Every process has certain steps and prerequisites, and investing in the securities market is no different. Over the past few decades, participating in the country’s securities market has become easier, safer and more accessible. One of the first steps to start investing in the market is demat account opening. You can open a free demat account and trading account online, add funds to the latter, choose the assets to invest in, and start investing. In this article, we shall discuss seven easy steps to follow to open a free demat account online.
Why You Should Open a Demat Account
Let us firstly discuss why you need a demat account. In order to safely hold market-linked assets in a dematerialised form, you need a demat account. Such an account is linked to a trading account for the seamless transfer of assets post buy and sell orders. A demat account is an essential cog in the trading mechanism, and instrumental to the safekeeping of your market-linked securities.
Seven Easy Steps to Open a Free Demat Account Online
Here are the steps you can follow to open a free demat account online.
- Gain clarity on your demat account requirements: Before you begin the process to open a free demat account, you must gain clarity on your investment requirements. Different demat accounts offer varying ranges of features. Therefore, having clarity on your requirements from a demat account can be helpful in the selection of an appropriate account type for you.
- Determine which depository participant you wish to open a demat account with: As the next step, you must select a depository participant or a stock broker with substantial credibility in the market. You can either carry out research to select a DP or visit the official website of NSDL or CDSL to choose one.
- Study the features and cost of various types of demat accounts: You must peruse, analyse, and compare the features and benefits of various demat account offerings. Furthermore, you must also check their respective cost structures. For instance, a Full Service Demat Account entails a wider range of benefits and a higher cost than a Basic Services Demat Account.
- Select a demat account offering feasible for you: After carefully evaluating various demat account offerings, you must choose one that aligns with your investment requirements and budget for a demat account. If you opt for a free demat account, you may get limited features yet also save on the overall cost of investment.
- Fill and submit the online demat account opening form: Once you have determined which demat account to opt for, you must proceed with online demat account opening. In order to do so, you must visit the official website of the selected depository participant or stock broker, locate the online demat account opening form, and fill the required particulars.
- Upload copies of the required supporting documents: After filling the online demat account opening form, you must upload digital copies of the requisite KYC documents, including your PAN card, a valid identity proof, address proof, income proof, and latest passport size photographs.
- Complete Video KYC for In-person Verification: As the last step for demat account opening, you must complete the process of video KYC. For this step, you must keep your original PAN card and the other required documents handy.
The Bottomline
The online demat account opening process is seamless, time-efficient, and cost-effective. Once you have opened your demat account and trading account, you can start investing in the assets of your choosing. It is critical to choose a demat account offering that fits your investment requirements.
Read Also: How to Save Brokerage on Your Trading?
