How To Open A Free Demat Account Online
In the last decade in India, the share market has attracted many people towards it. The availability of the internet and online trading platforms and the desire to make more money has encouraged people to jump into trading. So, if you are also thinking about investing in the share market, you can do it easily with the help of a Demat account.
Opening a free Demat account online is a great idea.
A Demat Account helps you to start and learn trading with as low an amount as possible. Along with trading, the Demat account is also used by traders for various other purposes. So let’s check a few basics of a free Demat account opening process.
What is a Demat Account?
Demat account, or dematerialised account, is a type of account that helps investors to hold securities and shares in the electronic format. This account has all the investments that traders make in shares, exchange-traded funds, government securities, mutual funds and bonds in one place.
What is dematerialisation?
Dematerialisation is a process through which the physical share certificates are converted into electronic forms to be managed and accessed from any part of the world. If a person wants to become an online investor, he needs to open a Demat account with a Depository Participant (DP). After the dematerialisation process, the investor does not need to hold share documents in their physical format, thus facilitating seamless monitoring and tracking of holdings.
Free Demat account opening online process
Several trading platforms offer the service of Demat accounts. Every trading platform is different from the other platform in one way or another. It means the process of opening a Demat account varies on different platform. Yet, here is a list of common steps to give you a complete idea of the entire process, have a look-
- The first step is to research which trading platform is offering a free Demat account on the internet. Stockbroking houses mention if they offer free Demat accounts, as in the case of Hem Securities stockbroker. Along with that, check what instruments are there for trading, their trading charges, and their terms and conditions.
- After selecting the right trading platform giving you a free Demat account online, open their website and click on “Open a Demat Account”.
- It will open a form asking you to fill out your basic details. It will include your name, mobile number, age, gender, email ID, PAN number and Aadhar number.
- You will be asked to provide your bank details in the next step. Give the bank details that you want to link with your Demat account. You will use this linked bank account to add money to your Demat account for buying shares. On the other hand, the money you receive in your Demat account after selling shares can only be transferred to this linked bank account.
- After that, you need to choose a subscription plan. All the broking houses have their plans, so compare the subscription plans of the available homes and then choose a trading platform.
- The next phase in this procedure is to upload all the KYC documents. Generally, the broking houses ask you to upload a PAN card, digital signature, and address proof (Aadhar card, passport, voter ID, or driving license).
- Verification of the account holder is also essential for any broking house. For verification, you either need to record your video while reading the script provided by the broker or start in-person verification by uploading a pre-recorded video.
- After sending the video, review, all the entered details and e-sign your application form. Enter OTP to validate the process.
- Click on “Submit” to submit your application and wait for the login credentials that will be provided shortly.
- The Demat account process is completed. Now add funds to your Demat account and start trading.
Benefits of a Demat account
- The Demat account makes it easy for traders to keep their share certificates utterly safe in an electronic format. They can even access them from any part of the world whenever they want.
- If you own shares in a company, you will be required to safely-keep plenty of share certificates. If they are in hard copy, the risk of tampering, forgery, loss, and theft will always be there. But if they are in soft copy, you can keep them password protected and share them through a secured digital repository.
- Unlike paper-based documents, electronic documents saved in a Demat account are convenient to transfer to other people. It also makes it easy for traders to hold any number of shares, so they can trade quickly in volumes and monitor every detail of their shares available in their Demat account.
- Along with the shares, a Demat account also allows traders to hold multiple assets, like exchange-traded funds, mutual funds, bonds, government securities, etc.
- In Demat accounts, bonus stock splits also get automatically updated. It means that if the company whose shares you are holding in your Demat account changes the value of its stocks, such as stock split, bonus issue, etc., the revised prices get automatically updated in your Demat account.
- The account holders can easily access a Demat account at any time through their laptop, smartphone or tab.
- The account holder also gets the nomination facility as per the process framed by the depository. If the account holder gets encountered with any casualty or death, the appointed nominee receives all the shareholding in that Demat account.
A Demat account offers you a great way to hold securities (bonds, mutual funds, shares, etc.) in an electronic format so they can be accessed and managed efficiently. Opening a free Demat account online is a simple process, and many broking houses in India provide you with this facility, such as Hem Securities broking house. Hem Securities stockbroker enables you to open a free Demat account in just 15 minutes. It also allows you to trade in various instruments, including Equities, Derivatives, Commodities, and currency.