Know How to Open a Demat Account for Share Trading?

A Demat account has become an obligatory tool in the stock market today. From trading shares in real-time to simplifying corporate actions, it enhances investors’ trading and investing experience. A Demat account also makes managing a portfolio and holdings easier.

Prior to digitizing Demat accounts, investors traded with physical share certificates in India. This process was exposed to loss, destruction, or theft. However, after the introduction of demat accounts, trading and transferring securities became safer and faster.

Investors and traders can open a Demat account online with simple steps. This is set and established by the Securities and Exchange Board of India (SEBI). This is why investors need to know how to open a demat account online in India.

Understanding Demat Accounts

SEBI introduced the Dematerialisation process in 1996. The process involves converting physical share certificates into electronic balances. A Demat or dematerialized account is an online repository that stores the shares digitally. It works the same as a savings bank account, but instead of currency, it holds different securities digitally.

 

Charges Associated with Demat Account

While a demat account is essential and mandatory, its accompanying charges can not be ignored. In addition to brokerage charges, there are diverse charges investors must pay. Consider the following demat account charges when opening a Demat account:

• Annual Maintenance Charges: This is a recurring fee charged by the depository participant to maintain the demat account of the holder.
• Account Opening Fees: It is a one-time charge you pay when you open a demat account for the first time.
• Dematerialization Charge: When your physical share certificate is converted into digital form, a DP requires you to pay a dematerialization charge.
• Dematerialization Charge: When your physical share certificate is converted into digital form, a DP requires you to pay a dematerialization charge. 
• DP Charges: It is a fee charged when ISIN is debited from a demat account. ISIN is a unique identification number for derivatives and securities markets. 
• Transaction Fees: In addition to DP costs, brokers also impose charges for mutual fund unit conversion, dematerialization, and rematerialization.

 

Important Points to Act Upon When Opening Demat Account

Though opening a demat account follows a simple and quick process, you must consider some important points before initiating it.

• Consider All the Charges: Check all the fees before you submit your demat account opening form. It is better to know all the costs because it promotes transparency and guarantees that you choose the best Demat account.
• Linking Demat Account with Trading Account: A Demat account is only used to store securities. You cannot trade with it in the stock market. This is why it is a must to link your demat account with the trading account.
• Decide Your Nominee: Ensure that you have a nominee for your Demat account. Doing so will help you transfer shares to your family members easily. 
• Enter correct information: Always check the entered information twice. Rechecking your Demat account opening form leaves no room for errors and your form will not get rejected thereby.

 

Documents Required for Opening Demat Account Online

Before you decide to open a demat account online, ensure you submit your documents along with the demat account opening form. The list of documents required to open a Demat account is as follows:

• PAN Card
• Your recent passport-size photograph
• A photocopy of your signature
• Proof of Identity (driving license, Aadhar card, PAN card, Voter ID card)
• Bank statement or photocopy of your passbook. It will serve as proof of your bank account.
• Canceled Cheque 
• Your payslip or ITR, if interested in the derivative market or currency market
• Proof of Address such as utility or electricity bill or Voter ID card

 

How To Open a Demat Account Online with Almondz Trade?

Almondz Trade follows a simpler, smarter, and swifter for opening a demat account. The whole process is digitized and includes the following steps:

1. Visit the Almondz Trade Website: Go to the official website of Almondz Trade to open a Demat account.
2. Provide Mobile Number: Besides keeping all the documents ready, an online Demat account opening process requires providing a mobile number.
3. Sign Up at Almondz: Sign up at Almondz Trade by filling up a demat account opening form.
4. Provide PAN Card: Provide your basic personal details such as name, contact number, email address, PAN card details, and others.
5. Add Your Bank Details: Next, add your bank details, such as the account number and IFSC code.
6. Complete the KYC: The next step in opening a Demat account is completing the KYC, which follows a completely digital process.
7. Start Trading: Finally, link your Demat account to your trading account to start investing in the stock market.

Conclusion

Knowing how to open a Demat account is the most important step if you want to invest in the stock market. During the Demat opening process, ensure you add the correct bank details because it will be used to credit any amount like dividends and interests.

Almondz Trade makes the process of Demat account opening both free and easier. So, join Almondz today and ease your investment and trading journey.