What Is a Demat Account? What Is The Use Of It?

 A demat account holds all your securities in digital format. It prevents misuse, theft, and damage of securities and also facilitates seamless buying and selling of shares. Moreover, it helps you to transfer the shares from one demat account to another smoothly. Once you open a demat account online, you can log in with your user id and password and start investing or trading. You may also use a demat account for rematerializing or dematerializing shares. 

For online trading account opening, you need some documents that validate your address, identity, and income. However, as the trading account opening process is integrated with the demat account process by default these days, you don’t have to submit an application form or documents for it separately. Also, you may invest in derivatives, ETFs, commodities, currency, and other securities through your demat account. However, as the brokerage charged by different brokerage firms might vary, it is recommended that you compare them before completing the account opening formalities. Also, if you need any assistance regarding buying, transferring, or selling the shares, you can seek help from the broker. In case you have registered with a brokerage firm, you can contact their customer support centre to get assistance for different transactions.