The advantage of Integrated Demat Account in stock trade

Stock Trading allows you to invest in equities, mutual funds, IPOs, life insurance, general insurance, loans, share trading, commodities trading, portfolio management and financial planning. Inorder to kickstart into this crazy world of stocks you need to approach stock broker or authorized dealer in the market for demat account opening. According to SEBI, with the new norms and regulation “Demat account” is mandatory without which you’ll be unable to trade in the market. It allows you to hold the shares that you’ve purchased from the stock market. You can dematerialize and transact using the Demat account only.

Various financial institutions offer flexible options for demat account opening along with trading accounts either independently or at the same time. This is called a two-in-one account. While some offer the three-in-one account option – demat, trading as well as a bank account. This means, you don’t have to open three separate accounts, instead you can trade on a single application form. The advantage is that you don’t have to manually keep transferring money to your trading account from your bank account. The seamless operation capability is what makes it stand apart from regular demat account. It becomes easy for you to carry out all the transactions with a single account. You can avoid opening multiple accounts with different dealers and keep a track of each activity individually. In addition to the operation ease, the 3-in-1 demat account gives a broad range of investment options.

You can use the account to buy/sell shares without opening an additional account. When you purchase the shares, the money for the purchase debit automatically from the savings account and acquired shares credit automatically to the Demat account. The reverse process also remains the same, where you can sell the shares using the Demat account and receive the money for the sold shares directly into the savings account. You see the whole process is integrated and evenly balanced for your smooth and hassle-free execution of trade. Although the trading cost is slightly higher for this 3-in-1 demat account opening, but running all the three accounts impeccably gives unique benefits. The single window integrated solution makes it easy for you to have a better transaction ability and money management.

With integrated solution you have lesser risks of undeliberate mistakes, less risks of transfers, hassles and prove really beneficial for a long term plan. The 3-in-1 account, with its enormous advantages, proves an eye-catching element for beginners. If you are a beginner and have no experience in handling the several accounts related to the equity, IPOs, funds, stocks and shares, choosing the 3 in1 account from a well known institution is beneficial. The account also gives you the ability to invest in equities, IPOs, online mutual funds, derivative trading, insurance, NPS, tax services and other financial services.

Some of the well authorized banking brokers in India who provide state-of-the-art facilities are Reliance securities, ICICI Bank, HDFC Bank, Standard Chartered, IDBI Bank Ltd., HSBC Invest Direct, Kotak Securities, SBI and Axis Bank.

This 3 dimensional version of trading is surely an advantageous tool for beginners. However, it is essential to choose the leading provider in the market to get the optimum use of this service. The evaluation for the selection comprises of experience, service, brokerage charges and fees.

Tags : demat account, demat account opening, online trading account, share trading account

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