Is It Good to Have Multiple Demat Accounts?

Is It Good to Have Multiple Demat Accounts?

Demat account is the only mode through which you can trade in share or securities in the Indian stock market. As an investor, you can open multiple demat accounts with the same PAN with different brokers. Having multiple demat accounts have their own advantages. In this article, we will understand the benefits of having multiple demat accounts.

To answer the basic question first – Yes, it is absolutely a great idea to have multiple demat accounts.

Why You Must Have Multiple Demat Accounts

In India, it is legal to have multiple demat accounts. However, you cannot open multiple accounts with the same broker. This provides the benefit of availing the facilities of multiple brokers. Like for example, if one broker is not providing a certain service, it can be availed through the other broker.

With multiple demat accounts, you can segregate the long term investment and short term investment. For example, in one demat account, you can keep all your long term investments and in another demat account, you can hold short term investments. This approach not only avoids any confusion but also makes you a disciplined investor.

Another benefit of multiple trading accounts is that you get to know about different trading interfaces of the broker. Depending on the ease and simplicity of the software, you can select the trading platform of your choice.

Moreover, by having two demat accounts with two different brokers you can do more transactions with the broker whose brokerage charges are less. This helps you in saving a lot on the trades or investment in the stock market over a period of time.

Some brokers provide better trading facilities than the other. In such scenarios, multiple demat accounts are of great use. By availing the better trading facilities at one broker you can trade with more leverage limit and make higher returns.

However, before multiple demat account opening, you must consider the need for the same. If you figure out the requirement for having more than one demat account, you must open it with different brokers. The decision to open multiple demat accounts must be taken only after analysing the advantages and disadvantages.

If you are looking to open a demat account, you can contact Kotak Securities and enjoy their premium services. With Kotak Securities mobile trading application, you can view live stock prices, track your portfolio and place trades on the move.

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