Want to open Demat account in Zerodha ? Well, Zerodha is one of the largest discount brokers in India who provides the best Demat and trading account facilities to its customers. Before you open your Demat and trading account at Zerodha, let’s understand them in detail.
Trading account: The trading account is created to execute trade i.e buying and selling of stock. It is also known as an investment account where you can keep your securities, cash and other holdings to undertake buying and selling of assets in the future.
Demat account: The Zerodha Demat account is used to store your financial securities in electronic form. In our country, the Demat account is usually maintained by two depository organizations including National Securities Depository Limited and Depository Services Limited.
Documents required to open Demat account in Zerodha
Whether you are opening your Zerodha Demat account in the online or offline mode, keeping the soft copies of documents always comes in handy. The procedure for opening a Demat account involves uploading the soft copies beforehand. Here is the list of important documents that you would need to open Demat and trading account at Zerodha:
- PAN card (the card should have a signature, or else it would not be considered valid).
- Aadhar card (The card should be linked with your mobile number).
- Bank account proof (The bank account proof will involve the front-page photo/scan copy of your bank passbook or cancelled cheque or online statement. In case you are submitting a cancelled cheque then it must consist of your printed name over it, or else it will not be accepted).
- Scanned photo or scanned copy of your signature on a piece of paper.
- Income proof (This is an optional document that will only be required In case you wish to trade in F&O or commodity. Income proof documents including recent salary slip or the six months bank statement or ITR.
Additional terms and conditions for opening Demat and trading account at Zerodha
- An active mobile number linked to your Aadhar card is necessary as it will be required to complete the esign-in/DigiLocker process through the OTP verification. In case your mobile number is not linked to your Aadhar card, then visit your nearest Aadhar Seva Kendra to get it done.
- While uploading your bank statement, make sure that it has a visible account number, IFSC code and MICR code printed on it. Blur characters can lead to the cancellation of the document.
- If you are uploading a check, then make sure that your name is clearly inscribed on it.
- Your signature should be done clearly on blank paper using a pen. The use of sketch pens, pencil, or marker can lead to its cancellation.
- To submit the income proof, you can use various documents including Form-16, latest 6-month bank statement, latest salary slip, net worth certificate from a CA, and income tax return acknowledgement.
Here are the Zerodha account opening charges:
The charges for Zerodha Demat account opening involve:
- Rs. 200 for Demat and trading account at Zerodha
- Rs. 100 for commodity account.
This amount can vary depending upon your preferences. In case, you wish to trade in both equity and commodity, then you will need to pay extra Rs 100 for the account opening. If you want to trade in just equity, then the Zerodha account opening charges will remain the same as before i.e. Rs 200 only.
You can open your Demat and trading account at Zerodha in two ways including online or offline mode. In online mode, you can open your Zerodha Demat account in just 15 minutes, if you are having valid documents, while in offline mode, the procedure might take a longer time.
How to open your online Demat and trading account at Zerodha?
Step 1: Visit the Zerodha website through your browser and click on the link ‘Open your account’. It will direct you to Zerodha Demat account opening page.
Step 2: Enter your mobile number in the signup box and you will receive an OTP on your number which will be valid only for the next 30 minutes. Enter the same OTP to verify your number.
Step 3: Now enter your pan card number and date of birth (D.O.B) in the section provided.
Step 4: Once you have entered all the details, now you need to complete your Zerodha Demat account opening payment, which is a one-time investment. For equity and commodity, you will need to pay Rs. 200 and Rs. 100 respectively. However, a commodity account is optional. Payment for this account depends on your trading preference. You can make the payment through any mode including UPI or net banking/card payment.
Step 5: Once you have made the payment, the next step is to connect your aadhar details through Digilocker. It is a government initiative that involves sharing your aadhar details in a highly secured way. You are required to create a ‘Digilocker: Towards Paperless Governance’ and link your aadhar details with it. Now click on ‘Connect to digilocker’ and you will be redirected to the signup page.
Sign up for the digilocker account using your mobile number. While signing up, you will receive an OTP on your aadhar linked mobile number. Enter the OTP to complete verification and click on continue. Now click on allow to share a copy of your aadhar to Zerodha and your details will appear on the screen.
Step 6: After the aadhar verification, you will need to enter your details such as your occupation, father’s name, mother’s name and more. Once you are done, click on continue.
Step 7: Now you need to link your bank account by filling in some important details such as bank account number, bank name, branch’s IFSC code and MICR code. Make sure to select all the options, cross-check and then hit the continue button.
Step 8: Next step is the IPV verification via webcam/phone. IPV or In-person verification is the procedure where you are required to get your documents and other details verified by the depository participant as per the law by SEBI. Here, you need to allow the camera on your browser or phone to begin the IPV process.
Step 9: In the next step, an OTP will be displayed on the screen. You are required to write down the OTP on paper and then hold it in front of your phone/webcam to click a picture.
Step 10: Once you have taken the picture, upload all the relevant documents including bank details, PAN card, signature, and income proof. Uploading the income proof is required only if you wish to trade futures & options, currency and commodity. Now click on continue and you will be redirected to the equity eSign page.
Step 11: Now click on the eSign Equity and you will be redirected to the next page.
Step 12: In the next step you have to verify your email. You can choose any option either Google login or email login. In case you select the email login option, then enter your email address correctly. Once you have entered, you will receive an OTP on the same mail. Enter the OTP to acquire your registered email. By verifying your mail, you receive all your future correspondence from Zerodha from the same place.
Step 13: A new page with a ‘SIGN NOW’ option will appear on your screen. Click on the option and you will be redirected to the NSDL page.
Step 14: Once the NSDL page appears, click on the check box stating ‘I hereby’ on the top left corner of the page. Now enter your aadhar number at the bottom of the page and click on send OTP. Enter your OTP for the last time and verify.
Step 15: Now a green background will appear on your screen with a message stating ‘you have successfully signed the document.’ By this step, you have now completed the esign process for the equity segment.
Step 16: A tick mark will appear o the equity segment which means that you have successfully signed up for the segment. Now you need to download the eSigned document on the page.
Step 17: This is an optional step for those who wish to enable the commodity segment on their account. To activate the segment, they need to eSign again. Here you need to click on the commodity eSign, which will redirect you to the NSDL page. Now you have to repeat the above procedure by clicking on the check box on the top left corner and enter your aadhar number. You will receive an OTP on your aadhar linked mobile number. Now enter the OTP for the verification and your documents will be eSigned for the commodity segment as well.
Step 18: Once you have completed all the above steps, a congratulations message will appear on your screen, which means your trading and Demat account at Zerodha has been generated.
How to open Demat account in Zerodha in Offline Method?
Zerodha Demat account opening can be done through offline mode as well. However, it is a time-taking procedure and costs more as compared to the online mode. Here are the offline Zerodha account opening charges:
- Rs. 400 for the trading and Demat account at Zerodha.
- Rs. 600 for the trading, Demat & commodity account.
In the offline procedure, you will need to download the application forms from the Zerodha website, take a printout, fill in all the given details and sign it.
Here is the list of the application form that you need to download, fill and courier to get your Demat account opened:
- Application form: Trading account & Demat account-Equity segment.
- Application form: Commodity segment.
- POA (Power of Attorney)
- ECN (Electronic Contract Note)
- Nomination form: This is optional in case you want to appoint a nominee in your trading and Demat accounts such as your father, mother, or wife.
Benefits to open Demat Account in Zerodha
Zerodha has emerged to be the most trusted and reliable discount broker in India due to its amazingly lower prices and dynamic strategies that enable the customers to fulfil their trading and investment purposes. Zerodha is counted among the top broker firms which are famous for providing its customers with enormous benefits.
Wide network: Being one of the most sought-after broking firms, Zerodha has successfully established its recognition in every corner of the world. Currently, Zerodha is the most promising and chosen brokerage firm among the capital market fraternity and the traders.
Trading platforms: Zerodha has changed the meaning of discount brokerage in India. It has innovated the idea of trading platforms cheap brokerage plans and successfully implemented it. Zerodha is responsible for establishing easy and profitable trading through the use of innovative trading platforms and dynamic technologies. The wide variety of Zerodha’s trading platforms includes KITE, smallcases, Zerodha varsity, Sensibull and more.
Brokerage: Zerodha is well-known for its cheap brokerage prices around the country. Their seamless charges for brokerage per order stand at Rs. 20 for the whole transaction, while zero charges for the equity delivery transactions making it the best deal for a lot of customers.
Also don’t forget to read our article about upstox vs zerodha comparison where we have provided a detailed comparison between the two best stock brokers in India.