How to Open a Demat Account Online

Every day Nifty is touching a new high. It has been at its all-time high at 10877 points on January 18, 2018. Don’t you think that you could also be part of this journey? You can begin with investing in the stock market as an investor. I have already written one article on how you can start investing in the stock market. For those who are new and are yet to start of with investing in the stock market,  I suggest going through the article how to open a demat account and its benefits. To begin investing in the stock market you need to open a Demat and trading account.

What is a Demat Account?

Demat account is an account to hold the shares in the electronic form. Dematerialization is the process by which physical shares are converted into electronic form. You need to have a Demat account in order to start investing in the stock market. A trading account is linked to the Demat account. With this trading account, you can buy and sell shares in the stock market. You buy a share from the market with the help of trading account and store it in  Demat account. You can take the stock from the Demat account and sell it through the trading account.

Benefits of Demat Account:

The benefits of Demat account are as follows:

  1. It eliminates the risk of preserving the physical share certificates. The physical certificates can be lost, stolen etc.
  2. Paperwork is not involved which is a very time consuming and cumbersome activity.
  3. You can access the account from anywhere as this is electronic.
  4. Shares which have been split or awarded bonus shares, the quantities are automatically adjusted.
  5. The brokers don’t have to deal with delivery problems or adjusting bonus etc. Hence the brokerage charges are less.

Demat Account Charges:

Most banks and other Demat Service Providers do not have any account opening charges for opening a Demat and Trading account. Banks however do charge customers for maintaining the Demat account. Generally, bank charges annually in the form of Annual maintenance charge. The charge ranges between Rs 300 – 750 in a year.

The bank charges for purchasing and selling of shares in the form of brokerage charges. The brokerage charge varies with the purchasing and selling value of the stocks. Some of the banks charge a fixed amount for brokerage.

When you sell your stocks, you need to transfer them from Demat account to trading account, which is called as Re-materialization.  Normally the banks are charging a flat fee of Rs 15-25 for re-materialization.Some brokerage houses such as Angel  Broking is giving you a free Demat account for lifetime.

How to Open a Demat Account?

You can open a Demat account online and offline both ways. You can go to your nearest bank branch for opening a Demat and trading account. In the other way, all banks have simplified their process of opening of the Demat account and it can be alternatively opened online as well .

You can follow the below procedure to open a Demat account online.

  1. First, select a depository participant to open the Demat account. These act like a broker between the investor and stock market.
  2. Open the website of the selected Depository Participant such as Angel Broking.
  3. Fill up the details such as your name, PAN, Mobile number etc.
  4. Upon verification of the details, your Demat account gets activated.
  5. Now you can log in to your account and start trading.

Add on Features:

Before selecting a Demat account service provider you can check the add-on features provided by some of the Demat service providers. One such feature is ARQ by @angelbroking on which I was stumbled upon. ARQ is a hyper-intelligent investment engine. #AchievedByARQ

ARQ is a revolutionary automated investment engine that takes emotional bias out of investing and you will get the benefit of the maximum performance of equities. It also offers recommendations for Mutual Funds (Lumpsum as well as SIP) and Equity Stocks. It is accessible to all Angel Broking Customers via its trading platform, Angel Trade or the Angel Broking App.

ARQ’s advisory is based on a model whose performance has been optimized to provide recommendations with high outperformance and strike rates. The model has been tested using scientific back-testing and has also been validated based on its track record. The model has been calibrated to take advantage of the upticks in the stocks or mutual funds during an investment period.

Conclusion:

By now, I am sure you are excited to invest in the stock market. Think of the charges Vis a Vis features of the Demat account after that open the best Demat account online.

Wish you all the best for your journey in the stock market.

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