Benefits Of A Demat Account

The digital world has revolutionized the human experience in the virtual world. And on the same lines, the Demat Account facility has enhanced the trading experience all over the world. What are these benefits of a Demat Account that have led to this enhancement?
Just like how email services transformed the way people communicated from letters to online mailing, similarly, when the shares were converted into electronic format and eventually the whole stock market got paperless, it was a major milestone.
In fact, the benefits of Demat Account can be attributed to the above mention conversion process, also known as, Dematerialization. So, if you are thinking that is demat account safe then let’s look at these benefits of Demat Account one by one.
Benefits Of Demat Account in India

In the year 1996, SEBI introduced the Demat Account facility on NSE, and in a couple of more years, BSE too went paperless. Additionally, this directive was authorized with the passing of the Depositories Act in the Indian Parliament.
The process of Dematerialization of physical shares, which forms the heart of the benefits of the Demat account, was undertaken by the Depositories like NSDL and CDSL.
So now, let’s understand some salient features of the Demat account and how they are beneficial to traders.
1. Elimination of Risks
Before the advent of the digital era, physical shares was the only mode of trading. And to deal with physical shares makes the overall trading procedure prone to certain risks such as theft or misplacing of paper shares.
But what was even more worrisome were the instances of forgery that were difficult to stop because of the fact that physical shares were too easy to cook up.
With shares now only in Dematerialized form, held only in Demat account, these risks have been easily eliminated.
2. High Convenience
Imagine a time when you had to call a broker/mediator for every buy and sell order you wish to place. And so if someday your broker failed to pick your calls, and you miss on on an important trade, how pissed you would be.
Now come back to reality and take a sigh of relief because, with Demat Account access, you can place your buy or sell orders anytime, anywhere using mobile apps or web terminals. This also means that the dependency on middlemen has been eliminated and trading has become faster and easier.
3. Minimal Expenses
Handling costs of physical shares will easily surpass the cost of the Demat account. In addition to handling expenses, there were also other charges such as stamp duty.
And one can’t ignore that eliminating paper also adds to the cost-effectiveness. One no longer has to pay charges of storage of physical shares either.
Although, this is not to say that all the Demat Account services are free of cost. But the point remains, that Demat Account charges are pre-disclosed and are all regulated by designated authorities.
4. Ease Of Record Management
Keeping track of the shares that you are buying and selling daily becomes laborious a task if one does not have the facility of a Demat Account. A separate record book has to be kept just for this task and that too will remain prone to human error.
On the other hand, a Demat account will automatically give you a detailed report of the records, of all incoming and outgoing shares. This will also help regular traders to keep a watch on their performance and profit-loss data.
With such data easily available on a Demat account, traders and investors can form insights on their market behaviour/patterns and henceforth make needful changes in their trading practices.
Conclusion
The most essential benefits of Demat Account have been enumerated above. Using a Demat account, you can take off your mind from worries of physical shares management. And the simple fact that you can trade anywhere anytime without worrying about any middleman or human intervention.
So don’t wait anymore just open your Choice Broking Demat account today and get access to the top-notch trading platform Jiffy.