Know the Demat Account Opening Procedure through a Broker

Demat Account Opening Procedure | Image Resource: indianfolk.com

To trade online a demat and trading account is required. The demat account is opened in the depository and the trading account is held by the online broker. To open the account you can approach an online broker who offers depository services.

To open the account you have to fill an account opening form. The form can be couriered to you by the broker. You can also request for the form online and get it in the email. Most of the brokers provide the facility to print the form form the online portal. You have to pay a fee if the form is couriered to you by the broker.

The documents to be submitted along with the form are a copy of PAN card, address proof, a coloured passport sized photograph, a cancelled cheque and last six months bank statement. For the address proof you can give any of the following documents. Drivers license, passport, ration card, latest telephone bill, latest electricity bill, latest bank statement or aadhar card. 

You also have to pay the charges required to open the account. For example to open an equity and currency account you may have to pay RS. 400 to the broker and to open and commodity account at the exchange you may have to pay Rs. 200.

The exchange requires the brokers to do an in-person verification for which you have to be present. If all your form are right according to the KYC norms then the account is available to you within three working days of receiving the account opening form. This is the demat account opening procedure.

What the online broker offers?

Once you get an demat and trading account you can trade online. The online broker offers the following: 

• The broker offer an trading platform to trade online. The platform is user friendly. There is a single interface for different exchanges. Some of the brokers offer trader, mobile and browse based platforms to trade online.
• The broker offers online trading tools like charts, analysis, reports and quotes to help you trade online. Some of the brokers also offer online trading mobile apps.
• The broker offers support all the time to the clients through phone, email and chat. The support team answers all your queries anytime.
• The broker may allow fund transfer with the banks it has tied up with.
• The broker may offer set prices alerts to the clients.