Opening demat and trading account
In the 21st century opening demat and trading account is comparatively easy than opening a bank account. Literally opening account with top brokerage firms doesn’t take much more than 20 min of your time, this happened as the entire process completes through online only.
Demat and trading account
A demat account is an account that stores your equity shares and a trading account is used to make the transactions in excanges.
when you buy 100 shares of x company of price 500 each the total money (50,000) is immediately debited from your trading account after three days(T+2) the shares of x company will be credited in your demat account like wise when you sell the shares the shares will be debited from your demat account and money will be credited in your trading account. Your money in the trading account can be transferred to your bank account at any time.
Demat and trading accounts are opened simultaneously by most of the brokerage firms
Q. with whom my shares are present with?
A. Your shares are not present with the brokerage firms. Your shares are securely present with the securities depositories(NSDL and CDSL) these are undertaken government bodies.
Q.Will I don’t get physical shares?
A. No, since past 20 years all the shares are held digitally with the securities depositories but the ownership of these shares are linked with your DP ID which you get when you open an account.
Q. who much charges will be applied for opening and maintaining account?
A. Thank to technology the scams related to stock market has reduced significantly. The charges these days for trading and annual maintenance charges(AMC) are very negotiable.
In upstox the delivery orders are absolutely free and in intraday a max of 20rs is charged per order.
AMC on trading account is free with UPSTOX and 150rs is charged for demat account annually.
Required documents for account opening
You need to have
- Adhar card
- Pan card
- Bank account
- Your adhar number should be linked with your mobile number.
You need to click one the upstox image on the right side of the screen “Account with UPSTOX”, you will be directed to the account opening page and you need to provide all the details. All the details are taken for the protection of your account purpose. After you given all your details your Id and password are sent to you email and you can login through this link.