The very first thing you need to enter the stock market is a Demat Account to store stocks that you purchase and a Trading account to trade that means to buy and sell in Stock market. The full process of account opening and document verification will be done online, you just need a mobile phone with internet connection. In this article we gives an overview about how to open a demat account online with any brokers in India.
Table of Contents
- How to choose a stock broker in India – Top brokers in India
- Documents required to open a demat account online
- Steps to open demat account online
- Step 1 – download app or visit website
- Step 2 – mobile number verification
- Step 3 – Name and Email verification
- Step 4 – PAN & Date of Birth
- Step 5 – Pay account opening charge
- Step 6 – DigiLocker verification for Zerodha
- Step 7 – Personal details
- Step 8 – Bank details
- Step 9 – IPV Selfie upload
- Step 10 – Identity card upload
- Step 11 – Signature upload
- Step 12 – Add nominee details
- Step 13 – Digitally e-Sign through NSDL
- Step 14 – First time login set password & PIN
Welcome!
So, now you have finally decided to join the investor community and wish to directly invest in stock market. We must congratulate you as you are now among the less than 5% people in India who invest in equities and we wish you become very successful and profitable in your stock market journey. Stock market has huge potentials to earn as well as to learn. In the beginning you have to learn first and in every step you will learn something new, gain new experience and become stronger and as you learn more definitely you will earn more. To know more about stock market basics you can check our articles.
So the very first thing you need to enter the stock market is a Demat Account to store stocks that you purchase and a Trading account to trade that means to buy and sell in Stock market, because you cannot directly buy or sell in stock exchanges. For which you have to open an account with any of the Brokers those are licensed agencies by the SEBI (Govt. Regulator), who will provide you a Demat cum Trading Account, a platform through which you can invest and trade in stock market.
Now all the major exchanges in India like BSE & NSE are online. So all the major brokers provide online platform to trade and you can access their services over internet easily from laptop, desktop and from your mobile phone also through their mobile apps. The account opening process is also fully online and you don’t need to visit any office or to send any documents by post. The full process of account opening and document verification will be done online. You just need a mobile phone with internet connection which mostly all of us have.
How to choose a stock broker in India – Top brokers in India
Before opening an account first you have to choose your preferred brokerage agency with whom you will open your account. And that depends upon which types of services you expect from them. There are basically two types of brokerage agencies depending upon their services offered.
Full Service Broker
Full service brokers offer various types of research, analysis reports and advice & recommendations for its clients, for which they charges some extra fees. Therefore brokerages of full service brokers are often higher related to Discount brokers. There are a number of full service brokers in India. Most of them are backed by various Banks. Followings are a few of them.
Sharekhan
Discount Broker
Discount Brokers usually don’t provide any extra services rather they focus on providing a platform to trade (Buy & Sell) in stock market to its clients. They usually charges less brokerage. Most of the discount broker charge Rs.20/- for each Intraday & Futures & Options trade and 0 (Zero) brokerage for delivery trades. (If you buy any stock and sell it the same day then this trade is known as intraday trade and if you hold it for more than one day then it will be added to your Holdings or Demat Account and that trade is known as Delivery trade). Discount Brokers don’t charge any brokerage for delivery trades. You only pay brokerage when you sell the stocks from your holdings. They also charge very small amount (from 0 to Rs.300/- only) as Account Opening Charge and Annual Maintenance Charge (AMC). Small investors / traders generally prefer to open account with discount brokers due to less charges, so discount brokers are more popular in India. Here is a list of some popular discount brokers in India.
Zerodha is the No. 1 and most popular discount broker in India. Its platform is very fast and user friendly. It charges the lowest brokerage than any other brokers.
Upstox is a rapidly growing brokerage agency and funded by TATA group Chairman Sj. Ratan Tata. It offers very good services and user friendly platform and charges are also low.
Angel One was a full service broker and now they have changed their charges similar to discount brokers. So they are gaining popularity rapidly among the retail investors.
Groww was a platform to invest in Mutual Funds and now they have entered in direct stock trading & investing services. Their services are also very good.
Documents required to open a demat account online
You have to take following documents in your hand before starting the account opening process.
- A valid Mobile Number & E-mail ID. You have to verify both of them through OTP.
- Aadhar Card with mobile number registered in it. You have to digitally sign the required documents online authenticating through Aadhar for which OTP will come to the registered mobile number.
- PAN card is required as you have to enter the PAN number and you may have to upload the Photo copy of you PAN card.
- DigiLocker account installed and activated in your mobile and you have to add your Aadhar & PAN in to your DigiLocker account. You have to link your DigiLocker account during the account opening process in order to verify your Aadhar & PAN online.
- Bank Passbook you have to add your bank Account Number and may have to upload copy of first page of Bank Passbook where Name, Account Number & IFSC code should be clearly visible.
- You should have a UPI payment app like GPay, PhonePe etc to add money and make payment easily. You can do it with card payment or net banking also but you have to pay some transaction fees. Some brokers don’t charge any account opening fees.
- Have two plane A4 size paper with you. It will be required at the time of uploading selfie photo or video and you have to upload photo of your signature by writing it on a paper.
Steps to open demat account online
You can open account using your mobile phone, that is the easiest way or you can use laptop of computer with webcam. The entire process of demat account opening is fully online & simple and could be completed within 15 minutes if you have all the documents ready in your hand. The steps mentioned here may be different depending upon the broker you choose but the documents required and overall process is similar for all the brokers.
Step 1 – download app or visit website
Click in the name of your preferred broker over here that will take you to their account opening page (or to Google Play Store in mobile phone, download and install the mobile app and open it).
Step 2 – mobile number verification
You have to enter your mobile number and have to verify it through mobile OTP.
Step 3 – Name and Email verification
You have to enter your name (as on your PAN card) and E-mail ID. You have to verify your email id through the OTP sent to your mail box.
Step 4 – PAN & Date of Birth
You have to enter your PAN Number & Date of Birth.
Step 5 – Pay account opening charge
You have to pay the account opening charge may be Rs.200 or 300 through UPI like GPay or PhonePe or you can pay through you debit card or credit card also. Some brokers like Upstox may not charge any account opening charge when they have discount offers.
Step 6 – DigiLocker verification for Zerodha
In case you open account with Zerodha, you have to verify your PAN and KYC details through Digilocker. For which you should have DigiLocker installed and activated in your mobile and your Aadhar & PAN uploaded in it. You have to login to your DigiLocker account with your Aadhar number and you will receive an OTP in the mobile number registered in your Aadhar card to login to DigiLocker. Then accept and complete the KYC verification process,
Step 7 – Personal details
You have to enter your personal details like father’s name, mother’s name, Gender, Marital status, occupation, annual income, address etc.
Step 8 – Bank details
You have to enter your Bank Account Number and IFSC code.
Step 9 – IPV Selfie upload
You have to take a selfie to upload your passport size photo or you may have to take a short selfie video. In case of Zerodha you have to take a selfie holding a paper with a code written on it, this is the IPV (in person verification) process.
Step 10 – Identity card upload
You may have to take a photo of your PAN card and any Identity card like Aadhar card or Passport and upload it.
Step 11 – Signature upload
You have to upload your signature. Put your signature on a plane paper and take a photo and submit.
Step 12 – Add nominee details
You may have to add a nominee and enter the details like name, date of birth, relation with you and identity proof of nominee like Aadhar or PAN or Voter ID number etc. You can skip adding nominee at the time of account opening but you have to add it later.
Step 13 – Digitally e-Sign through NSDL
Finally you have to verify your KYC and digitally e-sign all the documents online through your Aadhar. You have to, confirm terms and conditions, then It will open the NSDL e-sign page, tick the box, enter your Aadhar Number, click send OTP then enter the OTP received in the mobile number registered in your Aadhar card and verify.
Step 14 – First time login set password & PIN
After this your demat account opening process will be completed. You will receive an User ID and password on your email after verification process complete (within one day). After receiving the ID & Password you can login to your broker’s app in your mobile or in their website login (in case of Groww you can directly login with your email). For first time login you have to set your preferred password and a four digit or six digit PIN. Then login with your PIN in the mobile app.
This is briefly all about online demat account opening process.
Thanks for visiting our page wish you happy trading.
