How to open Demat account in Upstox

Why do you need a Demat account for trading?

Nowadays people are taking much interest in trading. It’s a kind of resource by which they can earn extra money and fulfill their dreams. Although, the share market contains risk as the market goes up and down and only the trading experts can predict them based on their knowledge and analytical skills. If you also want to try your luck in trading firstly you need to follow a Demat account process.

Importance of DEMAT Account

You must have heard this name but if you don’t know what it is. Here is the answer.

  • The DEMAT account is a kind of electronic trading card that holds the shares, stocks, or securities of yours.
  • DEMAT account card is very safe, convenient, and easily accessible.
  • With this, you can practice trading, monitor your activity, buy and sell stocks in a flexible manner.

To make this simpler, here we are giving you an example:

We all have a bank account to make the transaction process simpler, the bank provides us with a checkbook and ATM card. Using this card, you can access your account and by entering the PIN you can make transactions as well.

We can’t travel with a lot of money in cash format but we can carry this ATM easily anywhere, it fits in our pockets, whenever we want to purchase anything we insert the card and enter the PIN the transaction successfully made in a second.

The same is with the DEMAT account. Another thing that you can manage with this DEMAT account is handling mutual funds, bonds, government securities entities, exchange-traded funds. All these things will be done in digital ways comfortably.

Types of DEMAT account

DEMAT account is categorized in three ways:

  • Indian citizens access the regular Demat account.
  • Repatriable Demat account is accessed by the non-resident Indians and to those who are holding an NRE bank account. (funds can be transferred abroad)
  • No-repatriable also allows the trading to non-resident Indians in this case no funds transferable abroad but should be a holder of an NRO bank account.

Want to open a DEMAT Account?

If you want to try your luck in trading, you should hold a DEMAT account that will make your trading experience comfortable and convenient.

  • Document needed DEMAT account open online

Before proceeding to make a DEMAT account you should set all the required documents that will be needed for this DEMAT account open online process.

  1. ADHAR Card
  2. PAN Card
  3. Latest bank statement and canceled cheque
  4. Mobile Number linked with Aadhar card and other accounts

To know more bout the Demat account process just follow us:

The trading account opening process has turned out into a paperless process, everything will be done online on the digital platform.

  • Selection of Broker

To deal with this stock trading process you will need to take a wise decision of a broker(stock exchange member) that will pass the order in this trading/ stock buying and selling journey from the investor’s side. Many stockbrokers are available on low fee charges and flat discounts.

Broker and DP have different roles, the broker makes the execution of orders and the Depository Participant is someone that holds the shares/ stocks.

  • DEMAT account Signup

Once you have selected the broker to maintain the liquidity of the stock market and have your Depository Participant the next thing is to

  1. visit the DEMAT account online interface window.
  2. After the visit, you may Fill in all the details on the signup form.
  3. Once the form is submitted fill in the KYC details.
  4. Upload the digitally scanned copies of documents.
  5. To validate the things enter your AADHAAR card details, you will receive a confirmation OTP number.

Once you enter the OTP, the account will be validated and you can use it for trading activity.

It is much easier to traditional the DEMAT account process.

DEMAT account charges/ DEMAT account online free

While you are opening a DEMAT account you have to spend the amount. This will charge in three manners for three different purposes.

  1. First, while you open a DEMAT account.
  2. Second, to maintain the annual account activity(Annual maintenance fee around Rs.300- Rs. 800)
  3. Third, that is transaction fees.

These charges may vary on the selection of brokers and their services.

DEMAT account accessibility: How it works?

You have understood the process of how the DEMAT account opens and what things are needed to open this account. Now it’s time to know how this manages your trading activities.

The Demat account is accessible by the other two accounts are a trading account and a bank account. These two accounts enhanced the properties of the DEMAT account as the DEMAT basically is proposed to maintain and hold the mutual funds, stocks, shares, bonds, equities, and other securities.

  • The trading account is responsible to hold and maintain the flow of cash and fund.
  • Using the bank account that is linked with your trading and DEMAT account, You can make transactions of cash to buy the shares.
  • With the complementary properties of the two accounts, the DEMAT account gives you a trouble-free and limitless trading experience for all that are beginners or experienced and involved for a long time.

While you are going to begin your trading activity, you have to purchase or sell shares, firstly you may have to log in to your trading account. When the trading account receives this request, This request will be also notified by the depository participants, he will send this request with the required details to the respected stock exchange.

If you made a request to buy the stocks, the stock exchange will locate the sellers according to your interest and the quantity of the shares and stocks. The clearance houses will receive an order to make the debit activity for the shares from the sellers’ side DEMAT account and the quantity of the shares will be credited to the DEMAT account of buyers.

Why did the DEMAT account come into existence?

As we have fear of losing the money in cash formats so as implies on the trading entities of share/ stocks and mutual funds. To maintain the securities and shares in a secured and efficient way DEMAT accounts are introduced in the trading market or field.

Advantage of DEMAT account:

If you have a DEMAT account then you can access the following things.

  • Now there is no risk of losing the shares and bonds. The process and account are activated online, sp you can trade from anywhere in the world. You can make an internet connection setup with a PC or laptop to do the trading activity.
  • With a DEMAT account, you get the free accessibility and holding ability to manage the mutual funds, equity shares, bonds, exchange-traded funds. Only one account and you can manage distinct alternatives.
  • You have the ability to monitor all the entities in just one click of a mouse from any corner of the house.
  • The traditional trading method is very time-consuming and nowadays nobody has time and nobody wants to wait. A DEMAT account saves a lot of time and money as you can manage the transaction of shares and securities in no time and with no paper documentation.
  • In the case of any kind of increment, bonus increments, Dividends, interests, refunds, or other trading actions you will see the instant activation in your DEMAT account.

Terms and conditions Demat account process

If you are setting to Demat account and online trading then please ensure that all the documents details photograph(2 -passport size), PAN number, Date of Birth, Bank statement, passbook, canceled cheque with the IFSC and MICR, income validation 6 months of bank transaction you have provided here should be correct and verified before the due date for the DEMAT account process.

The bank account and the IFSC no. should be correct as it will be associated with the DEMAT account.

To avoid any type of convenience or fraud activity at the time of (Demat account online opening) these terms and conditions should be fulfilled and verified well for the DEMAT account process.

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