10 Things To Know Before Opening Free Demat Account

 The Economic Survey of 2021–22 states that from April to November of last year, the number of online Demat accounts increased by 2.21 crore. Retail investors actively participate in the Indian stock market, which is the main conclusion to be drawn from this information. Experts forecast that this trend would last for a very long time, maybe opening the door for India's market to surpass the size of the New York Stock Exchange. However, you must first register a free Demat account in order to begin the process of becoming a successful market participant. With this guide, we will assist you in setting a Demat account by providing important information.



Top 10 Things To Know Before Opening Demat Account

Let's examine these ten issues in more detail.

1. Uses of Demat Account

Prior to purchasing any assets, you should educate yourself on the meaning of a Demat account and its necessity. Shares and other securities are recorded, stored, maintained, and transferred on your behalf via a Demat account. 

2. Trading and Investing Requirements

The market now offers a wide variety of financial goods. The ability to trade under one roof is not something that every broker offers to its clients. The fees for trading can vary based on the commodity. 

Therefore, if you want to try multi-product trading, you must choose one that offers an extensive range of services at fair prices.

3. Reliability of Broking Platform

Selecting to register a Demat account with a reputable online stock broker like may provide you access to technologically supported user-first features. When attempting to trade and invest at scale, this might be helpful. 

4. Pricing and Brokerage Charges

Discount brokers and conventional full-service providers are the two categories of brokers. You can choose a broker who best meets your needs, whether you want a personalised trading strategy or want to reduce broking expenses. 

5. Documents Required to Open Demat Account

To begin the process of creating a free Demat account, you will need to prepare the following documents: 

  • Identity documentation includes driver's licences, passports, Aadhaar cards, Pan cards, voter's cards, NREGA job cards, and so forth.

  • IDs that serve as proof of address include driver's licences, voter's cards, utility bills, passports, and Aadhaar cards.

  • Bank evidence includes things like an account statement, cancelled cheque, passbook, MICR, and IFSC.

6. Account Opening Process

Both conventional and paperless methods are available for opening a free Demat account. People often choose the paperless eKYC option, which completes the procedure in a matter of minutes.


You may create a 100% paperless demat account at Dhan in a matter of minutes:

7. 2 in 1 Account Service

It might be difficult to keep track of many Demat and trading accounts. Thus, exercise caution and choose a 2-in-1 service provider to simplify your life.

8. SEBI Registration of Broker

There are a few anomalies out there that promise you returns that are higher than normal; these raise suspicions. Investors need to have faith in their brokers at all times, and there's nothing more safe than a SEBI registration! Thus, make sure to proceed with one.

9. Data Security and Safety Policies of Broker

Your data has to be secure at all times because these days, everything is done on computers. Since your broker is in charge of ensuring positive data privacy, this becomes an important consideration for you to make when setting a Demat account.

10. Miscellaneous Features & Facts

It is legal to open more than one Demat account in India. As a matter of fact, shares can be moved across Demat accounts.

Conclusion

Opening a free Demat account with Globe Capital might mean new chances and a wealth of knowledge for you. Enjoy the process, but use caution while making intelligent investments.

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