How to Open Demat & Trading Account in India (2025 Guide)

Demat & Trading Account 2025 theme

How to Open a Demat and Trading Account in India (2025 Step-by-Step Guide)

To invest in the Indian stock market, you need two essential accounts: a Demat Account to hold your shares digitally and a Trading Account to buy or sell them on NSE or BSE. Without these accounts, you cannot directly invest in equities in India.

This 2025 guide explains everything — the difference between Demat & Trading accounts, documents required, charges, top brokers, and a complete step-by-step process to open your account online.

Table of Contents

1. 1) What is a Demat Account?
2. 2) What is a Trading Account?
3. 3) Difference Between Demat and Trading Account
4. 4) Documents Required to Open Demat & Trading Account
5. 5) Account Opening & Annual Charges (2025)

1) What is a Demat Account?

A Demat Account (short for Dematerialised Account) is used to hold shares and securities in electronic form. When you buy shares, they are credited to your Demat account, and when you sell them, they are debited. It acts like a digital locker for your investments.

2) What is a Trading Account?

A Trading Account is used to place buy and sell orders in the stock market. It acts as a bridge between your bank account and Demat account. Without a trading account, you cannot transact on NSE or BSE.

3) Difference Between Demat and Trading Account

Feature	Demat Account	Trading Account
Purpose	Stores shares electronically	Enables buying/selling of shares
Analogy	Locker for shares	Shop for transactions
Linked To	Trading Account	Bank + Demat
Regulator	NSDL / CDSL	Stock Exchanges (NSE/BSE)

4) Documents Required to Open Demat & Trading Account

• PAN Card (mandatory)
• Aadhaar Card (for e-KYC)
• Bank Account proof (cheque/cancelled cheque, passbook)
• Passport size photograph
• Income proof (for derivatives/F&O trading)
• Signature (scanned copy)

5) Account Opening & Annual Charges (2025)

Charges vary depending on brokers. As of 2025:

• Account Opening Fees: ₹0 – ₹500 (many brokers offer free)
• Annual Maintenance Charge (AMC): ₹300 – ₹800 per year
• Trading Account Charges: Mostly free with Demat

Discount brokers like Zerodha, Groww, and Angel One offer low or zero account opening fees.

6) Step-by-Step Process to Open Demat & Trading Account Online

1. Choose a Broker: Select a SEBI-registered broker (like Angel One, Zerodha, Upstox, Groww).
2. Fill Application Form: Visit the broker’s website or app and click on ‘Open Demat Account’.
3. KYC Verification: Upload PAN, Aadhaar, photo, bank proof, and e-sign using Aadhaar OTP.
4. In-Person Verification (IPV): Some brokers ask for a short video or webcam verification.
5. Link Bank Account: Add your savings account for seamless fund transfer.
6. Account Activation: After verification, your Demat + Trading account will be active within 24–48 hours.

7) Offline Account Opening

You can also open an account offline by visiting the broker’s branch office or authorised partner. Fill physical forms, attach self-attested documents, and complete IPV in person.

8) Top Brokers in India (2025)

• Angel One: Full-service broker with research + advisory, free account opening offers.
• Zerodha: India’s largest discount broker, excellent trading platform (Kite).
• Groww: Popular app for mutual funds + stocks, beginner friendly.
• Upstox: Backed by Ratan Tata, competitive pricing, fast account opening.
• ICICI Direct / HDFC Securities: Bank brokers with 3-in-1 account integration.

9) Case Study: Angel One Demat Account

Angel One offers a free Demat + Trading account in 2025. Features include:

• Free account opening (₹0 charges)
• Flat ₹20 per trade across segments
• Free research reports + stock recommendations
• AI-based advisory (ARQ Prime)
• Trusted by 1 crore+ clients

Open Your Free Demat Account with Angel One
Start Now 🚀

10) FAQs

1) Can I open a Demat account without a PAN card?

No. PAN card is mandatory for opening a Demat and Trading account in India.

2) Can I have multiple Demat accounts?

Yes, you can open multiple accounts with different brokers, but each must be linked to the same PAN.

3) What is the minimum balance required?

No minimum balance is required in Demat. You only pay AMC charges if applicable.

4) Can students open a Demat account?

Yes, any Indian resident above 18 years can open a Demat account. Minors can open with guardian details.

5) Is Aadhaar mandatory?

Yes. Aadhaar-based e-KYC is the fastest way to open an account online.

6) Can NRIs open Demat accounts?

Yes, NRIs can open NRI Demat accounts with brokers authorised for NRE/NRO accounts.

7) Which is better: Full-service or Discount broker?

Beginners may prefer full-service brokers (Angel One), while experienced traders choose discount brokers (Zerodha).

8) How long does it take to open?

Online accounts get activated in 24–48 hours if all documents are valid.

9) What are AMC charges?

Annual Maintenance Charges (₹300–₹800) for maintaining Demat account.

10) Do I need both Demat and Trading account?

Yes. Trading is for transactions, Demat is for storage of shares.

11) Which broker is best for beginners in 2025?

Angel One, Zerodha, and Groww are the top beginner-friendly brokers.

12) Can I close my Demat account anytime?

Yes. You can submit closure form to broker after selling/transfer of holdings.

13) What if I don’t use my Demat account?

AMC will still be charged. Better to close inactive accounts to avoid penalties.

14) Are Demat accounts safe?

Yes, they are regulated by SEBI, NSDL, and CDSL. Very secure.

15) Can I link multiple bank accounts?

Yes, you can link more than one bank account for trading convenience.

11) Related Posts

• Day 11: Dividend Investing in India
• Day 12: How to Pick Multibagger Stocks
• Day 10: Top 10 Bluechip Stocks

Disclaimer: This content is for educational purposes only. Consult SEBI-registered financial advisors before investing. Stock market investments are subject to risk.