Demat account: The key to earning money

A Demat account as we know is an account that is especially employed to store shares in electronic…

A Demat account as we know is an account that is especially employed to store shares in electronic form. With the advent of computers and the internet changes in the traditional way of storing or selling stocks of a company were bound to happen. There are certain aspects that the Demat account covers which any other account cannot. There are plenty of online trading platforms which offer to open free Demat accounts for their new customers.

Features of Demat account:

  1. Conveniently accessible: Demat accounts are really easy to access. All one needs is a working internet connection and transaction password to get through with the transaction. It also helps in keeping track of all the other trade’s amount. As any trade made just goes into the record. These details can be accessed anywhere.
  2. Dematerialization of stocks: Shares can easily be converted to physical form if the existing ones are in electronic form. Or just the exact opposite is also possible that is the conversion of physical financial securities into electronic form. The consumer just needs to ask the chosen depository participant to do that.
  3. Dividend on stocks: Demat accounts have replaced the old and highly inefficient methods with the new ones to receive all the money directly into the linked bank account. This includes dividends, interests, refunds, etc. All of this is instantly credited. Any further problems faced can be flagged instantly and resolved.
  4. Transfer of securities: Before the advent of Demat accounts transferring stocks was no joke. It involved a humongous amount of paperwork. Not to forget the moving of all of those heavy amounts of papers which actually were stocks. But now with the Demat account, in-play stocks can be transferred just by the touch of some fingers. 
  5. Cashing on stocks: With a Demat account in use, the process of liquefying stocks has become simpler than ever. Unlike the traditional method of liquidating stocks before, the Demat account allows its users to bid the present stocks in its hold on their price in the market. This way customers can sell off their shares pretty fast and encash them.
  6. Potential collateral: Shares stored in electronic form in a Demat account hold up against the bank acting as collateral. A loan can be obtained pretty fast without signing any collateral deal. The value of the stocks present in the Demat account is the real nectar that the banks as honeybees want to extract. So they offer a deal without any collateral.
  7. Developing country: Demat accounts provide special facility to the foreigners those are especially interested in investing money in Indian stock market. With its clean interface and exemplary support services, it has proved its mettle in the field of share trading. Streamlining such an amount of money from foreign countries can help the economy of our country to grow.


With so many features and advantages listing the features and what not it is quite difficult to choose a tasting platform. One prominent name among these services is 5paisa. It is one of the best in the market.


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