Financial Markets

How is a Demat Account Useful for Stock Market Traders?

If you have a Demat account, you will benefit in various ways. A Dematerialized account helps you easily monitor Shares and other Securities from anywhere in the world. You won’t have to hold  Physical shares if you have a Dematerialized account. 

Here are some of the most valuable benefits you can get with a Demat account.

  • If you purchase a stock, you won’t have to hold that physically if you open a Dematerialized account. 
  • With a Dematerialized account, you can protect all your shares and other Securities from damages, loss, and theft as it keeps them in electronic form. It will ensure the safety of your shares electronically.
  • A Dematerialized account can convert your physical share certificates into Dematerialized form. 
  • Other than this, your account is safe from fraud and impersonation. There is no way one can impersonate you in case of exchanges.
  • A Dematerialized account will help you to settle your trades faster. Just a click on a button, and you will be able to trade online. It is easy to transfer the ownership of your Dematerialized account from one Stockbroker to another.
  • It speedily completes the payment procedure. 
  • A Demat account maintains your  Securities properly. 
  • You can apply for  Bank loans through those securities as collateral. They make online trading more approachable.
  • Physical securities involve additional costs like handling expenses and stamp duty. But if you open a  Demat account with Kotak Securities, all these extra charges are eliminated. Moreover, you will get the information about the brokerage charges in advance, and you will have to pay that much amount only.
  • It can deal with your countless documents quickly. 
  • It helps you to manage your investments. 
  • You can track the performance of your Securities.
  • As per the rules and regulations of the Central Board of Direct taxes, you don’t have to pay any tax in Dematerialized accounts as they are free from the tax deductions. You even won’t have to pay any TDS on the Interest amount you will receive on your Bonds and other securities. Just make sure your  Securities are listed on the National Stock Exchange and Bombay Stock Exchange.

Kotak Securities allows you to open a Demat account for free. Opening a Dematerialized account with Kotak Securities will help you link it with your  Trading account and  Bank account. Kotak Securities is among India’s leading stock brokerage firms, offering financial products and services for 20+ years now. The award-winning analysts will help you make better decisions in  Stock trading, Mutual fund investments, etc. Kotak Securities has high-tech trading platforms that will help you complete all your trades and investments quickly. 

At Kotak Securities,  you will benefit from a brokerage plan called Trade Free Plan. It is available for F&O across different segments such as Equity, Commodity, and Currency. For the best decisions, you can avail of Kotak TradeSmart to spot bullish or bearish trends. It also helps you understand the pattern of events and fallout in the Stock market. If you want to invest in theme-based stocks, then “Smallcase” will be an excellent option for you.

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