What is Demat Account?  & How to Open Demat Account?

Have you ever wondered what is a Demat account? And how does it work? 

A Demat account helps investors to hold shares and securities in an electronic format. This is also known as dematerialised account. Just as people keep their money in a bank account, similarly people keep their shares in a demat account. 

It helps to keep proper track of all the investments in shares, exchange-traded funds, bonds, and mutual funds in one place.

In earlier times buying shares involved a lot of paperwork. But now this whole process has become electronic, so when you buy shares they are transferred to your demat account and stored in electronic form. It ensures investor safety and confidence for a long period

If you are searching for Best Demat and Trading Account in India, then you are at right place. This article will help you choose the best Demat and Trading Account.

India and America

 In a developed country like America, more than 50% of the population invests in the stock market, whereas in India, only 2% invest in the stock market. Just imagine that if even half of India’s population starts investing in the stock market, then it is unimaginable to estimate from where this country will reach.

Now the people of India are also slowly becoming aware of stock market, in the last 1 year, more than 2.3 Crore Demat accounts have been opened in India

Demat Account: First Step into the Stock Market

It is mandatory to have a Demat Account in order to purchase shares and store them safely.  Opening a Demat Account is the first step to purchasing stocks. You can open a Demat account for free by clicking here.

By opening a Demat Account, you have the advantage of being able to learn the stock market live, if you are completely new, then you should open a Demat Account and learn the stock market basics for at least 6 months, then you can invest if you wish. You can start investing in the stock market with as little as 100 rupees.

In order to do so, you need to have a demat account, which you can open for free with the best stock broker in India. Click Here

Are you Confused about Demat and Trading Account? So let’s now learn about Trading Account. When you buy or sell a share, your money has to be transferred from the bank account to your trading account. And then from the Trading Account itself, you can do any transaction (BUY / SELL) in the stock market.

What is the difference between Demat and Trading Account?

Let us understand it with an example. You buy shares of XYZ Company for Rs. 1000 (100 per share.) So when you buy the shares, your trading account gets 1000 Debit and when you sell these shares, the same amount is credited to your trading account.

 

The shares purchased by you get deposited in your Demat Account and when you sell the shares, it gets debited from the Demat Account. Trading account acts as an intermediary between the bank account and the demat account.

When you open a Demat account online, your trading account is also opened at the same time. You get a user ID and password, using which you can start investing through your trading account.

Demat account only holds your shares in electronic format whereas for buying or selling transactions, you need a trading account.

Stock market for investment

The stock market offers a number of Wealth Creation opportunities. Anyone above the age of 18, whatever your profession or status, investing should be an important part of your life

You must be thinking that what is the need to invest? But there may be unexpected expenses in future like medical emergency, sudden loss or post-retirement expenses. If you don’t have a backup plan, how are you going to deal with it all? So you should make proper financial plan according to your needs and goals. Once you have a plan, what’s next? To start your investment in share market you need Demat, Trading and Bank Account.

Now the question comes that where and how to open demat account ?

Demat account opening is quite simple, nowadays you can open it online. To open it, first you have to select your Depository Participant.

I recommend to go with Upstox, Upstox is famous stock broking company of Mumbai having more than 90 lakhs+ active clients. It is funded by Ratan Tata and is the second largest stock broking company in India. And where a person like Ratan Tata is trusted, a customer can expect 100% satisfaction.

Presently Upstox has more than 90 Lakhs+ active customers and it is increasing day by day. Upstox provides trading facilities in various segments like Equity, Futures and Options, Commodities Currency. Demat account opening in Upstox is very easy and online paperless process which hardly takes 10 minutes and the best part is that it is completely free.

In Upstox, you can trade and invest through your trading account from anywhere. You can use desktop, Android, or iOS applications to make your trades and investments easier.

Benefits of opening a Demat account with Upstox

  • ✅ Free Demat & Trading Account
  • ✅ ₹0 Brokerage on Mutual Funds and IPOs*
  • ✅ ₹0* AMC Charges* Demat Account Maintenance Charges!
  • ✅ Trust of 90 lakh+ investors
  • ✅ One stop solution to invest in Stocks, Mutual Funds, Gold, Bonds, IPOs etc.

Steps to Open Demat Account

  • ✅ First Download Upstox App Click Here
  • ✅ Provide your email id and mobile number
  • ✅ Provide PAN Number (Mandatory)
  • ✅ Provide other KYC details
  • ✅ Upload KYC Documents
  • ✅ Sign it with Aadhaar OTP and you are done

As per the instructions of the government institution SEBI (Securities and Exchange Board of India), everyone who wants to open a demat account is required to provide KYC details like Aadhaar, PAN, active bank account, signature photo etc.

If you face any problem in the application, then our team will call you and solve your problem and open your account.

FAQS 

Who can open Demat Account?

The following persons are eligible to open a Demat account in India.

  • Resident individuals 
  • Non-resident individuals
  • Hindu Undivided Families (HUFs)
  • Partnership firms
  • Companies

What is required to work in the stock market?

To work in the stock market, it is very important to have a Demat account according to the rules of SEBI.

What exactly is a Demat Account?

To buy and hold stocks in the stock market, you need a demat account, just like you need a savings account at a bank to keep your funds safe.

How to select a Demat Account?

Demat account can be selected based on the trustworthiness of the brokerage firm, minimum brokerage charges and annual maintenance charges.

What is required to open Demat Account?

  • Choose Depositary Participant First (Like Upstox)
  • Submit & verify PAN and Aadhaar
  • Verify your bank & KYC details
  • eSign your application with Adhaar OTP

What is a Trading Account?

Trading account acts as a bridge between demat account and bank account which allows us to trade in the market & place Orders. Trading account gets automatically opened while opening demat account.

What else can be kept with shares in Demat Account?

One can keep mutual funds, ETFs, equity shares, bonds etc., which is the safest place.

Is Upstox safe?

Yes, Upstox is the most secure platform.
Registered member of SEBI, BSE, NSE, MCX, and CDSL