Procedure To Opening a Trading And Demat Account

 If you are planning to buy securities (like shares, mutual funds or ETFs) online, then a demat account (dematerialized account) is essential for you. You can open demat account either online or offline by submitting physical forms. Here are some Important points to considered while opening a new trading and demat account.

Important points for opening a new trading and demate account:

1. Choosing the right broker who fits on your trading style and your financial goals is more important than your account opening method.

2. Some brokers charge more for opening offline account than online, so ensure that you check all costs associated with the account opening procedure on broker's website.

How to open a demat account

Before you open your demat account, select your broker. Selecting the right could depend on various factors like brokerage fees/charges (we have explained more on this below), platform's charges , and its customer service.

In this digital world, the way how you apply for your demate account matters. Your broker will help you to open a demat account in the easiest way way possible. Is it the traditional method involving physical paper forms? Or the all new Aadhar-based paperless online method?

We will list them here step by step to help you figure out what is easier.

Steps to open your demat account

Opening a Demat account online

In this digital world where everything is online, there shouldn't be any reason to be filling a form offline when almost all of your data is stored online. Some brokers came up with the online procedure of opening a demat account where a you can complete the registration process online. You just need to have your Aadhaar card linked with your mobile number and keep your PAN card handy.

Opening a demat account with Upstox

1. Go to the Upstox Demat account opening page.

2. Enter your Mobile number and get started.

3. Complete your basic details.

4. Keep your documents (Aadhaar card, PAN card) with you when you are directed to upload your documents.

5. Enter your aadhaar number and otp to verify your identity.

That's it. Now your demat account should be created.

Opening a demat account offline

To open a demat account offline you have to go through these processes

1. When you visit your broker's office or if you're meeting its employee they will hand you an account opening form.

2. You will need to fill the account opening form, and attach your identity proof and address proof. These proofs can be submitted in the form of photocopies of the documents.

3. After Completion of this, you will have to sign an agreement with your broker. This document will state your responsibilities as a investor/trader, and that of your brokerage firms. Keep a copy of the document for future reference.

4. After this your broker will verify and process your document, and after that you will be given your account number. This number is called the Unique Client Code(UCC) if you are trading with Upstox or Beneficial Owner Identification Number (BOID).

You will also get additional confidential data, like your Login ID and Password to access online portals and placing trades. Remember that these transactions are likely to attract charges. You might be charged for using certain portals.

Different charges of demat account

There multiple sorts of charges you are likely to come across, both during the time when you hunt for your preferred broker and when you have completed your registration. Mainly there are tree type of charges for demat account:

1. Account Opening Charge: Account opening charge is the fees your broker will collect for whole registration process. Not all brokers charge this fee, so you are likely to come across a few where you would not be paying any such fees. Some brokers might charge a nominal account opening charge to trade on different segments.

2. Annual Maintenance Charge: Annual maintenance charge is a prepaid amount that your broker collects to keep your account active throughout the year. While these charges are nominal (Rs 300 - 800) for the year, many brokers in the industry now begun to charge zero fees here as well.

3. Transaction Fees: Transaction fees refer to the charges your broker will levy for moving(debiting and crediting) your stocks or other securities to and from your demat account. This can vary across brokers depending on their target audience.

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