The first question arises in our mind: what is a Demat account? Why do you need a Demat account and what are its uses?
Today we are going to provide all information regarding what is a Demat account and from where you have to open an account and which broker is best.
Although there are multiple discount brokers available which provide Demat accounts on very nominal charges.
What is a Demat account?
Demat Account is a type of account where you can buy or sell shares or hold a share.
This account is a mode through which buying or selling of shares is conducted.
You can’t buy or sell a share without a trading account.
Just like a normal bank account where you can send or receive money through online mode directly into your bank account.
Similarly, in a Demat account, you can sell or purchase a share through online mode directly in your trading account.
How to open a Demat account?
Basically, there are two methods through which you can open your Demat account that is through online mode or offline mode.
Sher Khan broker, ICICI direct broker, Kotak etc are some of the full-time brokers that provide the facility to open a trading account through their branches which is available all over the country.
But if you are interested in opening an online trading account through a discount broker then Zerodha, upstox, and flyers are very good options.
As per my opinion if you are a beginner in the field of trading then you can choose a discount broker because they will provide the best facility at a very low price.
And the account opening charges are also very minimal which vary from 300 rupees to 500 rupees.
Documents required to open a Demat account
Documents required to open a Demat account are:
- A Pan Card is mandatory.
- Adhaar Card.
- White background Photo
- Last 6 months Bank Statements
Which discount broker is best?
According to me, I personally use Zerodha for Equity trading because of the two most important reasons.
Firstly, Zerodha user interface is very friendly or you can say that I am very comfortable in doing trading with Zerodha terminal.
Another reason, The charges per trade is only 20rs or 0.01% whichever is lower.
You can go with Zerodha for better support or Upstox & fyers are also good in terms of charges.
How much time is required to open a Demat account?
It usually takes 24 hours to open an account with a discount broker. In case of Full-time traders, it may vary up to 24- 48 hrs.
Demat Account opening charges
Below you can check account opening charges for different brokers. For beginners, Upstox is a good option as it doesn’t charge you anything and recently upstox completed its 1 million active users.
As a reason, upstox shares an offer for a new customer, that is if you join upstox before 31 august then there will be no brokerage charge for 30 days.
Means, you can open an account for free and you don’t have to pay a single brokerage for 30 days.
|Demat Account opening charges||Charges|
If you need more information on the trading account comment below.