Varun Sharma

When it comes to online stock trading, a brokerage firm or a broker plays a vital role. Brokers become absolutely indispensible when you do not possess enough time to study the stock market, or you are a novice and have inadequate knowledge of stock market trading. A broker's role is important also because investing n share market is a serious business and involves huge amount of money and associated risks.

Opening a demat account in itself is very advantageous. Since demat account stores your investments in dematerialized or electronic form, all the risks related to the storage of securities in physical form are eliminated.

If you still did not open a demat account but planning to start with shares trading, you do not need to tensed and clueless for not getting proper guidance. There are many online platforms that can come to your rescue.

A demat, or DP or dematerialised account, can be defined as an account used for enabling an investor to hold various financial units in electronic form instead of holding it physically.

Demat is an abbreviation for Dematerialized. Demat account is meant for holding the securities electronically instead of holding it physically. Functioning of a Demat account resembles that of a bank account.