Don’t you have any Demat and trading accounts? And you want to open A Demat Account? Then follow our step-by-step guide to open a Demat Account here, I have shared the Demat Account Opening Procedure & Format, but first, we shortly know what Demat account?
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What Is A Demat Account?
“Demat stands for a dematerialized account which holds the stock that you have purchased in digital format.” It was similar to your bank account, where you can store your financial security.
Opening Demat accounts are as easy as you open a bank account. You only need a few documents and a bit of time, and your Demat and trading account ready to use.
let’s discuss which documentation is required to open a Demat and trading account
Required Documents For Open A Demat Account?
As I mentioned to you, it did not require many documents. The documents you needed for Open A Demat Account are straightforward and listed below:
- Proof of Identity:- documents used to verify your identity
- E.g., Driving license, voter id,
- Proof of Address:- A proof of residence is a document confirming where you live
- E.g., Passport, aadhaar card.
- Proof of Income:– For trading in derivatives such as F&O
- E.g., bank statement, copy of ITR acknowledgment.
- Proof of Bank Account:- to verify your bank information
- E.g., Cancelled cheque, passbook copy.
- PAN Card
- passport size photographs
Required documents are the same in the online and offline account opening procedure. Collect all required documents, then start the account opening procedure step by step.
How To Open A Demat Account Online?
All you need to open a Savings Account online is a mobile phone or laptop. You can initiate the process with just your mobile number email id, and the rest of the procedure does not vary much.
The steps you need to follow to demat account opening is given below:
#.Step 1. Select The Best Demat Account Provider
Choosing the right demat account providers (stockbrokers) is challenging for beginners. Select that stockbroker who offers you the best service in the market.
For our recantation, you select Upstox, Zerodha or IIFL Securities, etc., stockbroker because they offer zero account opening fee plus lovest broking charges in the market.
if you want more information about the best stockbrokers list in India, then visit this article
#.Step 2. Fill Up Demat Account Opening Form.
When you choose a good stockbroker, go to their website and fill up a demat account opening form. In the account opening form, the stockbroker asks for simple information Like your name, mobile number, and email id. Fill up all the required details.
#.Step 3. Read All Related Documents Carefully.
Investors must access the risk factors associated with their investments, and they must ensure that the securities investment risk aligns with their risk appetite and tolerance level.
In documents broker also gives you all investment-related charges and risk information. Read and save all documents carefully.
#.Step 4. In-Person Verification.
After the documents submission broker verifies your documents, this process takes a maximum of 12 hours. in this time, the broker calls you to confirm details. If you have any queries, ask them.
#.Step 5. Demat Account Number And Client ID.
After completing all verification processes, you will instantly receive your customer ID and password.
So you can transfer money from the bank to a demat account and start trading.
How To Open A Demat Account Offline?
The steps you need to follow to open a Demat Account offline is given below:
- find your nearest stockbroker branch or sub-broker
- Visit the branch
- Fill up the account opening form
- Submit KYC documents (ID and Address proof)
After submitting all documents, your Demat Account will be active within a few days.
Demat Account Opening Related FAQ
What Is A Demat Account?
- A Demat Account is an account that holds the stocks or other financial instruments in an electronic (or dematerialized) form rather than the physical form. Principally, it is like a bank account where you hold your deposits.
Who Is The Best Stock Broker To Open A Demat Account?
- upstox, Zerodha, Angel one, and IIFL Securities are the best stock brokers to open a demat account.
Can I Open A Demat Account Online?
- Yes, you can open your Demat account online. Go into the broker’s site and fill out the lead form.
How Much Does It Cost To Open A Demat Account?
- Many stockbrokers offer zero account opening fees. And the exact costs are up to ₹300-700.
Can I Open a Demat Account Without A Stockbroker?
- Yes, you can open your demat account without a broker. But if you want to trade your stocks, it is not possible to trade without a broker. Stockbrokers are licensed members of SEBI who trade stocks of an ordinary person through stock exchanges.
Can I Open Demat Account Free?
- Yes, you can open a free Demat account online. Just make sure you understand the charges involved. There will always be an asterisk (*) over anything free, and you should proactively check the exemplary description accompanying it.
Can I Open 2 Demat Accounts?
- In India, It is legal to have two demat accounts. However, they must not be with the same stock Broker.
What Are The Minimum And Maximum Ages Limits For Opening A Demat Account?
- There is no age limit for Opening a Demat account. A demat account is just like a bank saving account.
- As you can open a savings account for a minor, the same Demat account can also be open.
- Here restriction is not on depositing shares in electronic form. But the question is when you can do trading in this minor Demat account.
- For the opening of a trading account, one must be 18.