That was the 90’s, where opening a Demat account for trading with a broker was a tedious task. Because reach to the Brokers was not that easy for retails investors. But now the time has changed and most of the Stock Brokers offer their services for free to Open Demat Account with minimum documentation and hassle. Here in this article, we are going to learn How to open a Demat Account with the Best Stock Brokers in India.
Stock Market Investing became the top investment option in India after the dematerialization and rising technologies day by day. Stock Market & internet consumption in India boomed from 2016 when Jio entered the telecom sector and offered internet for free.
As I mentioned above that now in this digital era anyone can open a Demat Account with ease even sitting at his/her home. Because technology has gone through a long-time and shown improvements and developments that make it easy to invest in Share Market after Dematerialization (DEMAT).
But before proceeding further we should know that what is Demat Account and why we need a Demat Account.
What is a DEMAT Account?
DEMAT stands for the Dematerialised Account. The Demat account is an account with a Broker that holds your Shares and Securities in electronic form. It is just like your bank account where the bank account holds your money and has a record of your transactions, the Demat holds your Shares & Securities and keeps the record of your transactions.
Earlier if someone has some Shares then he has to hold in Physical form and transactions used to take a lot of time. Demat was introduced to reduce the transaction time and avoid these physical exchange of Shares & Securities.
Documents required for Demat Account Opening
As we all know that we need some documents to open an account just like a Bank Account or Saving Account. Here also we need some documents for the Demat Account Opening.
The following documents required to Open Demat Account:
- Proof of Identity (POI) (Aadhar Card, Driving license, Voter ID)
- Proof of Address (POA) (Ration Card, Passport)
- PAN Card
- Proof of Income (Copy of ITR Acknowledgement for trading in F&O)
- Proof of Bank Account (Bank Account Statement, Cancelled cheque)
- 1 to 4 passport size photographs
Demat Account Opening Process
If you have the aforesaid documents and ready to invest in the Share Market that you should follow the below-mentioned steps to open a Demat Account.
1. Choose a Broker
You, me, and anyone else can not go to the Stock Exchange directly for buying or selling Shares and Securities. That is why an investor or trader needs a Stock Broker. You should be wise while choosing the Best Stock Broker in India because there are so many fraud stockbrokers are roaming in the Stock Market.
You can consider our Best Stock Broker list to choose the broker that suits your requirements. I suggest you go with a Discount Broker to start investing in the Stock Market. Because a Discount Stock Broker will save some of your money in the Brokerage Charges.
Here are some tips for choosing a Stock Broker:
- Low Brokerage Charges
- Multiple Trading Platforms
- Trading Apps
- Your desired trading segment availability
- Internation Trading Accounts (in case you are NRI)
- Easy to reach
- Should have a great reputation
2. Visit the Branch or Website
When you’ve decided on the broker you need to visit the nearby Branch of the Stock Broker for opening a Demat Account. You should carry all the required documents for the Demat Account opening. The Broker representative will ask you to fill some forms and deposit copies of your documents to start the Demat Account Opening Procedure. It may take up to 7 days to complete all the procedures of Demat Account Opening.
Or if you don’t want to visit the Stock Broker branch then you can head over to your chosen Stockbroker website and simply fill the Demat Account opening form. A company representative will contact you soon and visit your address and assist in your problems while opening the Demat account.
3. Get Demat Account Credentials
When you complete step 2 then you will receive the Demat Account Login credential on your registered Email and residential address via post. You can simply login on respective brokers portal or Trading Apps using those login details and can start investing in the stock market.
Some brokers also offer Trading Terminal, Share Trading App and website. You should check your convenient trading tools to start with.
Bottom Line – Demat Account Opening
I hope you have a clear idea about What is Demat Account and How to Open a Demat Account. A Demat account is a must to Invest in Stock Market because it handles all transactions and holds your Stock in it. If you are new to the Stock Market then you should read about How the share market works, and the Best Investment Options.
FAQs – DEMAT Account
You can open DEMAT account online by simply visiting the website of your preferred stock broker.
Generally, stock brokers don’t charges any fee to open a DEMAT account, but some brokers charges a little as Rs. 300/-.
You need the PAN card, Proof of Identity, Proof of Address, Proof of Income, a Bank account and Passport size photos.
I don’t prefer a bank to open my DEMAT account as it charges a huge brokerage fee. So, it is always better to open a DEMAT account with a discount broker.