Open demat account and shut the age old prejudices of off line trading

With the increase of the grip of media channels the stock markets have also increased in popularity. Just a few years back imagining a person sticking onto the stock market for hours was impossible. The lifestyle today, which banks highly on the technology, has welcomed share trading wholeheartedly. By mentioning technology I am stressing on the online share trading. People, especially who are net savvy, take few days to open demat account and start their constant eying on share prices. I like the system of online trading as it makes a trader omnipresent. A trader is vested with the access of watching share prices as well as keeping track of current news. Just imagine few years back, when we had to wait till the wee hours of next morning to know the current news.  

But in India we find people of different preferences of internet and thus there are people who abstain from online share trading. Probably the fear of security is the prime deterrent for the traditional traders to open demat account. I know many people who fear the computer itself and find it very weird that how can a share be stores in an electronic form. They are haunted by the question as to where the shares are stored and also their investment and the returns earned out of it. Such people should have knowledge about the underlying system of online share trading. I am not asking them to open demat account after reading my blog entry. But I expect them to come out of the unnecessary fear that is a common issue in every new trader.

Now what can keep the fear of traditional traders at bay? A detailed explanation of how the demat account operates, can earn the trust of the traditional traders on online share trading and demat account.

When you open demat account it appears as if the entire process is running within the computer itself but there is a long chain of physical transaction behind it. In order to open demat account an investor needs to open a savings account in a bank of his choice. Usually, a trader will be better off if he opens the savings account in s known bank rather than an unknown one. Once saving account is made the investor needs to fill the application form for demat account. This will require document verification.

Upon complete verification the saving account will be linked to the newly opened demat account. Henceforth all the monetary transactions relating to the demat account will take place through the saving account.

Now this is the real story behind the online share trading that many of the traditional traders aren’t aware of.  Once they get to know it they can have a hassle free trading immediately.