participant registered with SEBI if you want to invest in a diversified way. You can take the help of a financial advisor who can help you pick up investments that will be suitable for your trading. Furthermore, you can download your Demat account statement from your broker’s app or website.

Frequently Asked Questions (FAQs)