How to do Online Trading with Demat?
- 14 May 2024
- By: BlinkX Research Team
With the introduction of online trading accounts and increased access to financial markets, more Indians are entering the trading world than ever before. Earlier, investors used to go to a counter to place orders. However, with the adoption of the electronic trading system, all a trader needs is a trading account. However, trading in the stock market requires opening a Demat account to hold the securities you purchase. As a result, everyone who trades must have a Demat account. This blog explores the process on how to do online trading with Demat account.
Why Do I Need a Demat Account
To understand why Demat accounts are vital for trading, consider some of its most important features:
- Before computerised trading, traders were required to carry a large number of physical, paper certificates of shares. Now, there is no such difficulty, thanks to the introduction of the Demat account in 1996.
- Demat stands for dematerialisation account. A Demat account allows a trader to keep his assets in a dematerialised or electronic state.
- Holding stocks in a Demat account protects them while also making them more accessible than dealing with paper certificates.
- Demat accounts are very similar to bank accounts. Your securities are held in your Demat account, much like you would keep money in a bank electronically. You can also debit and credit your securities or have a zero balance in your Demat account.
Open Demat Account
Your first step to enter share market
Table of Content
- Why Do I Need a Demat Account
- Steps to Start Online Trading in India
- Charges Associated with Opening a Demat Account
- Features and Benefits of an Online Trading Account
- How do I choose stocks for trading?
Steps to Start Online Trading in India
Utilising a Demat account streamlines and enhances the entire online trading procedure, making it highly efficient and convenient. Here are the steps to begin online trading in India.
Charges Associated with Opening a Demat Account
Opening a Demat account, while integral for online trading, involves various charges that investors need to be aware of:
Features and Benefits of an Online Trading Account
There are numerous advantages and perks associated with having a trading account, which are as follows
How do I choose stocks for trading?
After understanding the process of online trading, let’s look into choosing stocks for trading. This requires careful analysis and research to maximise profits and minimise risks. Here's a concise guide on how to choose stocks for trading.
How do I Open a Demat Account?
Opening a Demat Account with any Depository Participant (DP) can be done online. Follow these steps to open a Demat Account online:
- Step 1
Pick a DP Website After doing your research, choose a trustworthy DP website. Visit the website's page to proceed. - Step 2
Select 'Open Demat Account' Once you're on your chosen DP website, click on 'Open Demat Account' and follow the instructions displayed on the screen. - Step 3
Complete the Demat Account Opening Form. Fill out the online form with accurate details, including your phone number and email address. - Step 4
Receive a One-Time OTP After providing your initial details, you'll receive a one-time OTP to proceed further. - Step 5
Submit Necessary Documents Share your PAN card and banking details, including your PAN number and transaction information. - Step 6
Complete the E-KYC Process and Obtain Your Demat Account Number Verify your KYC information online. Your provided details will be checked electronically, and once verified, you'll receive your Demat Account Number.
Conclusion
Online trading with a Demat account completely changed the way investors traded in the stock market. Earlier, they used to transfer shares using paper certificates. However, with the advent of Demat accounts, transferring shares has become quite simple. You can open a Demat account with a reliable online share trading app and add funds to get started. It offers several other advantages, as you can view live stock prices and track all your investments in one place. While Demat accounts involve certain charges, the benefits of seamless transactions, trustworthy information, and lower costs outweigh them. You can easily start trading online by understanding how the stock market works and following solid trading.
FAQs on Online Trading With Demat Account
Recent Articles
Related Articles
Press Release
- BlinkX Enhances Trading with 24/7 Customer Support Capabilities
- Unlocking Seamless Trading: Introducing “Order Slicing” For The FnO Market
- A Game-Changer for Traders: Introducing Horizontal Watchlists
- BlinkX Launches Gen AI Lab & GPT-Equivalent BlinkX Insights For Stock Broking Industry
- BlinkX opens India’s first Gen AI lab in the stock broking industry