Free Demat Account Perks & Drawbacks You Must Know

Stock markets have been prevalent in our society for quite some time. People are also intrigued by it; some of them spent quite a long time speculating on it to earn profits. The idea of the stock market is not complex but beneficial. The stock market is mainly used by bigger companies to earn profit by sharing the shares of the company which can go up rapidly based on the performance of the company. Now, to know about the happenings of a stock market a person must have a Demat account. A Demat account gives access to an individual inside the stock market. By demat account open, we mean that the account is nullified of any existing charges which can happen if a person takes the help of a brokerage.


  • Security and safety are not compromised:

There is a higher possibility of theft or loss of the bond certificates that are obtained after trading. Once they are lost, one has to go through a lot of legal hassle to reclaim them. Therefore, a Demat account will keep all these documents way safer. 

  • Settlements are way quicker:

The settlement of trade used to require a minimum of 14 working days. But after the introduction of a free Demat trade account, the trading day ranges from 14 to 2 working days. Thus, reducing the effort and time.

  • Fewer mistakes are made:

Offline trading often causes a lot of manual errors, which are not at all helpful. These errors were often called vanda or trading mistakes. But with the availability of a Demat account, these careless mistakes are reduced.

  • Reduced cost:

Previously a bounty price had to be paid for opening and maintaining a Demat account. This problem has been solved with the introduction of the free Demat account, which is more efficient and cost-friendly.


  • Dishonest brokers:

All stockbrokers provide a free Demat account, which makes it difficult for an individual to choose the correct and trusted one. This makes them prone to mistakes such as choosing the wrong broker who can betray them in the future.

  • Can disturb your portfolio planning:

While investing, everyone has a portfolio in mind. But with a free Demat account, you can surf through the tech market and get more and more new ideas. Thus, making it difficult for you to stick to your initial plans.

  • Intermediate knowledge of technology is crucial:

Intermediate knowledge of the technology is enough for anyone to handle a Demat account. Because relying completely on the broker is not always a good idea as they are an outer person, and there will be a risk of getting cheated.

CONCLUSION:Looking at both the advantages and disadvantages of owning a free Demat account. The disadvantages got cancelled out by its advantages. Moreover, a demat account working is very important to go on with the online stock market trading to earn more profitable stocks and invest for a better future. Make sure that you choose a trustable broker who can provide you with a proper free Demat account.


Ajay Deep

Ajay Deep is a young enthusiast who Loves Chandigarh and is always eager to make this beautiful city even more beautiful. A Mechanical Engineer By Chance and Working in an IT MNC by Choice. A Writer, Photographer and a Budding Entrepreneur. A Designer, Developer and Digital Marketing Expert. In brief : A Jack of All Trades and Master of Few :) You may reach Ajay Deep at
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