Investing in the stock market can lead to high returns, but high brokerage fees can hurt your returns. Traditional stockbrokers have a commission structure, which can cost several hundred or thousand dollars per trade. This makes it difficult for people with smaller portfolios to make profitable trades. Fortunately, there are now several options to open a Demat Account and trade in the stock market without brokerage fees. In this article, we will discuss the benefits of having a Demat Account, basic terminologies involved in stock market trading, how to Free demat account with zero brokerage, and tips to trade in the stock market without brokerage fees.
Benefits of a Demat Account.
A Demat Account is a digital account that stores your securities in electronic format. The Demat Account eliminates the need for physical certificates and helps share transfers go smoothly. Demat Accounts have several benefits, including:
- Easy and convenient stock trading: Having a Demat account is a prerequisite for stock market trading. It makes trading simple, quick, and convenient. Trades can be executed swiftly, which helps take advantage of market trends and price fluctuations.
- Cost-effective: A Demat Account eliminates physical shares, resulting in low-cost trading. Account holders can save money on paperwork, storage, and other expenses.
- Safe and secure: Physical shares are prone to theft, damage, or loss. A Demat Account offers a secure and safe method of storing securities electronically.
Basic stock market terminology.
To start investing in the stock market, having a basic understanding of share market account open terminologies is important. Some common stock market terminologies that you should know about are:
- Market Capitalization: Market Capitalization is the total market value of a company’s outstanding shares, calculated by multiplying the company’s share price by the number of outstanding shares.
- Bid Price: The bid price is the highest price a buyer is willing to pay for the stock.
- Ask Price: The asking price is the lowest price at which a seller is willing to sell the stock.
- Dividend: A dividend is a distribution of profits to the company’s shareholders, typically paid at regular intervals.
- Earnings Per Share: Earnings per share (EPS) is a company’s profit divided by the number of outstanding shares.