Demat accounts were first initiated in 1996. Since then, they have altered the Indian stock market landscape. Physical trading is in the past, and the hassle-free Demat account linked to a trading account facilitates quick and effortless investment processes. Wiping out paper-format shareholding altogether, now, there is no opportunity for fraudulent activities like forgery, loss, theft, etc. Electronic storage and trading of shares has brought in a system where more and more individuals partake in Demat account opening procedures.
In current times, it is easy to open a Demat account online. Moreover, it is mandatory for investors and traders of stock markets to have a Demat account. Many banks and brokerages, such as the prominent Motilal Oswal, a leading Indian broker, have introduced the offer of free Demat accounts. Brokerages offer you free Demat accounts with linked trading accounts and a host of valuable services. Firstly, before getting in the depths of pros and cons of free Demat accounts, you may want some clarity on what a free Demat account entails, and if any Demat account charges are involved at all.
Generally speaking, a free Demat account indicates that the Demat account has nil opening fees. Most DPs (depository participants who can officially open Demat accounts on an investor’s behalf) like banks and brokerages call a Demat account ‘free’ when they offer fee waivers on opening an account and also on the initial year’s maintenance charges.
The availability of good Demat account services can be an impetus for taking your investments further and farther. Needless to say, Demat account opening with a free Demat account gives you the following advantages:
Free Demat accounts should be opened with caution, just as any other accounts may be. However, if you sign up with a reliable broker like Motilal Oswal, you will benefit. Still, here are the disadvantages of a free Demat account:
With Motilal Oswal on your side, your free Demat account can be opened in the blink of an eye. An easily-navigable portal allows you to trade with the best knowledge base to help you earn profits.