How to Use a Demat Account App

A Demat account app helps you access your Demat and trading accounts digitally. It also makes it easier to check your holdings and manage account-related activity.

• A Demat account holds your shares and other eligible securities in electronic form.
• A trading account helps you place buy and sell orders in the market.
• A linked bank account handles the money used for buying and selling securities.
• A Demat account app can help you check your holdings, transactions, and account details.
• Demat account charges can include account opening fees, annual maintenance charges, and transaction charges.
• The exact charges depend on the Depository Participant and the type of account you choose.

You can open demat account online after checking the services and charges offered by the Depository Participant.

A Demat account works together with a trading account and a bank account when you buy or sell shares.

For example, suppose you want to buy 10 shares of a company. You place the buy order through your trading account. The money comes from your bank account. After the transaction settles, the shares are credited to your Demat account.

What does a trading account do?

A Demat account holds your securities electronically. A trading account helps you place orders to buy or sell them.

Think of a trading account like a shop counter where you place your order. The Demat account is like the storage space where the shares you buy are kept.

For example, if you buy 20 shares, you place the order through the trading account. After settlement, those 20 shares are credited to your Demat account.

Why do you need a bank account?

Your bank account handles the money used for your transactions. When you buy securities, the required money comes from your linked bank account.

When you sell securities, the sale amount is credited according to the settlement process and your account setup.

For example, if you buy shares worth a certain amount, the required money comes from your bank account.

A basic service Demat account is another type of Demat account available to eligible investors under the applicable rules.

Using a Demat account becomes easier when you understand the process step by step.

The main steps are:

• Keep Funds Ready: Keep enough money in your bank account when you plan to buy securities.
• Place the Order: Use your trading account to enter a buy or sell order. A normal bank account cannot directly place a stock market order.
• Complete the Transaction: Once the trade is completed and settled, the required money and securities move between the relevant accounts.
• Check Your Demat Account: Purchased securities are credited to your Demat account after settlement. When you sell securities, the required securities are debited from the account.
• Use the App: You can use the available Demat account app or online platform to view your holdings and access account-related information.

For example, suppose you buy five shares. You place the order using the trading account, the money comes from your bank account, and the five shares are credited to your Demat account after settlement.

Also read: Add nominee to Demat account

Different charges can apply to a Demat account. The exact amount depends on the Depository Participant, account type, and services used.

Common types of charges include:

• Account Opening Fees: Some Depository Participants charge a fee to open a Demat account, while others do not.
• Annual Maintenance Cost: Some Depository Participants charge a fee for maintaining the Demat account.
• Transaction Fees: Certain Demat account transactions can attract charges. The amount depends on the Depository Participant and the type of transaction.

You can check the applicable Demat account opening fees before opening an account.

For example, think of a Demat account like a service you use to hold your securities electronically. One charge may apply for maintaining the account, while another can apply when certain transactions take place.

A Demat account app helps you access and manage your securities digitally. Your Demat account holds the securities, your trading account helps you place buy and sell orders, and your bank account handles the money.

Understanding the job of each account makes the process easier for beginners. Before opening or using a Demat account, check the applicable account opening fees, maintenance charges, and transaction charges so you understand the possible costs involved.