How to Open Demat Account Online in 2020 & What it is?



That was the 90’s, where opening a trading account 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 that How to open Demat Account with the Best Stock Brokers.

Stock Market Investing became the best investment option in India after the dematerialization and rising technologies day by day. Stock Market 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 Demat Account with ease even sitting at his/her home. Because technology has gone through 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 for Stock Market Investing.

What is 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 bank account holds your money and has a record of your transactions, the Demat hold your Shares & Securities and keep 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 Bank Account or Saving Account. Here also we need some documents for the Demat Account Opening.

Here is the list of documents required to Open Demat Account:

  • Proof of Identity (POI) (Aadhar Card, Driving license, Voter ID)
  • Proof of Address (POA) (Ration Card, Passport)
  • Proof of Income (Copy of ITR Acknowledgement for trading in F&O)
  • Proof of Bank Account (Bank Account Statement, Cancelled cheque)
  • PAN Card
  • 1 to 4 passport size photographs

How to Open Demat Account

If you have the aforesaid documents and ready to invest in Share Market that you should follow the below-mentioned steps for Demat Account Opening.

#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 the broker you need to visit the nearby Branch the Stock Broker to Open a Demat Account. You should carry your all required documents for Demat Account Opening. The Broker representative will ask you to fill some forms and deposit copies of your documents to start the Demat Account Open Procedure. It may take up to 7 days to complete all the procedures of Demat Account Open.

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 How Open Demat Account form. A company representative will contact you soon and visit to your address and assist in your problems with how Demat account open.

#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.

Conclusion

I hope you have a clear idea about What is Demat Account and How to Open Demat Account. 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 Stock Market then you should read about How share market works, How to Start Investing, Stock Market Tips, Investing Tips and Best Investment Options.

Happy Investing! 👍

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