Investing in the stock market has become increasingly accessible with the advent of online platforms. Zerodha, one of India’s leading discount brokers, offers a seamless process to open a Demat account online with a few easy steps. However, the biggest concern for everyone is how to open demat account in Zerodha? In this detailed blog will guide you through the step-by-step process of opening a Demat account with Zerodha. Read till the end to know the process in detail.
What is a Demat Account?
A Demat account is a digital repository where your shares and securities are held in electronic form. It’s akin to a bank account for shares. Without a Demat account, you cannot buy or sell shares in the stock market. Therefore, you need to rely on a stock broker for the opening of a Demat account if you wish to kickstart your investment journey.
What is Zerodha?
Zerodha is India’s largest and most popular discount broker. Founded in 2010 by Nithin and Nikhil Kamath, it has revolutionized the way Indians invest by offering low-cost brokerage services. Unlike traditional full-service brokers, Zerodha focuses on providing technology-driven platforms and tools for investors to trade and invest independently.
The company’s name, Zerodha, is a combination of ‘zero’ and ‘rodha’ (Sanskrit for ‘barrier’), reflecting its core philosophy of eliminating barriers to investing.
Why Choose Zerodha?
Before we dive into the process of how to open demat account in Zerodha. Let us discuss why Zerodha has garnered a massive following:
Low Brokerage Charges
- Equity Delivery: Zerodha offers zero brokerage on equity delivery trades, making it a preferred choice for long-term investors.
- Intraday and F&O: A flat fee of Rs. 20 or 0.03% (whichever is lower) per executed order is charged for intraday and F&O trading, significantly lower than traditional brokers.
Robust Trading Platforms
- Kite: Zerodha’s flagship trading platform is known for its user-friendly interface, speed, and reliability. It caters to both beginners and experienced traders.
- Console: This platform is designed for advanced traders and provides in-depth market data and analysis tools.
Comprehensive Product Offerings
- Zerodha offers a wide range of investment options, including equities, derivatives, mutual funds, commodities, currencies, and more.
- It also provides services like IPO applications, margin trading, and research tools.
Educational Resources
- Zerodha is committed to financial education. Its platform, Varsity, offers a wealth of free learning resources, including articles, videos, and courses on investing, trading, and personal finance.
Excellent Customer Support
- Zerodha is known for its responsive and helpful customer support team, available through various channels like phone, email, and chat.
Technological Innovation
- Zerodha continuously invests in technology to improve its platforms and services. It has introduced several innovative features, such as paperless account opening, online KYC, and advanced order types.
How to Open Zerodha Account?
If you want to know how to open demat account in Zerodha then here is a step-by-step process for doing the same.
Step 1. Visit the Zerodha Website
Go to https://zerodha.com/. Or click here to open Zerodha’s official website. Then click on the “Open an Account” button.
Step 2. Fill in Basic Details
Enter your mobile number and verify it with the OTP. Then, provide your email address and create a password.
Step 3. Complete Personal Details
Enter your full name, date of birth, PAN card number, and Aadhaar number. Then, choose a nomination for your account. You can add Nominee afterwards also.
Step 4. Upload Documents
Upload a clear scanned copy of your PAN card, passport-sized photograph, proof of address (Aadhaar card, utility bill, etc.) and a cancelled cheque or bank statement for bank account verification.
Step 5. Income Proof
You may need to submit income proof based on Zerodha’s requirements. This could be a salary slip, ITR, or bank statement.
Step 6. E-KYC Verification
Zerodha uses e-KYC for verification. You will need to provide your Aadhaar number and complete the biometric authentication process.
Step 7. Account Opening Charges
Pay the account opening charges via UPI or net banking to complete the process.
Step 8. Account Activation
Once your documents are verified, Zerodha will activate your Demat and trading account.
Tips for a Smooth Account Opening Process
- Ensure all documents are clear and legible.
- Keep your Aadhaar card linked to your mobile number for easy e-KYC.
- Double-check all the information you enter.
- If you face any issues, contact Zerodha’s customer support.
Important Points to Remember
- Aadhaar Linking: Ensure your mobile number is linked to your Aadhaar card for smooth e-KYC.
- Document Clarity: Upload clear and legible copies of documents.
- Income Proof: Be ready with your income proof as per Zerodha’s requirements.
- Account Activation: The account activation process might take a few days.
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Wrapping Up
That was all about how to open demat account in Zerodha. Opening a Demat account with Zerodha is an easy process that can be completed online in a matter of minutes. By following the steps outlined above, you can start your investment journey with ease. Remember to thoroughly understand the investment landscape before making any decisions as it might lead to financial losses.
FAQs About Opening Demat Account in Zerodha
How long does it take to open a Zerodha account?
The account opening process usually takes 2-3 working days.
What is BI ID in Zerodha?
BO ID stands for Beneficiary Owner Identification Number. It’s a unique 8-digit number assigned by CDSL to identify your demat account held with Zerodha.
Is it mandatory to have a trading account along with a Demat account?
Yes, a trading account is required to buy and sell shares. Zerodha typically opens both accounts simultaneously.
What is CNC in Zerodha?
CNC in Zerodha stands for Cash and Carry. It’s an order type used for buying shares with the intention to hold them for more than one day. Unlike intraday trading, CNC positions are not automatically squared off at the end of the day. Zerodha offers zero brokerage on CNC trades.
Can I open a joint Demat account with Zerodha?
Yes, Zerodha allows joint Demat accounts.
What is MIS in Zerodha?
MIS in Zerodha stands for Margin Intraday Square Off. It’s a product type for intraday trading where you can leverage funds for the day, but all positions must be closed before market closing time.