How I can Invest My Money In Share Market from Home via Demat Account, and how to choose the best Demat account to invest the money
It was too hard to enter the Share market because you always think that your money going to lost if you choose the wrong share to invest your money. Because you’re a beginner in the share trading market and you don’t know the proper way to invest your money in growing shares to grow your income on daily basis or for a long time period.
So, In this article, I tell you how you can invest your money in the Share Market with the best Demat account to grow your money in less time period.
First of all, I give my complete introduction about me, I am Mrtiunjay Jadon founder of this blog KeepTheTech.com and this my first article about Share Marketing, Although I was trading for more than 3 years and earn lot’s of money from home with any risk.
I started in the share market at 1 LK and currently, I am rocking in the share market, I always recommend daily trading to earn money without risking for money, but you can also invest your money for a long time in single stock to double or triple your money in a long time.
According to my experience, I also trade in long-term stocks to grow my earnings because long-term stocks about $90 safe if you select well to share which goes strong further.
If you don’t know the basics steps of share trading then it was too hard for you to grow your money and you end up with nothing.
What is a Demat Account?
Basically, you need a Trading Account, a Demat Account and a Bank Account to start trading in a share market. You also have knowledge about different institutions along with entities such as depositors, stockbroker, depository participants, sub-brokers, NSE, BSE, NSDL, CDSL and some other who play an important role in Share Market.
First of all, I am going to tell you What is Demat Account and how you can choose the best Demat account to invest money in the share market.
Demat Account or Dematerialization :
In simple words, Demat accounts allow a person to hold their share in dematerializing from electronic form. Technology Dematerialization is the process of physical share certificates of a person are converted into an equivalent number of securities in electronic form.
All of us have bank accounts where we keep our money. In the same way, an investor needs a kind of account where the investor keeps its shares in-demand form. This type of account is called Demat Accounts.
Note: To own a Demat Account you don’t need to own a share in physical certificates
In simple words, Bank offers you to maintain your bank account in the same way depositors offer the service to maintain a demand account. If you thinking about how to offer demand accounts the answer to this question is a bank and brokerage firm offers Demat accounts with different types of brokerages.
What is Brokerage?
Brokerage is the firm or financial institution that facilitates the buying and selling of stocks between a buyer and a seller. In simple words, the brokerage is served a clientele to the investors who trade public stocks in the share market.
Yes, it’s important to keep an eye on brokerage taken by the broker which offers you a Demat account. Because brokerage reflected your earning in the share market. Read more about brokerage on this official page
Open Demat Account in India ?
In India, there are two depositors from which you can open your Demat account these depositors are NSDL and CDSL. Currently, NSDL has 10405425 demand accounts and CDSL has 64,25,470.
In simple words, these are huge organizations in India and they issued more than 1.6 million Demat accounts. The common investors do not direct you can’t directly contact depositors. The depositors have their own agents work under both organizations are called depository participates.
How is Depository Participates?
As I said, Depository Participates (DP) are the agents work under depositors to help common peoples to open new Demat account to trade in Share Market. To know more about Depository Participates visit this official page.
To, open a Demat account, there are some official documents required to open the Demat account.
- Proof of Identification – Voter Card, Driving license etc
- Proof of Address – Electricity Bill …etc
- PAN card copy
- Cancelled Check
If you have these five above maintains document you can apply to open a Demat account via depository participates.
I hope this article will help to understand a little about Demat Account and share market in India. For more information and to read Share Market-related articles Subscribes Us with your email address and for hourly updates follow us on Twitter and Facebook.
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Thanks for Reading. I soon post my next article about Share Markets.