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How to Open Demat Account Online with Angel One

What is a Demat Account?

Initially, stocks and shares used to be exchanged via physical receipts called certificates. However, this resulted in lengthy paperwork and took up a lot of time. To counter this and to take advantage of an electronic trading platform which was gaining traction in West and the Asian Markets, the process of dematerialisation (demat) of shares was initiated in 1996. Physical share certificates were converted into electronic form securities of equivalent number and price and were credited to the investor’s demat account. Thus, the advent of trading commenced this way.

In a more simplistic approach, demat accounts allow the investor to buy and sell as well as transact not only shares and stocks but other products conveniently without the need of any sort of paperwork.

The Angel Demat Account Advantages

Present in the industry since 1987

Technology enabled DEMAT & Trading Account

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PRODUCTS TO TRADE USING ANGEL ONE DEMAT ACCOUNT

 

EQUITY

Investors commonly use a Demat account to receive delivery of company equities. Company equities are common shares issued to general investors in the process to raise capital from the market.

MUTUAL FUNDS

Mutual funds are another investment instrument that invests in the market through a pooled fund. The fund manager usually collects funds from several investors and invest in a shared goal – track market and trace winning stocks to buy and sell to retain the fund’s profitability.

FUTURES AND OPTIONS

Investors can participate in futures and options trading and get deliveries on their Demat. Futures are great tools to hedge against rising market volatility and limit risk exposure. On the other hand, options give more flexibility to investors with a no-obligation deal.

CURRENCY

Investors can receive delivery of currency contracts in the Demat account. Currencies as an asset-class help diversify a portfolio. In terms of volume, the currency is the largest market where investors can exchange Forex at a future date, at a specific rate.

COMMODITY

Commodity trading allows investors to take a speculative position and hedge against changing commodity price. Using Angel One Demat, investors can invest in commodity exchanges like MCX, NCDEX, NMCE, and ACE.

IPO

IPOs are excellent to invest in quality stocks at a low price. Find and invest in the best IPO offers using Angel One Demat account.

Easy to Hold

Since the securities are held in electronic form there is no storage risk involved. The DP is responsible for maintaining and safeguarding the investor’s account. An account is one of the easiest and securest forms of holding a securities account. The account also allows the investor to nominate their kin. Automatic transfer of the securities is carried out to the specified nominee.

Automatic Updates

In spite of the account being a common account for all the securities. The investor does not have to provide their details every time a transaction is carried out through the DP. The account linked to the investor with their Unique Id represents the investor and has all the particulars listed out. Thus, every transaction is automatically updated with the specifics.

Common Depository

Opening an account does not only aid in trading of shares. It also operates for debt instruments like bonds, NCDs, government securities, mutual funds, etc. An investor can hold all the investments in a single account.

The solution to Odd – Lot of shares

With the investor being able to open an account, the problem for investors to transact a single or an odd number of securities has been resolved. Historically, shares were sold in the market only in lots. However, today the investor can purchase or sell any number of shares without any conditions.

Delivery of Risks

One of the greatest benefits of a demat account is the electronic trading process. Initially, there was a high risk for fake shares, theft and wrong deliveries of the securities. The electronic system today will directly credit the securities to the investor’s account automatically, regardless of the quantity and amount of shares.

Cost Reduction

Presently, a demat account does not require stamp duty for securities. This has resulted in a substantial cost reduction for the investor. Previously the stamp duty was 0.5 percent for each share. However, that is completely eliminated through an account.