What Is a Demat Account : How to Open a Demat Account with Zerodha ?

Demat account (dematerialized account) is an online trading account for holding shares and securities in an electronic format. In other words all the transactions done are performed online without exchange of share certificates. Nowadays it has become very easy to open demat accounts with the evolution of discount brokers. They have made it possible to open your demat account just by sitting at your home.

Basically there are two methods how open demat account. The first one being the traditional way of signing forms and presenting Xerox copies of ID proofs and after getting approval from the broking firm account is created. The second way is filling up the details online. All you need to do is fill in the required information and upload some photos of your required documents. Once the information gets verified the person can get access to his demat account.

The details and documents required for opening a demat account are :-

· EMAIL ID AND PHONE NUMBER

· PAN CARD

· AADHAR CARD

· BANK STATEMENT OR CANCELLED BLANK CHEQUE

· PHOTO OF SIGNATURE

If a person wants to trade in futures and options submitting a copy of an income statement is mandatory.

Nowadays in most all the discount broking firms opening Demat account online is free or having charges upto 300 Rs. maximum. Other charges that are levied on use of Demat accounts are account maintenance charges. They are charged monthly, quarterly or yearly by all the broking firms for maintenance of your demat accounts.

Once you submit all the documents, they are verified by the broking firms. After verification you will receive your customer ID and password and you are ready to carry on transactions from that DEMAT account.