Trading and Investing

Opening a Demat Account

Are you new to the world of stocks?
Fascinated by the ever changing numbers and how people make a living out of it?
Want to get a first-hand experience trading and investing in stocks?

The first and foremost step to trading in real is getting a Demat Account.



What is a DEMAT ACCOUNT?
Demat account stands for "Dematerialised Account". Earlier shares were held on paper but after dematerializsation they are held in the Demat account.

Can I trade without a DEMAT ACCOUNT?
No, you can not trade or invest in stocks without a DEMAT Account. 

Whom can I open a DEMAT Account with?
You can open a demat account with any stock broker and even with some banks who provide these services. They are known as Depository Participants (DP).

What are the requirements to open a DEMAT Account?
To open a demat account, you need the following documents:
  1. PAN CARD
  2. ADDRESS PROOF (Driving Licence, Passport, Voter ID card, Electricity/telephone bill)
  3. BANK STATEMENT (With full address, for the past 1-6 months depending on the broker)
  4. CHEQUE BOOK (You will need a cancelled cheque, and also the registration charges paid to the broker)
  5. A BANK ACCOUNT
  6. AGE MUST BE 18+
  7. PASSPORT SIZE PHOTOGRAPHS
Can a minor have a DEMAT Account in his name?
A minor can't have a Demat account in his name but he can have a joint account with his guardian/parents. On attaining the age of 18, either a new demat account can be opened or the existing one can be continued after completing all formalities and submitting all required documents.

STEPS:
  1. Ensure there are funds in your bank account.
  2. Approach a DP ( A broker or your banker itself)
  3. Collect the account opening form, fill up all details, attach your photographs and proof of address and identification.
  4. Pay the required amount for account opening as well as Annual Maintenance Charges (AMC)
  5. Collect your KYC form copies, any other letter the DP gives.
  6. Collect your ID and Password for the trading platform, phone number of the broker for CALL-n-TRADE.

KEEP IN MIND:
At the time of opening your Demat account make sure you enquire your broker about the brokerage charges, Annual Maintenance Charges, any extra costs associated with the CALL-n-TRADE facility or the trading software.
Also, do browse the internet for some information about the broker and find out user's experience with the broker. You might also want to negotiate the margin your broker provides.

To open your demat account with us, click here.

Read other helpful articles:
1. How to place a STOP LOSS?
2. What is an ETF - Part 1
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