How To Open Best Demat Account For Trading

Demat account is the first step towards your creating an investment portfolio in the stock market. But, do you know what exactly is a demat account and how to open demat account? Probably not! Well, don't worry as you are not the only one with these questions. Most people who are new to online trading or are planning to enter the stock market face these questions. The best demat account provider - Angel Broking is here to answer your questions and doubts related to demat accounts in India.

What is a demat account?

With integration of technology with stock market, shares and securities can be held in dematerialized form electronically. The account used to hold these dematerialized shares and securities of a client is termed as the demat account. Until a decade back, investors were provided with physical certificates that they had to hold in their possession. With demat account, physical storage of share certificates has been eliminated. Now, every share market investor has to open a demat account in India to enable electronic trade and settlement for shares and securities. Demat account has reduced the risks involved with handling of paper-based shares and securities.

How to open Demat Account?

To open a demat account, the investor needs to register himself with an investment broker or stock broker. The purpose of demat account is to enable transaction of shares in the electronic form. Opening a demat account is basically a two-step process, the steps include -

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  • Approach a Depository Participant (DP) and fill in the account-opening booklet provided by them. You should only approach a DP that has been approved by the CDSL and the NSDL. The list of approved DPs can be found on websites of CDSL and NSDL. You will surely ask which is the best online trading account in India? Well, Angel Broking tops the list of online trading accounts in India, mainly due to their customer oriented services.
  • Once you register with a DP for demat account, you need to submit documents for verification. It includes proof of identity, address proof, copies of photograph and more. You can consult your DP for a list of documents that are considered valid as identity and address proof. The DP will also perform an in-person verification along with verification of original documents. Once verification is done, you will receive a DP Id and account number. This account number should be quoted in all further transactions performed on the demat account. You will also receive a login password and transaction password for online access to demat account. You can buy and sell shares from the demat account electronically. Your DP will also send an account report regularly to give a summary of transactions and holdings in the account.
  • Most online trading sites do not charge any fee for opening demat account, but you need to pay an annual maintenance fee and other charges. Clients also need to pay transaction fee for buying or selling shares through demat account.
  • If you already have shares in the paper form, you need to fill a Demat Request Form to convert the shares to electronic form. There will be a separate DRM for each share certificate held by you. You can check your account to reflect your demat shares after the forms are approved.

Angel Broking has helped us build our portfolio of investments and we recommend Angel Broking to every person planning to invest in stock market. Contact Angel Broking for details.