Trading is not done on a personal basis only by travelling to the trading site all the time. Online trading can be done using internet facilities within shortest possible time. The greatest advantage one enjoys doing trading online is that they can get it done sitting at the convenience of one’s house or doing work in office as well. The trading business can be done anytime during a day as per the convenience of the trader and also across the entire globe. Online trading also facilitate making payments easily and on time which otherwise would not have been possible.
All these facilities can be taken advantage of if there is a valid and operating online trading account. These types of accounts which help conducting trading business in shares and securities in their electronic form easily and conveniently are called Dematerialized Accounts or Demat Accounts. Online Demat Account opening is done with a brokerage firm at the time of registration or can be opened with a bank.
Important documents for proving address are required to be submitted along with 4 passport sized photographs of the account holder. The important documents are PAN card, Voter’s ID CARD, Driving License if any etc which are to be submitted for opening this account. This account is mandatory and no trading online in any form can ever be conducted without the presence of such accounts. On opening this account two types of passwords are given one is Internet password and Transaction Password. Safe and secure transaction of shares is ensured.
Trading business is the most common form of business which can be done by any normal person. This trading is done through any major stock exchange across the world. With the introduction of the electronics and internet based system all major stock exchanges are now storing the stocks of different corporate or companies registered with them in a dematerialized electronic way, so that these shares or stocks can be traded electronically without any physical presence. Demat account opening is the best way to start such trading with ease. It’s really easy to get an demat account with any multinational bank, security firms or financial institution with minimum documentation. Demat account opening can be done easily through the online method also.
Once the demat account opening is successfully done one needs to get registered with any stock broker or sub broker to start the trading business. These brokers execute the business on your behalf through the demat account which needs to be funded by the investor. You can trade on all kinds of product like shares, equities, commodities, derivatives and even currencies through this demat account. The settlements are supper fast and reliable as the transfer of stocks is done electronically once the transactions are successfully confirmed. The operations through this demat account can be done through internet, sitting at home from any corner of the world. Huge profit is ensured as the trading volume is higher while trading through the demat account and the secrecy of the trading is maintained.
For people who wants to invest in the stock market, opening a demat account is the first and also the most important step in the total investment process. Though the standard practiced for opening a demat account in India is to get in touch with a depository participant, but presently a few websites have also arrived in the market offering online demat account opening facility and many investors have already identified them as a better and convenient way of opening a demat account in India.
For opening demat account online with any of these websites investors are first required to download the application form from the site and once duly filled they need to courier the form with all required attachments to a physical address of the service provider. The documents that you need to send along with the filled application form are – a self attested photocopy of your PAN card, that of bank statement for last three months also self attested, photocopy of ID and address proof, a cancelled cheque and a cheque for initial credit into the new account.
A growing number of share market investors now prefer to open their demat accounts online for some obvious benefits. Unique and low cost brokerage plans and immediate account opening within two days are two of the major advantages that investors seem to prefer the most. Many of these websites for online demat account opening also charge zero annual account maintenance charge for the first year and also offer three different trading modes – software based, browse and mobile.