The online demat account is developed on technology and the Internet communications network. It provides for electronic storage and record keeping of shares invested in by traders and also facilitates the transfer of shares from sellers to buyers in a fraction of a second. Suited for the new age investors who are tech-savvy and need convenience and speed while trading in shares, the demat account has brought a revolution in share trading.
With the passage of the Depositories Act in 1996, the online demat account came into existence. Investors can open demat account online by applying through broking firms. Brokers handle the end to end process of applications and operations of the demat account on behalf of clients. Demat account opening allows traders to proceed with the buying and selling of shares via electronic modes in the secondary markets. To open demat account online, simple formalities such as KYC requirements need to be fulfilled by the traders for a listing of the demat account with depositories (NSDL- National Securities Depository Ltd. and CDSL- Central Depository Services Ltd.)
As the demat account is based on technology for its operation, concepts such as mobile apps, analytics and artificial intelligence have entered the foray of trading and share markets. Broking agencies are important intermediaries between issuing companies and traders for a smooth trading process. Investors rely on advanced technologies for trading in the markets nowadays. Here are the ways by which smart mobile applications make trading through demat accounts better:
- Graphic interface: Mobile apps of broking agencies have a graphic interface. These apps are suitable for both Android and iOS devices. Traders to go through the app and its features at their convenience.
- Ease in registration: Mobile app registration is a one time and lucid process for traders. Most broking firms provide for free registration to users, to encourage higher app traffic. Traders can log on and register themselves for account creation in a few minutes time.
- User-friendly features: Smart mobile apps contain all the features for a user-friendly experience. As these apps are designed and developed after thorough market research and target audience analysis, they provide a convenient and smooth ride for users, with power-packed features for their benefit.
- Online and on the go record: Traders can obtain an immediate record of share transactions, brokerage fees paid or payable, recommendations, news on the markets and other such information on mobile apps. They provide on the go records for the busy and tech-savvy investors of today’s times.
- Broker interaction: Mobile apps by broking firms are a valuable source for interaction with brokers regarding the purchase and sale of shares. Brokers can also be approached for investor complaints or grievances related to the trading process and the demat account. A reliable point of contact is very important for communication and building trust between the brokerage agency and investor in shares.
- Expert recommendation: Smart mobile apps and website interfaces of brokerage firms give tips for making investments customised for individual investor’s investment goals. They help in the financial planning for investor’s hard-earned wealth by giving expert recommendations on high earning stocks and best-expected performers in the market.
- Material for investor research: Trading is based on macroeconomics, market movements, and the impact of global economics on stocks and company performances. Mobile applications have a wealth of information on industries, stocks, price movements and historic trends to assist traders to make decisions regarding share trading.
- Coordination with other accounts: The demat account is linked to investor’s trading and bank accounts electronically. Special mobile apps by brokers can help to coordinate the accounts for a seamless trading experience for traders. This would save time and energy wasted in tracking movements of the three accounts.
Smart mobile apps can indeed make life easier for traders by integrating the various stages of share investments such as registrations, stock selection, broker recommendations, news and information related to the trading environment, grievance redressal and record keeping. Novice investors require adequate hand-holding when it comes to trading in shares electronically. The trading markets have become very dynamic and volatile in today’s times.
Mobile applications have penetrated every field such as online shopping, fashion, interior decoration, grocery shopping and even wedding planning. The fintech revolution has brought a plethora of apps related to broking, financial planning, investment advice apps and trading tips apps. Investors have access to a wide range of free apps and websites to further their knowledge on their personal investments.
Demat accounts have introduced electronic trading for investors, which is a fast and reliable method of trading. Electronic trading is a secure method of trading and an improvement over the older physical trading of shares. Mobile apps by broking agencies facilitate investor friendly applications and information for trading. Smart and effective strategies can be read from these apps by broker recommendations on the go.