The first step you have to take if you want to become an investor is to open a Demat account. You may have heard of such an account before, but do not know how to go about opening one. Nonetheless, your education starts with knowing a bit about what a Demat account is and how it can be of advantage to you, the investor.
To get a background about what a Demat account is and how it aids investors tremendously, a short history lesson is required. For starters, since the Bombay Stock Exchange first opened its doors in 1875, the share market, or the stock market, has undergone numerous changes. If you think about a ‘then and now’ story, in the old days, traders would be physically present on exchange floors and shout out buy or sell orders for trading transactions. Now, in this digital era, ‘physical presence’ and ‘paper’ is a thing of the past. Traders no longer have to be present at stock exchanges and shares and stocks, as well as other assets like bonds, debentures, etc, are not held in physical formats. Rather, they are held in digital formats in Demat accounts. In fact, brokerages let you open a free Demat account online.
When activities to do with trading and investment could not be undertaken digitally, there was a lot of time and effort wasted in exercising trading activities. Furthermore, trades took almost two weeks to be settled. With online Demat accounts, trades are settled in a matter of two days. Furthermore, there was a ton of unnecessary paperwork involved, a large degree of room for human error. This has all been eliminated now, and whatever is your investment option, a Demat account linked to a trading account online makes your life easy. These are some simple steps to open one:
Opening a Demat account with an eminent Indian brokerage like Motilal Oswal will have you on your way to investing wisely and easily. You can gain a world of knowledge with investment tips and strategies that encourage your investment goals to be achieved faster.