How to Open a Demat and Trading Account in India
Introduction
To invest in the stock market, the first step is opening a Demat and Trading Account. Just like you need a bank account to save money, you need these accounts to buy or sell stocks.
What You'll Learn in This Chapter
Demat vs Trading Account
Clear distinction between these two essential accounts for stock market investing.
Account Opening Process
Step-by-step guide to setting up your investment accounts quickly.
Required Documents
Complete list of documents needed for verification.
Top Brokers in India
Trusted platforms to open your investment accounts with.
What is a Demat Account?
A Demat (Dematerialized) Account stores your shares in electronic form. Think of it like a digital locker for your stocks where all your investments are safely stored.
What is a Trading Account?
A Trading Account allows you to place buy and sell orders in the stock market. It connects your Demat Account to the stock exchange and acts as your gateway to trading.
Important: You need both Demat and Trading accounts to start investing in the stock market.
Step-by-Step: How to Open a Demat & Trading Account
Choose a Broker
Select from popular brokers like Zerodha, Upstox, Groww, Angel One, etc. based on your needs.
Submit Documents Online
- PAN Card
- Aadhaar Card
- Bank Proof (passbook or statement)
- Passport-size photo
In-Person Verification (IPV)
Complete verification via webcam or through the broker's mobile app.
E-sign using Aadhaar OTP
Digitally sign the application form using your Aadhaar-linked mobile number.
Account Activation
Your account will be ready within 24-48 hours after verification.
Best Stock Brokers in India (2025)
| Broker | Features | Charges |
|---|---|---|
| Zerodha | Popular, fast platform | ₹200 account opening |
| Upstox | Easy UI, offers | Free account |
| Groww | App-based investing | No AMC |
| Angel One | Full-service broker | Free account, extra tools |
Documents Required for Opening Account
PAN Card
Mandatory identity proof for all financial transactions in India.
Aadhaar Card
Primary document for address verification and KYC.
Bank Proof
For linking your bank account to your trading account.
Photo
Passport-size photograph for KYC requirements.
Tips Before You Open an Account
Use only SEBI-registered brokers for safety
Link your primary bank account for seamless transactions
Download the broker app for easy access to your portfolio
Bonus Tip:
Once your account is active, you can:
- Start investing in stocks, mutual funds, ETFs
- Earn dividends from your investments
- Track your portfolio in real time
Common Mistakes to Avoid
Using fake documents
Always provide genuine documents to avoid legal issues.
Ignoring brokerage charges
Understand all fees before opening an account.
Not completing IPV
Account won't be activated without verification.
Tomorrow's Topic:
How Does the Stock Market Work? | Buyers, Sellers, and Exchanges