If you open a demat account, you will have to pay annual maintenance charges.Charges will have to be paid even if a share is converted from physical form to digital form. If you transfer money from demat account to another demat account, you will have to pay charges also.
New Delhi. If you invest in stock market, mutual funds, bonds or securities, then you must have also opened a demat account. Some people turn to the stock market to invest while some people have to do trading. You have to understand that investing and trading are two different things. Different types of accounts are required for both these tasks. If you have also decided to go towards market or mutual fund, then first understand which account will be suitable for you.
Most people think that all types of trading can be done through Demat account only, but it is not so. The work of both the accounts is also different. If you open a demat account, you will have to pay annual maintenance charges. Apart from this, if you are converting a share from physical form to digital form, you will also have to pay a charge. Apart from this, if you transfer from one demat account to another demat account then you will also have to pay share transfer charge for this.
Read this also – You will not be able to apply lime even for one and a half inches, just check these documents before taking possession, the builder will also accept the Guru.
What is the work of demat account?
If you have opened only a demat account then you can use it only for investing. Whether you want to invest in the stock market, mutual fund securities or funds, then it is necessary to have a demat account. Investment and trading are two different things, so Demat account can be used only for investment. Through this you can invest money for long term.
Use of trading account
Now let’s talk about trading account. If you want to buy and trade in stocks, you will have to open a trading account. You can do intraday trading through trading account. This work cannot be done through your demat account. For this you need a trading account. This account gives you the facility to buy and sell shares daily.
How to trade without demat account
Demat account is not required for investments or trades in which shares are not transferred. For example, to trade in futures and options, you only need a trading account. For this it is not necessary to open a demat account. This is because shares are not transferred for trading in futures and options.
,
Tags: business news in hindi, investment tips, stock market, stock market
FIRST PUBLISHED: April 30, 2024, 19:24 IST