Demat account opening procedure with Upstox

If you’re looking to buy securities (like shares, mutual funds, or ETFs) online, a dematerialized account is absolutely essential. Apart from the obvious benefits it offers (it’s cheaper and faster), it’s also a requirement when you wish to register yourself with any brokerage.

How to open a Demat account

Before you get started on the Demat account opening procedure, select your broker. This choice could depend on a variety of factors – such as brokerage fees/charges (more on this below), the platform’s / user interface, and its customer service.

In today’s digital world, the way you apply for your account matters. Your broker is the one who’ll help you open a Demat account in the easiest way possible. Is it the traditional method involving paper forms? Or the new-age Aadhaar-based paperless online method?

We’ll lay them out here for you and let you figure out what’s easier.

Steps to open a Demat account

The online account opening method

In today’s digital world, there really shouldn’t be any reason for you to be filling out physical forms when almost the entirety of your information can now be stored digitally. Fortunately, some brokers have the online processing part figured out. Customers can sign up and complete the registration process online. As long as you have an Aadhaar card with your mobile number linked to it, you’re good to go!

• Head to the Upstox online Demat account opening page.
• Enter your basic details, and click Sign Up.
• Keep scanned copies (i.e. soft copies) of your documents (Aadhaar, PAN, Cancelled Cheque, and your latest bank statement) with you for when you are directed to upload them.
• Enter your Aadhaar details and the OTP you receive on your linked mobile number in order to verify your identity.

That should be it. Your Demat account should now be created.

Traditional/offline account opening process

• Your broker will hand you an account opening form – either when you’ve visited its office or if you’re meeting one of its employees.
• You will need to fill out this form, and attach a proof of identity and a proof of address. These proofs can be submitted using photocopies of appropriate documents.
• Once done, you’ll also be expected to sign an agreement with your broker. This document will state your responsibilities as a trader/investor, and that of your brokerage firms. Keep a copy of this document with you for future reference.
• Once your broker verifies and processes your documents, you’ll be given your account number, similar to how you receive a bank account number. This number is called the Beneficial Owner Identification Number (or BOID) or Unique Client Code (UCC) if you’re trading with Upstox.

You’ll also receive additional confidential data – such as a Login ID and key for accessing online portals and placing trades. Keep in mind that these transactions are likely to attract charges. You might incur some charges for using certain portals.

Demat account charges

There are multiple sorts of account charges you’re likely to come across – both during the time when you hunt for your preferred broker and when you’ve completed your registration process. Primarily, these charges can be classified into 3 types:

• Account Opening Fees
• Annual Maintenance Fee
• Transaction Fees

Account Opening Fees are the fees your broker will collect for the whole process of registering your Demat account. Not all brokers charge this fee, so you’re likely to come across a few where you would not be paying any such fees. Some online brokers might charge a nominal account opening fee to trade on different segments.

Annual Maintenance Fee is usually a prepaid amount that your broker collects to keep your account active throughout the year. While these charges are usually nominal (Rs 300 – 800 for the year), many brokers in the industry have now begun to charge zero fees here as well. The race to provide traders with the best rates and services has led to some intense competition in the brokerage industry landscape.

Transaction Fees refer to the charges your broker will levy for moving (debiting and crediting) your stocks or other securities to and from your dematerialized account. This can vary wildly across brokers depending on their target audience.

We charge minimal Demat account opening fees (Rs 150 + tax). An Annual Maintenance Fee of the same amount also applies to the account.

Upstox continues to keep costs low with the Transaction Fees as well – charging Rs 13+5.5+tax (Rs 5.5 being CDSL’s depository charges) – significantly lower than large traditional broking firms.

While discount brokerages charge low account opening fees and brokerage, that’s not to say they cut down on services. For example, it is entirely possible to open an account using the traditional paper method on Upstox as well. Head over to the forms section and download the Demat account opening form. You can choose the segments you want to trade on while opening your account. Fill out the forms, attach the required documents, and send them over via courier to this address:

30th Floor, Sunshine Tower,

Senapati Bapat Marg, Dadar (W),

Mumbai- 400 013

If you see the merits of a convenient and online Aadhaar-based registration, you’re welcome to get started with the online Demat account opening.

h Floor, Sunshine Tower,

Senapati Bapat Marg, Dadar (W),

Mumbai- 400 013

If you see the merits of a convenient and online Aadhaar-based registration, you’re welcome to get started with the online Demat account opening.