The stock market is bringing more opportunities for investors. India is the top performer in 2022 among the world’s biggest markets. Despite the disruption due to various micro and macro factors, it has shown a healthy recovery in economic activities, resulting in sound corporate earnings. Domestic equity benchmarks Sensex and Nifty are in the green with greater positive market sentiments, attracting more investors. The convenient investing process draws more attention to benefit from such favourable stock markets. Investors require a demat account and trading account to access primary and secondary stock markets.
What is the Role of Demat Accounts in Investing Money
The stock market is bringing more opportunities for investors. India is the top performer in 2022 among the world’s biggest markets. Despite the disruption due to various micro and macro factors, it has shown a healthy recovery in economic activities, resulting in sound corporate earnings. Domestic equity benchmarks Sensex and Nifty are in the green with greater positive market sentiments, attracting more investors.
The convenient investing process draws more attention to benefit from such favourable stock markets. Investors require a demat account and trading account to access primary and secondary stock markets.
What is the Role of Demat Accounts in Investing Money
A demat account is an online account to begin the investing journey in the stock market. The following are the primary functions of a demat account that helps individuals to invest money conveniently:
Digital Storage for Numerous Financial Assets
A demat account is electronic storage for numerous financial assets. Investors can store their investments in equities, bonds, mutual fund units, derivatives, government securities, etc., under one roof. Brokers meeting all the standards defined by the SEBI provide an online share market app. It allows investors to grab investment opportunities from anywhere at any point in time.
Hassle Free Dematerialisation
Stock markets deal with digital securities only. Investors holding securities in paper form have to dematerialise these securities to trade them on stock exchanges. They need a demat account to initiate the dematerialisation process.
Receive Corporate Benefits
A demat account gives you corporate benefits investors receive on their investments. It can be dividend earnings, interest, right issues, split issues, etc.
Investors hold their multiple assets in a demat account. It makes tracking investments’ performance convenient. Investors can keep monitoring their portfolio and know if you align it with the set financial goals.
Investing Money at Reduced Risk
A demat account gets debited with a sell transaction and credited with a buy transaction. The SEBI (Securities Exchange Board of India) keeps a close eye on each transaction made in demat accounts. Strict scrutinising of trades by the SEBI ensures investors the safety of their investments. There is no risk of forgery, delays, and fake securities. Investors can be assured about their investments made using the demat account or the best Indian stock market app provided by the broker.
What is the Role of Trading Accounts in Investing Money
The key functions defining the role of trading accounts in the stock market are as follows:
Access Traders Online Trading Platform
A trading account is an online account that allows investors to access stock exchanges operating online. It gives access to the broker’s trading platform linked to multiple stock exchanges. Investors place trade orders on the trading platform that are processed on stock exchanges online.
Link Between Demat and Bank Accounts
A trading account links demat and bank accounts. Required amounts of money from the linked bank account are transferred to the trading account and investors can fund their trades.
Speedy Trading Transactions
Trades placed using a trading account can be settled fast. It takes only T+2 days (transaction day + 2) in the online trading system. Trade settlement was a matter of months in the offline trading system.
A source of Reliable Information and Data
Stock trading is all about making the right decision. Trading account holders get valuable research reports that add to their knowledge about the stock market. They can get the latest data in these reports prepared by experts in the industry. Investors can make informed investment decisions using such insights and increase the probability of significant returns.
Mobile trading apps have introduced flexibility to online trading. Brokers facilitate investors with mobile-based trading apps. These online platforms allow investors to access their trading accounts using smartphones and other hand-held devices with stable internet connectivity. Grab trading opportunities anytime from anywhere.
Thus, demat and trading accounts are mandatory accounts to start investing in the stock market. To open the best accounts with cost benefits, most investors trust reputed discount brokers, offering free demat and trading accounts.
Make money with a trading app
Changes in technology have resulted in increasing volumes on stock exchanges. Stock trading apps can help users make money as they provide updated and live market data. If traders can make informed decisions and strategise their trades or investments, they can participate in the Indian stock market and gain significantly. Here is how trading apps help investors to make money:
- Simple User Interface
Online trading apps have made it so simple to participate in the market. Even beginners can use these apps for stock investing or trading in the market.
- Smooth IPO Applications
IPO (Initial Public Offering) investments are considered an opportunity for retail investors as they can earn significantly over time with the growth of the company. Depending on their choice, investors can invest for listing gains or long-term gains. Using a renowned Indian stock market app, online IPO investing is fast, smooth and convenient.
- Live Market News
Numerous conditions, events, government rules, international transactions, speculation/expectation, etc., impact stock prices. Mobile applications allow users to access real-time financial news to make decisions for stock investments or trade them.
- Up-to-date Research Reports
Trading apps of renowned brokers allow users to increase their knowledge with research reports. They are prepared by industry experts and help individuals to gain insights into current market trends, market phases, different types of investments, return expectations, etc.
- Invest in Curated Stock Baskets
Investors looking for ready stock baskets can also make money using a renowned discount broker’s trading app. The broker offers readymade and curated stock baskets called Investpacks. Individuals who do not have enough knowledge or time to analyse individual stocks, can utilise these theme-based Investpacks and start investing online.
Thus, stock trading using online trading apps is potentially profitable. Mainly, money-making depends on different factors, including the trader’s experience, knowledge, strategy and analysing skills.