InvestorQ : Is there any advantage of having trading and demat with same broker?
Rutuja Nigam made post

Is there any advantage of having trading and demat with same broker?

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Ria Roy answered.
2 years ago

Ok, there is nothing mandatory about it. Some of the brokers are insisting that they will encourage investor clients only if the demat and trading account is with them. While this is surely more convenient, there is nothing mandatory about it. You are free to have your demat account and your trading account at two different outlets. The choice is entirely yours. A demat account is a must if you want to trade in equities. A demat account is the equity equivalent of a bank account. Just as a bank account holds your cash, the demat account holds your shares and other securities in custody.
What are the factors to consider before opening your demat? Are there any questions to be asked before opening a demat account? What things to take care while opening demat account? Let us focus on some key things to know about demat account. Ensure that your demat and trading are with the same broker. Normally, brokers will open your trading-cum-demat account in one go, so this should not be a real issue. What if your broker does not have a DP license? Then you must ensure that once you sell shares with your broker, you actually submit the debit instruction slip (DIS) to your broker on time. Please don’t leave the DIS booklet or signed loose leaflets with the broker.
That is neither a legitimate practice, nor is it safe. If you don’t submit the DIS on time then it can result in bad delivery and lead to losses. When your broker and DP are the same, this entire process becomes simpler and seamless. In fact, you can opt for online demat and trading and give your broker a power of attorney (POA) to debit the demat account in the event of sale and credit the demat account in the event of purchase. By having the trading and demat account at the same place, you save yourself a lot of hassles.