The charges of Demat account vary as per the volume held in the account, type of account subscribed, and the terms and conditions laid by the depository and the stockbroker. While there are no Demat account opening charges, every stockbroker charges transaction/operation fees including the Annual Maintenance Charge (AMC). Failure to pay these fees may result in the freezing of the account.

CDSL through intermediaries / Depository Participant (DP) / stockbrokers such as Angel One. To open a Demat account, you need to contact the DP and fill out the account opening form. Once completed, you need to submit the form along with Proof of Identity and Proof of Address documents. The documents required to open a Demat account are identity proof like PAN card, copy of valid residence proof, existing financial balance sheets and recent photographs. Once the applicant’s details are verified, the application is processed. The broker then dispatches a welcome kit with details of the applicant’s User ID and password. One can access their Demat account using these details and begin trading in the stock market. It is essential that you open a Demat account with a reputed stock broking company like Angel One.

Usually, it takes about 48 to 72 hours to open a Demat account. However, with Angel One, you can get your Demat Account activated in one hour.

After submitting your application, the DP carries out a verification of the details provided on the Account Opening form. On completion of the verification, your application is processed and a welcome kit is dispatched. The welcome kit contains your user ID and password. You can then log into your account using these details and begin trading online. Your user ID and password are completely safe. Angel One does not dispatch the welcome kit containing the user ID and password to anyone except the client, as it contains confidential information. Once you receive your account details, it is advisable to login and change your password for security reasons

A Demat account can be held by a single as well as in a joint ownership. A joint Demat account can have a maximum of three account holders, which includes the main holder plus two joint holders. In effect, the joint holders acquire rights to the shares held in the joint Demat account.

A trading account is different from a Demat account. While the latter only retains shares and securities, the former facilitates their sale and purchase. Shares purchased through a trading account may be deposited into the Demat account. Existing shares may also be withdrawn from a Demat account and sold through a trading account. The purpose of linking your trading account to your Demat account is to avoid the process of verification each time. This may also simplify trading. After the order has been sanctioned, shares are either removed from or deposited to your Demat account. When linking the Demat and trading accounts, it is also understand the difference between 2-in-1 accounts and 3-in-1 trading accounts. The 2-in-1 trading account basically integrates the trading account and the Demat account. The 3-in-1 account is offered by brokers that have banking operations within the group. Thus, ICICI Securities, HDFC Securities, Axis Securities and Kotak Securities are all able to offer 3-in-1 accounts due to their banking interface. While 2-in-1 accounts are a must to ensure seamless relationship between trading and Demat, the 3-in-1 is not a major advantage as most broking platforms will allow you to transfer funds almost seamlessly into your trading account.

A trader may open multiple Demat accounts, however they can open only one trading account with a broker. Investors would want to have more than one Demat account if they are active traders and use each Demat account for a different trading strategy. However, they should also keep in mind the transaction and operation (AMC) fees associated with each account.