How to Open a Demat Account?

Opening a Demat account has become accessible through both online and offline methods. You can complete the process digitally from home or visit branch offices for traditional application procedures. For this, you must provide documents like PAN, Aadhaar, and bank details. In this article, let us find out how to open a Demat account online and offline in detail, along with the required documents and charges involved. 

Steps to Open a Demat Account Online

The following is a breakdown of some easy steps to open a Demat account online with YES Securities. 

• Step 1: Visit the Official Website 

Go to the official 'YES Securities' website, and click on the 'open Demat Account' option. 

• Step 2: Enter OTP 

Verify your mobile and email, and enter the OTP that was sent to you. It often helps to ensure that all communications in this process are secured. 

• Step 3: Fill in the Demat Application Form 

Now, you need to fill in the online application form by providing your personal details and financial details.  

• Step 4: Complete Identity Verification 

Once you have done that, you have to take a scan of your PAN card and upload a live selfie for identity verification purposes. 

• Step 5: Provide E-signature 

After that, you have to e-sign the application form and verify the e-signature using your Aadhaar card. 

• Step 6: Get Login Details  

After your application has been approved, you will receive an email with your Demat account number and login details for trading.  

How to Open a Demat Account Offline?

Now that you have understood how to open a Demat account online, let's explore how you can open a Demat account offline in five easy steps. 

• Step 1: Fill in the Application Form 

Fill in your details and submit the application form at the broker's office. 

• Step 2: Submit Documents 

After that, submit the requested documents along with the application, such as proof of identity, address proof, passport photo, and other essential documents requested by the broker. 

• Step 3: In-person Verification 

Visit the office for in-person verification. The staff will often verify your documents and identity during this visit. 

• Step 4: Sign Agreement 

Sign the agreement, which contains terms and conditions for your account. 

• Step 5: Receive Approval 

You will receive your account details via email or post after approval. 

Documents Required to Open a Demat Account

When you want to create a Demat account online, you need to provide certain documents. The Securities and Exchange Board of India (SEBI) prescribed these standard requirements for all retail investors.  

Below is the list of documents that are often required to open a Demat account: 

1. PAN card, Aadhaar card, etc., are required for identity proof 

2. Recent colour photographs are preferred 

3. A clear copy of the signature on plain paper 

4. Voter ID, utility bill, passport, etc, for address verification 

5. Xerox copy of the Passbook or a latest bank statement copy 

6. Cancelled Cheque from your linked savings account 

7. Salary slip or IT returns for derivative trading 

Charges for Opening a Demat Account

When you open a Demat account, stockbrokers charge various fees for their services. Here are some of the standard charges levied for opening and maintaining a Demat account: 

• Account Opening Fee: This fee is the one-time payment you pay to your broker when opening your Demat account. 

• Annual Maintenance Charge (AMC): This is the annual fee paid to your depository participant for maintaining your Demat account. 

• Transaction Fees: The charges you will pay for the execution of each transaction when buying or selling securities. 

• Custodian Fee: Certain depository participants might charge a fee for holding securities securely, called the custodian charges. 

• DP Charges: Fees paid for services offered by depositories such as NSDL or CDSL. 

Here's a brief range of various fees charged on a Demat account. 

Fee Type	Range*
Account Opening Charge	₹200 to ₹500
Annual Maintenance Charges	₹200 to ₹500
Transaction Fees	₹25 to ₹50
Custodian Fees	₹500 to ₹1000
Depository charges	₹10 to ₹ 20
Brokerage charges	0.25% to 0.50%

Note: The above-mentioned charges can vary from one broker to another. Therefore, it is important to compare charges before you open your Demat account 

Things You Must Know While Opening a Demat Account

Now that you know how to open a Demat account, let's take a look at the things you must know while opening your account. 

• Choosing a Trusted Broker: Choose a broker with a strong market reputation and satisfied customer feedback. The broker should hold SEBI registration and maintain regulatory compliance. 

• Comparing Brokerage Charges: Review all charges before account opening, as these costs may impact your future trading expenses considerably. 

• Opting for an Easy-to-Use Platform: The trading website or app should be simple to understand, as this often makes trading easier for new investors. 

• Selecting Reliable Customer Support: The reliable platform offers help when you need urgent support. Therefore, you should select a broker who responds quickly when account-related problems occur. 

Conclusion

You can open a Demat account on a DP’s online portal or at its office, following the due process. However, always check your details and documents while submitting an application to create a Demat account. Moreover, select brokers that provide access to various types of securities such as stocks, mutual funds, ETFs, and bonds. Always choose reliable brokers who offer support to guide you through each step, making the process even smoother.