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What Our Users Have to Say
5paisa's FnO is a game changer! The live option data which includes 16+ greeks in real time, gives me the edge.
Abdul Razzak Khan
- 2024-04-24
- Google playstore
I am impressed with the IPO details 5paisa provides and ease of applying for one.
Vipin Dasgupta
- 2024-04-21
- Google playstore
5paisa's App executes trades seamlessly, and the user interface is intuitive, allowing me to focus on what really matters.
Sakib Khan
- 2024-04-10
- Google playstore
5paisa's integration of the FnO 360's stats section is a goldmine for derivatives traders like myself, with multiple dashboards offering in-depth insights, I can make more informed decisions quickly. And its one-tap rollover feature is a lifesaver for managing futures positions efficiently.
Ashok Kumar
- 2024-04-15
- Google playstore
The pre-defined strategies in the 5paisa app makes executing trades a breeze, and the bulk order placement from the option chain saves me valuable time.
Ruchi Shah
- 2024-04-26
- Google playstore
What is a Demat Account?
A Demat Account, also known as a Dematerialized Account, is an electronic platform that lets you keep financial products in electronic form, such as bonds, mutual funds, shares, and exchange-traded funds (ETFs). Stocks are deposited to your Demat account at purchase, and securities are deducted from it upon sale. For a more seamless trading experience, you may select between a 3-in-1 account that combines a trading account with your bank account and a separate Demat account.
Types of Demat Account
Here’s a look at different types of Demat accounts that cater to various investors’ needs:
- Regular Demat Account
This is the most popular form of Demat account used by Indian citizens to trade equities, shares and securities. Futures and options trading often necessitate the use of a trading account. Service providers charge an annual maintenance fee (AMC) for this sort of account. However, SEBI has developed a Basic Services Demat Account (BSDA) for smaller investors, which reduces or eliminates AMCs based on investment amount, making it more cost-effective for individuals with little holdings.
- BSDA - Basic Service Demat Account
The Basic Services Demat accounts are perfect for beginner or small investors. This account, meant for assets worth under ₹2 lakhs, offers low maintenance fees and is a cost-effective solution for new investors.
- Repatriable Demat Account
This sort of Demat account is designed for Non-Resident Indians (NRIs) and allows them to invest in the Indian stock market as well as move cash abroad. It is connected to an NRE (Non-Resident External) account, which allows NRIs to repatriate up to one million US dollars each year.
- Non-repatriable Demat Account
For NRIs, this account is connected to an NRO (Non-Resident Ordinary) account. However, unlike the repatriable account, monies cannot be moved out of India. This account allows NRIs to invest in the Indian stock market while keeping their funds within the country.
How to open a Demat Account?
Opening a Demat account with 5paisa is simple and convenient. Here’s how you can get started in just a few easy steps:
- Download the 5paisa app
Visit the Apple App Store or Google Play Store and download the 5paisa app. This app will guide you through the free Demat account opening process.
- Select 'Open Demat Account' Option
Once inside the app, choose the 'Open Demat Account' option to initiate the process.
- Get Assistance from 5paisa Executive
After selecting the option, a dedicated 5paisa executive will contact you to help you through the process and answer any questions.
- Submit Documents and Verify KYC
Follow the guidance provided to submit your documents and complete your KYC (Know Your Customer) verification. Once done, your Demat account will be ready for trading!
Documents Required to open Demat account
To open a free Demat account, you’ll need to submit some basic documents. Here’s a quick checklist:
- Proof of identity
Government-issued ID like a passport, Aadhaar, driving license, or voter ID card.
- Proof of address
Recent utility bill, passport, Aadhaar, or even your spouse’s address proof.
- Proof of income
Required for certain transactions like derivatives trading. This could include salary slips, income tax returns, or bank statements.
- Proof of bank account
Submit a canceled cheque or a recent bank statement to link your bank account with the Demat account.
- PAN card
Essential for tax purposes and to monitor your trading activity.
- Photographs
Depending on the broker, you might need to submit 1-3 recent passport-sized photos.
- Additional documents for specific entities
If you’re opening the account as an NRI, company, or HUF (Hindu Undivided Family), you may need to provide extra documents.
Why open Demat Account with 5paisa?
Here’s why opening a Demat account with 5paisa ensures a smooth, cost-effective, and rewarding trading experience:
- Flat Brokerage Fee
Enjoy the benefits of trading with a flat ₹20 brokerage fee, making 5paisa one of the most cost-effective platforms.
- User-Friendly Interface
5paisa’s simple and intuitive platform makes it easy to navigate the financial markets and trade with confidence.
- Quick Account Setup
Get started quickly with Aadhaar, eKYC, and PAN-based account setup for a hassle-free onboarding experience.
- Stay Informed
Get real-time updates, market news, and stock filters to make better, more informed investment decisions.
- Accessible Trading
Easily trade on mobile with seamless access via Android, iOS, or web platforms.
- Diverse Investment Opportunities
Open doors to digital trading with a variety of options like IPOs, mutual funds, stocks, and more—all accessible through your Demat account.
Frequently Asked Questions
A Demat Account is crucial for seamless online trading. It enables investors to convert physical shares into a dematerialized format, securely holding them electronically. Beyond shares, a Demat Account accommodates assets such as bonds, ETFs, mutual funds, gold bonds, and similar securities, each with a unique ISIN number.
Opening a Demat Account and Mutual Fund Account with 5paisa incurs zero account opening charges. This transparent approach ensures that investors can initiate their investment journey without upfront costs, making the platform more accessible and investor-friendly.
The activation process is remarkably swift if you open an account online with 5paisa. Once your documents undergo successful verification and the e-sign process is completed, your account will be activated within 1 hour. A welcome email will promptly follow, confirming the successful activation of your account and enabling you to commence your trading activities without unnecessary delays.
Dematerialization, or Demat, is converting physical copies of shares and certificates into a digital format. This transition allows investors to manage their securities electronically, offering a secure and streamlined approach to trading. It reduces the risk associated with physical documentation and aligns with the modern and efficient practices of the financial markets.
You can open an All-in-one Investment Account, seamlessly integrating a Trading Account, Mutual Funds, and a Demat Account. This comprehensive choice is ideal for those seeking a holistic investment approach, combining direct stock investments and mutual funds. Alternatively, you can opt for an Only Mutual Fund Account if your investment focuses exclusively on mutual funds, providing tailored solutions to meet diverse investor preferences.
5paisa is inclusive and accommodates various account holders, including individuals, corporates, partnership firms, trusts, Hindu Undivided Families (HUF), and Limited Liability Partnerships (LLP). This broad inclusivity ensures that a wide spectrum of investors can leverage the benefits of a Demat Account and participate in the financial markets.