As more people learn about the stock market and the power of compounding, more people want to become investors in the stock market. Compared to the days that pre-date the internet, investing in the stock market was a complicated and laborious process. However, today, you can invest in the market from the comfort of your phone using your smartphone. You indeed must have come across the numerous trading apps on your mobile storefront. To invest today, all you need to do is download a trading app and then open demat account. So, let us learn what you must do to open a demat account using a trading app.
Demat Account
Before we learn how to get a demat account, let us understand why we need one. A demat account is a prerequisite if you wish to invest in the stock market today. That is because the demat account is key to online trading. It is possible to trade using your phone today because shares exist in the electronic form, also called dematerialized form. A demat account stores dematerialized shares and keeps them protected after you have made an investment. In other words, when you buy shares, they get credited to your demat account.
How to Get a Demat Account?
The title and earlier statements make it evident that you can get a demat account through a trading app. However, that raises the question of which trading app you choose. There are multiple trading apps, but you would only want the one that qualifies as the best trading app.
As a potential stock market investor, you must know that demat account services are offered by the Indian depositories—the NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). However, a stockbroker recognized as a depository participant functions as the intermediary and makes demat accounts services available to the regular investor. The stockbroker also provides investors with a trading platform to make stock market transactions. A trading platform designed especially for mobiles is what you see in the form of a trading app.
Now, there are several brokers with the licence to provide demat accounts. Hence, the broker tries to distinguish themselves and stand out by offering unique other benefits. They attempt to cater the needs of different investor demographics. So, you would have to research to find out which broker is best able to fulfil your requirements. The leading brokers provide value-added services and the best trading app. Their apps are easy-to-use and feature-rich to help you during your investment journey.
Since the broker provides the trading app and the demat account, you can very well head to a broker’s website to get ahold of both. However, the leading brokers offer you multiple ways to open a demat account. Moreover, many people prefer using apps on their mobile due to the convenience factor. Hence, it is possible to download the trading app and then open the demat account.
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Steps to Open a Demat Account Through The Trading App
To open a demat account using a trading app, first, you select research and download the best trading app. Next, you open the app and choose to open an account. Clicking will redirect you to a screen where you have to enter your mobile number. Some brokers like Kotak Securities that offer more than one trading plan also give you the option to choose your plan. The broker verifies your mobile number, and you land on the next page, where you enter basic personal details like your name and date of birth. After that, you are required to submit online copies of your documents to verify those details.
The list of documents you will have to submit to open a demat account is as follows,
- PAN card
- Photograph (in the form of a selfie)
- Proof of Identity is a government-registered document with your photograph, for example, your Aadhaar card or driver’s licence.
- Proof of Address is a government-registered document with your address, like your passport. A utility bill also works.
- Income proof document could be your income tax slip or salary slip
- A cancelled blank cheque as Bank Proof
Submit the documents and e-sign. The stockbroker will verify your information and provide your demat credential via email.
Conclusion
Thanks to continuous advancements and adoptions of technology, the process of investing has simplified. Whether you open demat account through the trading app or website, the process is straightforward and almost identical. Once you open your demat account, you can use your trading app to start investing. The best trading apps provide you with real-time data, monitoring tools, and several indicators to analyse stocks
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