When thinking of multiplying your wealth, stock trading is usually on top of everyone’s minds. To make your hard-earned money earn wealth, you should first think of creating a Demat account.
It is an easy process and can be created with any broker or bank registered as a Depository Participant with the Depositories.
How to earn profit from Demat account?
Demat is an electronic storehouse for share certificates, and one of the benefits is an easy and quick transfer of securities from Demat to the trading account. Thus, you can make quick transactions and capitalize on opportunities to make a profit from trades.
One of the long-term and sustainable methods is to start researching various companies or industries and learn about how macroeconomic factors affect their shares. This can be a long arduous process and everyone might not have the time or inclination for doing so.
However, there are few standard thumb rules you can follow to invest in the best way possible and a disciplined approach will surely help in keeping the costs to a minimum. To add to it, a Demat account offers quick transfer of shares with ease which is not possible with physical share certificates.
Let us look at the best ways to invest your money with profit –
- Costs – Ensure you open a Demat account online with a broker/financial institution that offers you options between a flat rate payment on a certain number of transactions and also a percentage brokerage that can be negotiated on if your volumes grow higher.
- Earning from your Securities – You can also loan your securities – called as securities lending – through your broker. If you are in immediate need of cash, you can also loan out your securities which are high in value; for cash.
- Common account for all securities – You can also ensure to go through a broker who allows you to invest in various securities such as stocks, mutual funds, derivatives, and so on. You can have multiple trading accounts linked to one Demat itself. This can be a great way to segregate trading accounts for various uses – long-term and intraday trading.
- International Investing – With Demat accounts that allow the transfer of securities within country-specific limits, you can profit with trading opportunities in international markets. This would not have been possible in a physical certificate scenario as the processing time and costs are huge.
- Security – With banks and financial institutions adopting more stringent and state-of-the-art security features, you are assured of zero losses on account of theft or hacking which is the usual fears in online investing.
Thus, a Demat & trading account can help get started with investing in multiple modes to earn and grow wealth. If you plan to trade frequently, ensure you get a good deal on the brokerage and learn about technical and fundamental analysis. If you plan to be an easy-going and passive investor, play it slow and do thorough research via reliable sources to find hidden gems in the stock market. Keep a check on your periodic Demat statements to know what quantity of which security you are holding and your profit and loss against each.