Trading in the stock market is the most typical thing to do. In literal means, it is only buying and selling of securities. But, you have to do so with prevailing market trends. Stock trading is not at all easy and everyone needs guidance in initial stage. In order to ease things up, the concept of demat account has been introduced.

Demat accounts are available to you in electronic or digital forms of your stock market securities. All the shares or securities that have been brought or sold can be done only with your Demat account or in other words “Trading Account”. Unlike the earlier forms of trading in stock markets Demat accounts comparatively brought much security and easy trading platform.

As a matter of fact, the ownership and transfer of stocks and securities takes place by means of electronic book entries. Here, demat account becomes important and it also offers numerous of benefits, which are as follows:

• Lesser paper work has to be done

• Easy and convenient process of investing in securities without hassle

• Lesser time consuming

• Immediate transfer of stocks and securities

• No risks like theft of stocks, mutilation of certificates and loss of certificates

• No stamp duty for transfer of shares in electronic form, unlike the physical segment

Apart from this, Demat account works just like any other saving account. You will be getting the periodic statements with the details of all the transactions electronically. You can also easily keep a tab on the prevailing trends of the stock market. By holding a demat account, need of brokerage charges is also eliminated.

By having a demat account, you will always an opportunity to invest in various asset classes including gold ETFs and commodity futures as well. Many investors are unable to participate in the markets because they don't have one. Opening a demat account is the very first step to start trading in stocks. Nowadays, it has become mandatory.