Introduction
You can open your demat and trading account on the website of the stock brokerage house you choose, you can go to the homepage of their website and you will see an option to create a demat and trading account. Some brokerages also offer a 2 in 1 account.
Since it is very crucial to know where to open your Demat & Trading account, it is very important to choose the right stock broker. As to, where to open your account you can choose to open an demat and trading account online or through the offline process which is rather lengthy, we discuss where to open your demat and trading account.
You should carry out your own research & Get a general idea about the stockbroker, their account opening charges, facilities offered, trading apps/websites etc.
As soon as you follow the process you will be able to open demat and trading account at a stock broker.
Table of Contents
1. Introduction
2. Role of Demat and Trading Account
3. What is a Demat and Trading Account?
4. There are two ways to start your trading journey
5. Steps to Opening Online Demat and Trading Account At UPSTOX
6. Conclusion
Role of Demat and Trading Account
To trade in stock markets, you require a trading account and while trading a Demat Account holds your shares in an electronic format. Post opening, you must begin your trading journey with a thorough understanding of the market. When trading in the stock market both the demat account and the trading play a crucial role. You require a trading account to process the transaction when you buy the stocks of any company. The bought shares are credited to your Demat account and the funds are debited from the trading account. In the similar way, when you sell your stocks, they are debited from your Demat account. In your trading account the funds credited will show.
What is a Demat and Trading Account?
Demat account is used for holding investors shares and securities. It has made the use of holding and trading physical share certificates ineffective. Demat account full form is Dematerialised Account.
A Dematerialised Account is used to keep shares and securities in electronic form which is also known as dematerialised format. Investors can also hold their bonds, ETF and mutual funds.
According to SEBI all shares and bonds need to be dematerialised so that traders or investors can carry out any transaction of shares in any stock exchange from 31st March 2019.
A trading account is used to buy/sell shares in stock markets. Once you have a Demat Account, you need a Trading Account which has a unique trading number used to trade in shares. Once you start trading in share markets, you need three accounts: Bank/Demat/Trading Account.
Trading Account acts as a link between your bank account and Demat account, allowing you to trade in stock markets. Having an online trading account helps you to secure access to multiple stock markets.Most generally, trading account refers to the primary account of a day trader. Day traders investors tend to buy and sell assets frequently, often within the same trading session, and their accounts are subject to special regulation as a result.
There are two ways to start your trading journey
If you want to invest your savings into securities like shares, ETFs or mutual funds you need to have a dematerialised account or generally called demat account. A demat account is much more convenient, cost effective, quick and secure. To open a Demat Account you need to register yourself with any brokerage firm.
The 2 ways of starting with your demat and trading account are:
1. Online account opening method which is offered by almost all mainstream stock brokerage firms.
2. The other way is the traditional method by submitting physical forms.
The first step which involves choosing which method you use to open your account is crucial but another important factor you should consider is choosing the right broker that fits your trading requirements and financial goals needs.
As some brokers charge fees for various services also make sure you know of all the fees and any additional charges which are charged by the broker related to account opening procedure. Gain information on the user interface of the platform, brokerage fees/charges and its customer service.
In today’s world where wide digitalisation has spread and made the completion of every complicated task which had to be done physically or manually made convenient through digitally introduced online procedures. This also includes opening a dematerialised account online and doing trading online, which gives us little to no reason to be filling physical forms because almost all your data can be stored digitally now.
You can choose any brokerage which fulfills your requirement and offers online processing of information and online creation of demat account.This blog post will guide you on opening demat and trading account at Upstox, both online and offline process are explained so you can gain clarity on where to open your demat and trading account.
Steps to Opening Online Demat and Trading Account At UPSTOX
Now the clients can go on the website of the brokerage and sign up for a demat account opening and do the entire process of registration online.
You will most essentially need to link your Aadhaar card with your mobile number for this process.
1. Go to the website of Upstox.
2. You will find an online demat account opening page.
3. You need to provide your mobile number and you will receive a OTP on your mobile number.
4. Now provide your email-id in.
5. Now provide your personal details like your trading experience, your annual income and your occupation. After providing the details click on continue. After that tell gender and marital status.
6. Provide your pan card details and put your signature, click on continue. Confirm your address.
7. Now provide your selfie for verification.
8. Now provide your bank details. You can use UPI or you can enter manually.
9. Now provide your income proof to continue for Futures and Options Trading. You can provide this afterwards as well. Click on continue.
10. Now add a Nominee to your account. You can do this later as well.
11. Now the final step starts. Here you need to provide your aadhaar number and click on the e-sign option.
12. Now provide your aadhaar card number and enter the OTP sent to your Aadhaar registered mobile number.
13. Now your application is under verification.
Conclusion
You can open demat and trading account at any stock broker. A demat account holds the securities digitally such as bonds, shares, mutual funds, etc., while a trading account is used to place orders in the share market. You can choose any stock broker ,which best meets your requirements.