What is Angel One ?
Angel Broking Limited, trading under the brand name Angel One, is an Indian stockbroker firm established in 1996. The company is a member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited and Multi Commodity Exchange of India Limited.
Open Free Demat Account with Angel One
Angel Broking is a safe stock broker for trading and investment. Angel Broking is one of the largest stock brokers. They are in the business since 1987. They are a member of BSE, NSE and MCX. Incorporated in 1987, Angel Broking is one of the largest full-service retail brokers in India offering online discount brokerage services. The company offers a wide range of investment and trading services including stock and commodity broking, investment advisory services, margin funding, loans against shares, and financial products distribution.
Angel Broking is a strong neighborhood presence with 110 branches and 11,000 sub-broker offices in 1800+ cities in India as of June 30, 2018..
In Nov 2019, Angel Broking revamped its brokerage plans to compete with the discount stock brokers like Zerodha. Angel Broking now offers flat rate brokerage plan ‘Angel iTrade PRIME’. This plan offers to trade in all segments (Intraday, F&O, Currencies & Commodities) at fixed Rs 20 per trade except Equity Delivery, for Equity Delivery there are no charges, it is provided for free to all users. The same simple rate is applicable across exchanges and segments.
Angel Broking is famous for its excellent trading software’s and investment advisory. Angel is the first large-size full-service broker offering discount brokerage rates to its customer.
What is a Demat Account?
Initially, stocks and shares used to be exchanged via physical receipts called certificates. However, this resulted in lengthy paperwork and took up a lot of time. To counter this and to take advantage of an electronic trading platform which was gaining traction in West and the Asian Markets, the process of dematerialisation (demat) of shares was initiated in 1996. Physical share certificates were converted into electronic form securities of equivalent number and price and were credited to the investor’s demat account. Thus, the advent of trading commenced this way.
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You know what is stock Market?
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platform.
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Why you need to Open Demat Account?
Such accounts are of crucial importance today because, the entire financial platform of investing, trading and maintaining have become digitised. Hence, to enable the user with a seamless and straightforward experience, demat accounts are the necessity of the day. These accounts are essential to trade in India’s stock exchanges. Although SEBI – Securities and Exchange Board of India, has permitted traded up to 500 shares to be settled in the physical form, it is not a preferable option these days since it causes excessive inconvenience of maintenance and tracking.
A Demat account is more than just an account to hold securities. Through digitisation, it adds to market transparency and better regulation.
Investing in physical shares is a lot of paperwork together with a lengthy procedure and a high risk of receiving fake shares. To keep this entire process simple and streamlined, an investor should choose to open a demat account.
For investing , you need to have these three in place- a bank account, a trading account and a demat account. Open Free Demat Account withAngel One
How to Open Demat Account
Demat Account Opening is an easy process with these simple steps :
- Step 1: choose a Depository Participant (DP) to open the account with. A beneficial owner (BO ) account is opened with the depository.
- Step 2: an account opening form is required to be filled in with all the investor details, together with the supporting documentation copies of proof of address, proof of identity, proof of income etc. A PAN card is mandatory to open the account. All documentation should be presented in original as well for verification.
- Step 3: you will be provided with a copy of the rules and regulations as well as the necessary charges to be paid to your DP. An in-person verification will be conducted by a representative of the DP to confirm all the details and documentation provided by the investor.
- Step 4 : Once approved and documentation is submitted, your Demat account is opened and operational.
Open Free Demat Account with Angel One
An investor can open the account online in minutes through any bank or financial institution. There are various options available to open the account online; one such option is of Angel One.
Functioning of a Demat Account
All your shares and investments namely securities, bonds, mutual funds, government securities, ETFs are held either in electronic or demat form in your demat account. It is imperative to understand the process and bodies involved with the working of such an account. Below are the main functions of a demat account :
- Depository: at present, two depositories are registered with SEBI (i) CDSL – Central Depository of Securities Ltd. (ii) NSDL – National Depository of Securities Ltd. These depositories hold your demat account on your behalf. The working is similar to that of a bank.
- Depository Participant(s)(DP): is an agent of the depository through which it interfaces with the investor. Financial institutions, scheduled commercial banks, foreign banks having operations in India approved via RBI – Reserve bank of India, stock brokers, clearing corporations or houses, state financial corporations, NBFCs, share transfer agent, etc., complying with the conditions proposed by SEBI can be registered as a DP. Banking services can be availed through a branch; however, depository services can be availed via a DP.
- Portfolio Holding: the demat account enables you to view your portfolio holdings of investments every time a transaction is undertaken. Since it is an automated process every purchase and sale is recorded with the minutest details of price, date of purchase or date of purchase, quantity etc.
- Unique ID: every single demat account has a unique verification identity number. This is used during transactions to aid the companies to identify and credit the securities in the specific investor’s account. It is a unique 16 digit number, the first eight digits are the DP id, and the last 8 are the Client Id ( investor account).
Facilities Offered by a Demat Account
Demat account opening offers a wide range of facilities for the investor. Let us look at a few of them below:
- Transfer of Investments: A demat account aids the transfer of shares of an investor. By filling in a Delivery Instruction Slip ( DIS ) with all the relevant investor specifics, it enables an effortless transfer of shares.
- Dematerialisation and Rematerialisation: A demat account assists the conversion of securities into different formats easily. By instructing your DP – depository participant for dematerialisation, to carry out the formalities to convert the physical share certificate into an electronic form. On the other hand, the investor can get their electronic security holding converted back to the physical form via the process of Rematerialization, wherein an RRF – Remat Request form is to be filled in by the DP.
- Loan Facility: The securities held in the account can provide the investor his exact and detailed holding to enable him to apply for a loan from a bank or financial institution. The securities can be provided as collateral towards the loan.
- Corporate Actions: Such accounts assist the investor in tracking and maintaining his securities. This is specifically required to monitor split of any equity shares, bonus issues or any other action taken by the companies for their shareholders. These are directly updated in the account.
- Freezing your demat account: Investors are provided the option to freeze your account for a specific period or as per requirement. At times this is undertaken to prevent unexpected activities in the account. However, to avail this facility a particular amount of shares should be present in the investor’s account.
- Speed E- facility: NSDL has provided an electronic facility for their investors to complete a transaction through the submission of an e-slip which is then sent to their DP.
Things to know about opening a Demat account
The modern online account opening process has made it really simple to open Demat account. In fact, in the current system, you don’t even have to visit the broker’s office for account opening. You can simply fill in the electronic form, update mobile number and email id, and complete KYC compliance with a preferred DP and get a Demat account open under an hour. But as an informed investor, you must get aware of the following.
Documents needed for Demat: You need a list of documents to complete the KYC process. It includes identification and address proof, bank account details, PAN, Aadhaar, and such. You will get a list of documents required for account opening from the DP. Make sure you provide correct documents to avoid your application getting rejected.
Charges: There is an array of fees collected by the broker, ranging from taxes levied by SEBI to operational fees. Charges are a crucial metric to select the right broking house since these are additional costs you would need to bear along with capital fund investment.
Linking Demat: Opening Demat is the first step to invest in securities, but a Demat account is meant to hold the securities during transactions. You need a trading account, linked to your Demat, to carry out trading. You can have trading and Demat accounts with separate broking houses. But it adds to process requirement of transferring scrips from one account to another and transaction time. For faster and seamless transactions, you may open both the accounts with the same broker.
File nomination: Registering nominee to your Demat saves a lot of time and hassle in the future. It is an important step that we often ignore. However, we suggest naming a nominee for your account while opening the Demat.
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Additional Features Of Demat Account
These are some of the additional benefits you can enjoy with a Demat account.
Consolidation: It is possible to consolidate different portfolios of the same company to create a new portfolio. You can forward the physical certificates with a letter duly signed seeking consolidation to the RSTA of the company.
Account freezing: There is a feature that allows you to freeze your account, any security, and even any number of securities for a specific period. You can do it to prevent any unwanted action in your account.
Account types: Demat account can take different forms, just like a bank account. You can open a joint Demat account, or in the name of a corporation, multiple accounts, and even in the name of a minor. However, a minor’s Demat account will need a guardian to operate the account.
Benefits of Angel One Trading Account
Once you know how to open trading account, you have access to several advantages. Here are some of them:
- Secure trades: Carry out safe and convenient transactions through Angel One. Whether you’re on your laptop or mobile phone, intraday buying and selling is quick and seamless.
- Lower costs: Low brokerage fees ensure that costs don’t affect returns. Also, you can benefit from no charges for the first year.
- Real-time monitoring: Monitor stock price movements as they happen.