Demat Account For Share Trading
The loss and profit involved entirely rests on the judgment of the investor. Share brokers inform investors about market movements, share prices, etc., and at the same time suggest to them to buy shares. There are marked differences between stock brokers functioning online and those attending over the phone or in person. Online stock brokers can easily be contacted if you visit online brokerage platforms like Nirmal Bang. Such platforms, in addition to offering facilities to open a free trading account, also provide services of stock brokers, tips on share market investing, and a lot of related information. The vast stock market scenario, including the performance of BSE, NSE, share prices, stock quotes, active stocks, share market news, etc., can be viewed here at this single window destination tendering services beyond brokerage solutions.
There are three criteria for the services of stock brokers, as enlisted below. Investors can choose any of the criteria while contacting share brokers. Stock brokers execute their services as per the instructions of the investors. It is the investors who decide whether to buy a share or when to sell it; stock brokers only carry out the instructions.
1. **Execution Only**: Stock brokers provide advisory services in addition to handling the trading account. In this case, investors take the advice of share brokers and accordingly buy and sell shares; but the final decisions rest on the investors themselves.
2. **Advisory Services**: Stock brokers enjoy flexibility in dealing; in this case, the investors' investment objectives are taken into account, and then the stock brokers execute the trading process, themselves taking investment decisions on the investors' behalf.
A free demat account and a free trading account are the same – different terms with the same meaning. To be an investor in the share market, you should hold a trading account. If you are directly in touch with the broker in person and not online, paperwork is required to sign the agreement. Submission of a few documents like PAN card, a canceled cheque, identification proof, address proof, and photograph completes the process. Your trading account will then be linked to your bank account so that you can transfer the required funds from the latter to the former to facilitate trading.
In the case of opening an online demat account, though you may or may not be asked to submit all documents, a PAN card is mandatory. You are not allowed to handle the responsibility of taking care of your own demat account. The depository participant (DP) takes care of your account, trading, and transactions. Share brokers or stock brokers, R&T agents, and brokerage firms, registered under the SEBI act as DPs facilitating your trading in the stock market.