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How to Open Demat and Trading Account?

As more and more people attempt to invest in the stock market, some of the most frequently asked questions nowadays are - Do I need a PAN card to open a demat account, and what documents do I need? To make opening a demat account easier for you, we chose to cover the important aspects and the entire process in just one article. So, let's begin –

How to Open a Demat Account ?— Step-by-Step Guide

  • Select a depository participant (DP).
  • Duly fill and submit the Demat Account Opening Form.
  • Complete all the necessary KYC requirements and submit the paperwork.
  • Comply with the verification process and sign a contract with your DP.
  • You will receive a Beneficial Owner Identification Number once the application has been verified and approved by the concerned authorities.

Steps for Opening a Trading Account

  • After comparing the brokerage rates and services provided, select a reliable stockbroker or firm.
  • Duly fill and submit the account opening forms and complete the KYC process.
  • Submit all the requisite identity, address, and bank account proofs.
  • Your application will be verified and approved, after which you will receive the trading account’s details.
  • You can start placing a buy or sell order immediately.

Documents Required for Opening Demat and Trading Accounts

For opening a Demat or trading account, you will need to submit the following documents:

  • Account opening form
  • Proof of Identity (Driving License, Voter ID, Aadhaar Card, etc.)
  • Proof of Address (Passport, Voter ID, Aadhaar Card, Ration Card, etc.)
  • Proof of Income (Bank statement, salary slips, ITR, etc.)
  • Proof of Bank Account
  • PAN Card
  • 1 to 3 passport-sized photographs

Additional Read: Documents Required To Open A Demat Account

Types of Charges in Demat and Trading Account

When opening a Demat account, many depository participants charge account opening fees. You will also be required to pay an annual maintenance charge, custodian fee, transaction fee, and dematerialisation fee. Since these charges can stack up, it’s necessary to choose a broker or firm that fits your budget and fulfills your needs.

There are 3 main types of charges for a trading account: account opening charges, annual maintenance fees, and transaction fees.

Conclusion

Having a Demat and trading account is necessary for every investor. These days, opening both accounts online is extremely safe and easy, as is finding the right broker who fits your needs.

FAQs:

      1. Can I open a Demat account online on my own?

Yes, you can open a Demat account online in a few easy steps without having to get in touch with a broker or firm in person.

      2. Which is the best financial institution to open a Demat account?

ICICI Direct offers advanced services on Demat accounts that can be activated with zero opening charges. You won’t have to pay any fees for buying shares and securities and you will have access to a user-friendly interface as well as speedy transactions.

      3. What are the fees and charges in a Demat account?

You will be required to pay account opening charges by some DPs, along with maintenance fees, custodian fees, transaction fees, and miscellaneous expenses.

      4. Is it safe to open a Demat account online?

Yes, it’s safe to open a Demat account online as they verify your documents and conduct KYC in a thorough manner.

      5. How to open a Demat account?

  • Choose a depository participant (DP).
  • Fill and submit the Demat Account Opening Form.
  • Complete KYC requirements and submit the paperwork.
  • Follow the verification process and sign a contract with your DP.
  • You will receive a Beneficial Owner Identification Number once the application has been verified and approved by the concerned authorities.

Disclaimer

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.

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