What is a Demat Account?
If you’re a recent entrant into securities trading, you may not have heard of the pre-upstox demat & trading account era – a time when shares and securities were held ‘physically’ – in the form of certificates and sheets of paper. Imagine that – millions of reams of paper spread across hundreds of thousands of investors holding onto their stocks.
Key Points
- A dematerialized account is an electronic account that holds all your securities i.e stocks, shares, bonds etc in an electronic form.
- In order to open an account, you need to go through a depository such as CDSL or NSDL.
- There’s no need for you to hold on to physical share certificates.
If you’re looking to buy securities (like shares, mutual funds or ETFs) online, a dematerialized account is absolutely essential. Apart from the obvious benefits it offers (it’s cheaper and faster), it’s also a requirement when you wish to register yourself with any brokerage.
About Upstox
Upstox is the trading platform offered by RKSV, the popular discount broker offering Equity, Commodity and Currency Derivatives trading services at BSE, NSE and MCX. It is built on top of Omnisys NEST OMS (Order Management System). Upstox makes it extremely easy to place orders through mobile or web browser. It’s faster and free trading platform.
Upstox is the Mobile and Website based trading platform offering trading, analysis, charting and many more rich trading features. Trading is offered on all the stock exchanges.
How to open a demat account
Before you get started on the demat account opening procedure, select your broker. This choice could depend on a variety of factors – such as brokerage fees/charges (more on this below), the platform’s / user interface, and its customer service.
In today’s digital world, the way you apply for your account matters. Your broker is the one who’ll help you open a demat account in the easiest way possible. Is it the traditional method involving paper forms? Or the new-age Aadhaar-based paperless online method?
We’ll lay them out here for you and let you figure out what’s easier.
Steps to open a Upstox Trading and Demat Account
The online upstox demat account opening method
In today’s digital world, there really shouldn’t be any reason for you to be filling out physical forms when almost the entirety of your information can now be stored digitally. Fortunately, some brokers have the online processing part figured out. Customers can sign up and complete the registration process online. As long as you have an Aadhaar card with your mobile number linked to it, you’re good to go!
- Head to the upstox online demat account opening page.
- Enter your basic details, and click Sign Up.
- Keep scanned copies (i.e. soft copies) of your documents (Aadhaar, PAN, Cancelled Cheque, and your latest bank statement) with you for when you are directed to upload them.
- Enter your Aadhaar details and the OTP you receive on your linked mobile number in order to verify your identity.
That should be it. Your upstox demat account should now be created.
Documents required to Open Upstox Demat Account Free
Proof of Identity
- PAN Card
- UID (Aadhaar)
- Driving Licence
- Passport
- Voter Identity Card
- NREGA Job Card
- Any document notified by the central government
Proof of Address
Lastly, you’ll need to submit a proof of address in India. There can be some overlap of address proof and ID proof documents. The full list includes:
- Passport
- UID (Aadhaar)
- Voter Identity Card
- State issues Driving License
- NREGA Job Card
- Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid
mobile phone, piped gas, water bill). - Bank account or Post Office savings bank account statement.
- Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India.
Proof of Bank
You’ll have to show proof of the bank account that you wish to connect with your account. If you have a canceled cheque that has your name on it then you can send it to your broker along with the account opening forms. Or, if you’re opting for the online account opening process you can upload the canceled cheque with the bank’s IFSC code to the online portal.
In a bank proof a broker needs the following from you:
- Your name
- Bank’s IFSC Code
- MICR
Upstox Demat Account Charges
There are multiple sorts of account charges you’re likely to come across – both during the time when you hunt for your preferred broker and when you’ve completed your registration process. Primarily, these charges can be classified into 3 types:
- Account Opening Fees
- Annual Maintenance Fee
- Transaction Fees
Account Opening Fees is the fees your broker will collect for the whole process of registering your upstox trading and demat account. Not all brokers charge this fee, so you’re likely to come across a few where you would not be paying any such fees. Some online brokers might charge a nominal account opening fee to trade on different segments.
Annual Maintenance Fee is usually a prepaid amount that your broker collects to keep your account active throughout the year. While these charges are usually nominal (Rs 300 – 800 for the year), many brokers in the industry have now begun to charge zero fees here as well. The race to provide traders with the best rates and services has led to some intense competition in the brokerage industry landscape.
Transaction Fees refer to the charges your broker will levy for moving (debiting and crediting) your stocks or other securities to and from your dematerialized account. This can vary wildly across brokers depending on their target audience.
We charge zero demat account opening fees. An Annual Maintenance Fee of Rs 150 + tax applies to the account.
Upstox continues to keep costs low with the Transaction Fees as well – charging Rs 13+5.5+tax (Rs 5.5 being CDSL’s depository charges) – significantly lower than large traditional broking firms.
While discount brokerages charge low account opening fees and brokerage, that’s not to say they cut down on services.
If you see the merits of a convenient and online Aadhaar-based registration, you’re welcome to get started with the online upstox demat account opening.
