you might have many questions like how to open demat account, or you have idea with broker but dont know how to open demat account and wondering how to open demat account with groww, how to open demat account with upstock, how to open demat account zerodha, how to open demat account with angel one, how to open demat account with 5Paisa
Lets First know What is Demat Account and why do you need it?
before open demat account you must need what is demat account?, it is a Platform which allows you to sale and purchase any shares in stock Market, but as per RBI Rules No Broker can Hold your shares, your purchased shares will be safely stored with CDSL which is an Online Vault which can only accessed by you with BO id, TPin and OTP, so no Matter who your broker is your funds and your shares will be safe.
Where to Open My Trading Account?
first thing you should keep in mind while opening a Demat account is which Platform is giving you best discount on Trades, now a days everyone is looking for the platforms which are giving heavy discount on stock trading
Steps to Open Trading Account.
Step 1. Finding Best Broker for opening Account
first Step is to find a good Broker but make sure the Broker you are choosing is reputable or not, and most important is your Broker is capable of providing services you are looking for, is your Broker offering discounted Trading or not?
i have Prepared a list of Good Brokers to choose from, there are some broker who lets you open free Demat Account and some charges you money for opening Demat Account, the Brokers who are charging money to open Demat account are providing some extra features in their apps and portals which can make some work easy for you,
Demat Account Broker
if you are wondering how to open account with Groww you can click here and open account with Groww,open account with Groww and you will get great discounts and so many features
if you are wondering how to open account with Upstock you can click here and open account with Upstock, open account with Upstock and you will get great discounts and so many features
if you are wondering how to open account with Zerodha you can click here and open account with Zerodha,open account with Zerodha and you will get great discounts and so many features
if you are wondering how to open account with Angel Oneyou can click here and open account with Angel One and you will get great discounts and so many features
if you are wondering how to open account with 5Paisa you can click here and open account with 5Paisa,open account with 5Paisa and you will get great discounts and so many features
there are Many More Discounted Broker available which of them i have picked the best one for you
Step 2 Providing Basic Details
as per rules by SEBI (Securities and Exchange Board of India) every Demat Account Holder should provide their broker with some basic details and KYC, so your broker will ask you for some basic details like first name, last name, email address, phone number , PAN Number etc.
Step 3 Provide Bank Details
since Demat account transactions involves money it is mandatory to provide your bank details like bank Account Number, IFSC Code, Branch Name, Bank Account Holder Name your money deposit and withdrawal will be done by this account itself
Step 4 Upload Documents
after adding bank details you have to upload required documents like address proof, identity proof, income proof( income proof is only required if you need to do the futures and options Trading)
Step 5 E-Sign With Broker
after completing all the formalities your broker will provide you with Aadhar linked contract to E-Sign after you E-Sign this contract your Demat will be Ready withing 24 to 48 Hours, some time it doesn’t even take more than 4 hours to approve
Charges of Demat Account
as i said before some broker offer free Account Opening some may charges you money, so lets discuss what are the other charges you need to pay with your Account
- Account Opening Charges
some broker does not charge anything for account opening but some broker might so before opening Demat account you need to do some research and find out which broker is charging less money to open Demat account or making it free, this is the charges which is one time charge your broker will not ask you for this charges once again
2. Annual Maintenance Charges
annual Maintenance Charges is charged to you by your Broker every year for maintaining your Account, which can also be varied between broker to broker
3. Pledging Charges
if you have some shares in your holding and you want to trade in future and options but do not want to do it with extra money, you can do it by pledging your existing shares and your broker will provide you with some money to trade with in order to pledge your shares your broker charge you some money it also can vary between broker to broker
4. Unpledging Charges
when you are done with the trading amount and now you want to unpledge the shares you might need to pay some amount to you broker for un pledging but keep in mind that mostly this charges are also not taken by some brokers
i hope you find this information useful, and please let me know in the comments if you need any other information regarding this topic