Introduction
If you’re ready to enter the stock market, the first thing you’ll need is a Demat and trading account. Whether your goal is to invest in shares, mutual funds, ETFs, or IPOs, understanding how to open a Demat and trading account in India is your first step.
This 2025 guide covers everything from what these accounts are, how to choose the best provider, required documents, step-by-step registration process, and the top brokers in India.
What is a Demat Account?
A Demat account (short for dematerialized account) is an account where your stocks, mutual funds, and other securities are held electronically. It replaces physical share certificates with digital versions, making trading safer, faster, and more convenient.
Think of it like a bank account, but instead of money, it stores your investments.
What is a Trading Account?
While a Demat account holds your investments, a trading account allows you to buy or sell those investments on stock exchanges like NSE and BSE.
Both accounts are typically linked together for seamless transactions.
Difference Between Demat and Trading Account
| Feature | Demat Account | Trading Account |
|---|---|---|
| Purpose | Store securities electronically | Execute buy/sell orders |
| Role in Investing | Holding account | Transaction account |
| Regulated by | NSDL/CDSL | SEBI & Stock Exchanges |
| Mandatory for | Equity delivery investments | All types of stock trading |
Understanding how to open a Demat and trading account in India begins with recognizing the role of each account.
Who Can Open a Demat and Trading Account?
Anyone above the age of 18 with the following can open an account:
- PAN card
- Aadhar card
- Bank account
- Valid mobile number
- Email address
Minors can also have Demat accounts with guardians. NRIs can open NRI Demat accounts with specific rules.
Documents Required to Open a Demat and Trading Account in India
Here’s what you need:
- PAN Card (mandatory)
- Aadhar Card (linked with mobile)
- Cancelled Cheque or Bank Statement
- Recent Passport-size Photograph
- Signature on white paper
- Income Proof (only if trading in derivatives)
Note: Many brokers allow 100% online account opening with Aadhaar-based eKYC and DigiLocker integration.
Step-by-Step Process to Open a Demat and Trading Account in India
✅ Step 1: Choose a Depository Participant (Broker)
Popular brokers:
- Zerodha
- Upstox
- Groww
- Angel One
- ICICI Direct
- HDFC Securities
- Kotak Securities
- 5Paisa
Look for:
- Low brokerage
- User-friendly app
- Fast customer support
- Trusted reviews
✅ Step 2: Visit Broker’s Website or App
Click on “Open Account” or “Start Investing” button.
✅ Step 3: Fill Basic Information
Enter:
- PAN number
- Name
- Date of Birth
- Email ID
- Mobile number
Verify via OTP.
✅ Step 4: Upload Documents
Upload scanned copies or click live photos of:
- PAN Card
- Aadhaar Card
- Signature
- Photo
- Bank Proof
Use DigiLocker for fast Aadhaar verification.
✅ Step 5: eSign with Aadhaar OTP
You’ll receive an OTP on your Aadhaar-linked mobile number. Use it to sign digitally.
✅ Step 6: In-Person Verification (IPV)
Record a 10-second video as per on-screen instructions. This step is SEBI-mandated.
✅ Step 7: Wait for Approval
Account is usually approved within:
- 15 minutes (Zerodha, Groww)
- Few hours to 1 day (others)
Once approved, you’ll receive:
- Client ID
- Login credentials
- Instructions to start trading
Congratulations! You now know how to open a Demat and trading account in India and are ready to invest.
Top 5 Brokers to Open a Demat and Trading Account in 2025
| Broker | Account Opening Fee | Annual Maintenance | Best For |
|---|---|---|---|
| Zerodha | ₹200 | ₹300 | Beginners, low brokerage |
| Upstox | ₹0 (limited offer) | ₹300 | App-based trading |
| Groww | ₹0 | ₹0 | Mutual funds & stocks combo |
| Angel One | ₹0 | ₹240 | Full-service + free tools |
| 5Paisa | ₹0 | ₹300 | Budget investors |
Charges Associated with Demat and Trading Accounts
- Account Opening Fee – ₹0 to ₹500 (some brokers waive it)
- Annual Maintenance Charges (AMC) – ₹0 to ₹600/year
- Brokerage Charges:
- Equity Delivery: ₹0 – ₹20/trade
- Intraday/Options: ₹10 – ₹20/order
- Other Charges:
- STT, GST, Stamp Duty, SEBI Charges
Always compare these before choosing a broker.
Tips for First-Time Investors
- Start with small investments
- Don’t rush into intraday trading
- Use virtual stock trading apps to practice
- Learn about mutual funds and ETFs
- Track your investments regularly
- Stay updated with market news via Moneycontrol or ET Markets
FAQs on Opening a Demat and Trading Account in India
Q1. Can I open a Demat account online?
Yes, almost all brokers offer 100% online account opening with Aadhaar eKYC.
Q2. Can I have multiple Demat accounts?
Yes, but only one account per broker. You can open with different brokers.
Q3. Is a Demat account mandatory for mutual funds?
Not mandatory, but useful for holding direct stock ETFs and listed funds.
Q4. Can I open a joint Demat account?
Yes, up to 3 holders allowed.
Q5. Can I open an account without income proof?
Yes, if you don’t trade in derivatives, income proof is optional.
Conclusion
Now that you know how to open a Demat and trading account in India, you’re one step closer to entering the world of investing and wealth-building. The process is simpler than ever before—completely online, fast, and secure.
Choose your broker wisely, understand all charges, and invest with patience. The stock market is a great place to grow your wealth over time—if you start right.
