7 Reasons You Need a Demat Account Before You Invest

7 Reasons You Need a Demat Account Before You Invest

Opening a demat account is the very first step on your journey into the stock market. Think of it as your digital locker for all the shares and securities you buy - and without it, you simply can’t trade. Below, we walk through seven clear reasons why setting one up right now will save you time, money, and headaches down the road.

 
1. A Safe, Paperless Home for Your Shares
Gone are the days of handling flimsy paper certificates that can be lost, damaged, or forged. A demat account stores all your holdings electronically, under the strict supervision of SEBI and RBI. You’ll never have to worry about missing or stolen share certificates again.

 
2. Trade Instantly, Anytime the Market Is Open
With a demat account linked to your trading account, you can buy or sell stocks in a matter of clicks. Whether it’s on your phone during your commute or on your computer at home, orders execute in minutes—no more waiting in line or mailing forms.

 
3. Automatic Credit of Corporate Benefits
When companies declare dividends, bonus shares, rights issues, or stock splits, those entitlements land directly in your demat account. You don’t have to fill out any forms or chase your broker - everything happens seamlessly in the background.

 
4. One Dashboard to Track Everything
From your current holdings and intraday trades to detailed statements, all your data lives in one place. You can log in and see precisely what you own, what you’ve bought and sold, and how your portfolio is performing - no spreadsheets required.

 
5. Transparent, Low-Cost Structure
Traditional paper-based processes carry hidden charges - stamp duty, handling fees, physical courier costs. With a demat account, most brokers offer a clear, flat maintenance fee and per-trade brokerage. You always know what you’ll pay, and you keep more of your returns.

 
6. Access Beyond Stocks
Your demat account isn’t just for equity shares. You can hold mutual funds, ETFs, government bonds, and corporate bonds - all under the same login. It’s a single gateway to build a diversified portfolio, without juggling multiple platforms.

 
7. Fast, 15-Minute Paperless Setup
At mydemat.com, we’ve streamlined account opening to be fully online. In under 15 minutes you complete your KYC, e-sign your forms, and get instant confirmation. There’s no paperwork to mail, no broker visits - just click, sign, and start investing.  Click here to open your free mirae sharekhan demat account through us.