How to Open a Demat and Trading Account at Zerodha ?
How to open a demat and trading account at Zerodha? When I first started investing, I used ICICI direct for my demat and trading account. Although I was happy with the facilities and platforms provided by it, I soon realized that ICICI was very expensive.
Many times, profits were killed by the brokerages in ICICI direct. The worst thing was paying too much of brokerage even when you were selling the stock at a loss.
Then I asked for feedback from my friends who were using SBI Smart and HDFC securities. They both were also paying high brokerages and suggested not to go with it.
Finally, I opened my second demat and trading account at ZERODHA.
Zerodha is the biggest discount broker in India with over 5+ lakhs customers. It has a daily turnover of over Rs. 9,000 crores on NSE, BSE, MCX, and MCX-SX. The charges offered by Zerodha are nominal and the trading platform provided by it is also decent.
It charges brokerage of 0.01% or Rs 20 per executed order, whichever is lower, irrespective of a number of shares or their prices.
This is way cheaper compared to ICICI direct which asked a brokerage of 0.5% on each transaction. If you buy stocks for Rs 50,000 in ICICI direct, then you have to pay a brokerage of Rs 250 (On the other hand, Zerodha will ask for only Rs 20).
Further, as this amount is charged on both sides of the transaction (buying & selling), hence you have to pay a total of Rs 500 for the complete transactions (way too expensive than Zerodha).
In short, if you are new to the investment world, I would recommend opening accounts in discount broker such as Zerodha so that you can save lots of brokerages.
If you need help in opening your stock brokerage account, feel free to check out this awesome website- Nifty Brokers.
Why should you open a demat and trading account at Zerodha?
If you are still confused why you should open a demat and trading account at Zerodha, then here are top 9 reasons:
- Rs 0 (FREE) for equity delivery trades and Rs 20 or 0.01% whichever is lower per executed order for everything else
- Same pricing for across all exchanges
- No upfront fee or turnover commitment
- Z-Connect, interactive blog, and portal for all your queries
- Over 3,00,000 happy customers, averaging a daily turnover of over Rs. 9,000 crores
- 300+ dedicated support team to ensure the fastest turnaround time for your queries via email or phone
- Trading, charting, and analysis, all rolled into one next-generation desktop platform Pi.
- Minimalistic, intuitive, responsive web-based trading platform Kite
- Average exchange margin utilization of 55% vs. industry average of 70%—lower risk.
How to open a demat and trading account at Zerodha?
Documents required to open a demat and trading account at Zerodha.
Here are the documents required to open a demat and trading account at Zerodha. I will recommend keeping photocopies of all these documents ready before you apply for opening the accounts:
- PAN CARD
- Aadhar Card
- 2 Passport size photos
- Canceled cheque/ Saving bank account passbook
Account opening charges at Zerodha
Here are the account opening charges at Zerodha
Demat and Trading Account: Rs 300
Commodity Account: Rs 200
Demat and Trading Account: Rs 300
Commodity Account: Rs 200
If you want to trade both equity and commodity, then you need to pay an account opening charge of Rs 300+Rs 200 = Rs 500.
However, if you want to trade just in equity (stocks), then you need to pay the charge of Rs 300 only.
Read more here: https://zerodha.com/z-connect/zerodha/open-an-account/account-opening-documentation-charges
Now, there are two ways by which you can open a demat and trading account at Zerodha. I have named them as follows:
- The easy way
- Do-it-yourself way
The easy way:
As the name suggests, you do not have to do much if you follow this method. Here are the steps involved in this method:
STEP 1: Go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the link.
STEP 2: Fill the details- your full name, mobile and email and click on ‘CALL ME BACK’.
STEP 3: You will receive a call from Zerodha local representative, and he/she will book a timing to meet with you to get the account opening form signed and collect the documents from you.
STEP 4: You have to pay the account opening charge by Netbanking or card payment.
STEP 5: After submitting the documents, your demat and trading account will be opened in 4-7 days.
STEP 2: Fill the details- your full name, mobile and email and click on ‘CALL ME BACK’.
STEP 3: You will receive a call from Zerodha local representative, and he/she will book a timing to meet with you to get the account opening form signed and collect the documents from you.
STEP 4: You have to pay the account opening charge by Netbanking or card payment.
STEP 5: After submitting the documents, your demat and trading account will be opened in 4-7 days.
Do-it-yourself way:
In this method, you can open a demat and trading account at Zerodha online.
It hardly takes 30 min to complete your demat and trading account procedures and your account will be opened within a day.
It hardly takes 30 min to complete your demat and trading account procedures and your account will be opened within a day.
This is a good option to save time and if local Zerodha representative is not available in your area.
However, there is a pre-requisite to open a demat and trading account at Zerodha using this online method.
You need to have your KRA registered.
A KYC Registration Agency (KRA) is an agency registered with SEBI under the Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Regulations, 2011. The KRA maintains KYC records of an investor centrally, on behalf of SEBI registered capital market intermediaries.
Read more here: https://www.cdslindia.com/downloads/faq/KRA%20-%20Q%20%20A.pdf
If you already have another demat account on any of the online brokers, then your KRA will be registered.
You can check your KRA status using your PAN Card on the following websites:
In case, you do not have your KRA registered, then go with method 1- ‘The easy way’ described above.
Otherwise, if you have your KRA already registered, you can proceed with online application:
Here are the steps involved to open a demat and trading account in Zerodha online:
STEP 1: Go to Zerodha website and click on ‘OPEN AN ACCOUNT’. Here is the link.
STEP 2: Fill the details- your full name, mobile and email and click on ‘CONTINUE TO SIGN UP’.
STEP 3: Fill the PAN CARD and Aadhar Card Details.
STEP 4: Pay the account opening charges using net banking or card payment.
STEP 5: Upload the Cancelled cheque/Bank statement to verify your saving account details.
STEP 6: E-sign the documents using the OTP received on your Aadhar card registered mobile.
STEP 7: Sign off the application.
STEP 8: You will receive the completely filled application form and other details on your registered email address.
STEP 9: Next, you will receive your CLIENT-ID and Password after a day of registration with the instructions on how to log in.
STEP 10: In the same email, you will receive documents on Power of Attorney (POA) and nomination (in case you want to make a nominee for your account). You need to take the print out of the documents, fill it and send it to the following address.
STEP 2: Fill the details- your full name, mobile and email and click on ‘CONTINUE TO SIGN UP’.
STEP 3: Fill the PAN CARD and Aadhar Card Details.
STEP 4: Pay the account opening charges using net banking or card payment.
STEP 5: Upload the Cancelled cheque/Bank statement to verify your saving account details.
STEP 6: E-sign the documents using the OTP received on your Aadhar card registered mobile.
STEP 7: Sign off the application.
STEP 8: You will receive the completely filled application form and other details on your registered email address.
STEP 9: Next, you will receive your CLIENT-ID and Password after a day of registration with the instructions on how to log in.
STEP 10: In the same email, you will receive documents on Power of Attorney (POA) and nomination (in case you want to make a nominee for your account). You need to take the print out of the documents, fill it and send it to the following address.
Address:
Zerodha, #153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase,
Bangalore – 560078
Opp. Clarence Public School,
J.P Nagar 4th Phase,
Bangalore – 560078
In case, you are nominating someone, also attach an id-proof (Aadhar card, voter id, driving license etc of that person) in the same parcel before sending.
Although you can start trading from the day you receive your client-id and password, nevertheless, do send the POA and nomination documents as soon as possible.
If your POA has not been received by Zerodha, then you won’t be able to sell the stocks (however, you will be able to buy stocks). Hence, do fill and send the documents as soon as you can.
NOTE: In case you started your online application form, and weren’t able to complete it at that time, continue the application by logging here. Click on ‘Already started your application? Login here’.
Once your account is open, you can log in to this link or use the KITE app on your mobile.
That’s all. These are the steps to open a demat and trading account at Zerodha.
I will recommend using the first method as it is simple. The second one is good if you have all the documents ready and you cannot get in touch with the local Zerodha representative in your town.
I hope this post on ‘How to open a demat and trading account at Zerodha?’ is useful to the readers.
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