Whenever we start trading in the share market, you need a demat account for trading or investing. So in today’s post, we will give information about Demat account only, what is Demat account. How to open it and what documents should we have for this. In today’s post, we will give all the information about which broker to open an account with, etc. What is Demat account?
what is demat
The way we have a savings or current account in any bank. In the same way, there is a Demat account to invest your money in the stock market. Whenever we buy a share through our broker, we hold it for more than a day. So all those shares that we have bought are kept in the demat account with the broker.
The full name of Demat is “Dematerialize”, that is,
the process of converting shares into physical form is called dematerialization.
As you would know that trading of shares is done digitally. So if we say Demat account in other words, then the facility of keeping the shares digitally i.e. electronically is called Demat account.
Documents required for opening a demat account
The way you open your account in any bank. So for that you need some documents. If you want to open a demat account for share trading in the financial market. So you would need some important documents which we must have at the time of opening the demat account which is given below.
- your aadhar card
- pan card.
- Bank Account Passbook.
- Your passport size photograph.
- A canceled check of whatever account number you have given.
- At least 6 months account statement.
- Scanned image of your signature.
How to open Demat account
If you want to open your Demat account, then you can open it mainly in two ways. First you open your demat account online. Another way is to open your demat account offline. Below both the process is explained separately, you can follow it and learn both the methods.
To open a demat account online, first of all choose your broker. In which you want to open your demat account.
And by going to their official website, do your registration, in which your name is entered along with your mobile number and email ID. After the registration is done, you will get a call from the broker. And you will be given all the instructions to open online demat account.
Or you can also open your account by visiting the broker’s website or app and clicking on the option of New Account opne, filling the form and uploading all the requested documents.
To open a demat account offline, you have to visit the nearest share broker in your city or district. And along with all the necessary documents will also have to be taken.
When you go there, you will get an account opening form, which you have to fill correctly. All the requested documents have to be attached and submitted to the visiting broker. And your account will be opened by the broker.
Choose the Right Broker for Demat Account
As you would know that there are many stock brokers in the Indian stock market. And when it comes to opening a demat account, we have only one question. With which broker should I open my demat account for trading?
By the way, all the stock borers are good, but if you are of any broker then it is considered good. When he is a fully regulated broker and gives us whatever facilities we want. So I am telling some points below, you must see all those points while choosing a broker.
- First of all, you have to see that your broker is Savvy and certified by all the exchanges.
- Your broker should have good charting tools.
- The support team of the broker should be good.
- Your broker charges less brokerage
- You should open your account only after checking the broker’s branch must be in your city.
In how many days does the demat account open?
When you complete the process to open your account. So your demat account gets opened in 2 to 3 working days. And you get your login and password.
Sometimes it takes even 6 to 7 working days, but it doesn’t take much, your demat account gets ready for trading in 6 to 7 working days.
Some important things while opening a demat account
Whenever you go to open your Demat account, you should keep a few things in mind. So that your demat can be opened easily and you do not face any kind of problem.
- The first point is that your mobile number should be your own.
- And your Aadhaar number should be linked in your mobile number.
- While doing power of attorney, nominate yourself only.
- You must have an email ID
- While filling the form, you have to fill all your information correctly etc.
In this article you learned what is Demate and Demate meaning. We hope this information will prove useful for you.