With the change of time and technology, the stock market also has upgraded and improved many of its processes. One of them is the Demat Account. It is an account where the shares and other securities of the investors can be kept in a virtual form, which were previously stored in paper form. Therefore every investor has to get a demat account opened first if he wants to trade in the stock market as he can park his securities in this account. Those who want to go for intraday trading also needs to go for a trading account with any of the broker or broking company that has license from the concerned exchange. To deal with any so called service provider who is not affiliated with the exchange is illegal in the stock market as per the SEBI guideline.
The trading and trading account:
For any trader who just wants to have trading in this market must have a Demat as well as a trading account. To get the best Demat account one can check the scheme offered by different service providers as many times the service providers also waive account opening as well as maintenance charges. In such situation the client can have benefits as he does not need to pay the amount. One can get an account opened with CDSL or NSDL which are two authorities to open the demat account in India.
How to get the account opened?
To get the account opened one needs to contact any of the service provider who is either a license holder from SEBI or a franchisee of such license holder. One can go for an offline account or an online account. If one goes for an online account he needs to have a smartphone or a computer with internet connection. Here the client is provided with password for the system where he can log in and place the order. The screen on this software is same as that of the software from the exchange and functions are also similar. Here one can easily place the order and set the limits for purchase or sale of shares. One can also set limits for stop loss or profit booking. In short it can be said that in the online account the client needs to handle his account on his own.
In the offline account the situation is different. Here the client has support of bolt operator who keeps an eye on the market and as per the movement of the share prices he keeps the client updated. In case of hitting of any limit or order, he immediately updates the client. When it comes to settling the accounts at the end of the cycle also he can update the client and inform him about the position of his accounts.
There are various terms and conditions with every account. The client needs to know the terms for credit, bill settlement, withdraw of the amount and billing as well as trading conditions of various scrips.