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How to open a demat account, which documents you need, and which broker is best — a complete guide for the Indian stock market.
Published by The Retail Trader · AUG 04, 2026 · Features
How to open a demat account, which documents you need, and which broker is best — a complete guide for the Indian stock market.
A demat account is the digital locker for your shares. Just as money stays in a bank account, shares stay in a demat account.
Simple definition: > Demat = Dematerialized account. Instead of physical shares, you store shares in digital form.
Demat vs Trading Account:
• What it is — Demat Account: Locker for shares, Trading Account: Interface for buying/selling
• What it stores — Demat Account: Shares, bonds, MF units, Trading Account: Nothing (execution only)
• Analogy — Demat Account: Bank vault, Trading Account: ATM card
• Necessary? — Demat Account: Yes, Trading Account: Yes
You need both to trade in the share market. These days brokers provide both together.
Documents:
• PAN Card — Required?: ✅ Mandatory, Notes: Demat will not open without PAN
• Aadhaar Card — Required?: ✅ Mandatory, Notes: For address proof
• Bank Account — Required?: ✅ Mandatory, Notes: A linked bank account is needed
• Passport Photo — Required?: ✅ Required, Notes: Digital upload
• Signature — Required?: ✅ Required, Notes: Sign on white paper, scan/upload
• Income Proof — Required?: Optional, Notes: For F&O trading (salary slip/ITR)
• Cancelled Cheque — Required?: Optional, Notes: For bank verification
Eligibility:
• Age: 18+ years
• Nationality: Indian residents, NRIs can also open one
• PAN: Mandatory
Keep these seven points in mind:
• Zerodha — Account Fee: ₹200 (one-time), Brokerage (Equity): ₹20 flat/order, Brokerage (F&O): ₹20/order, Best For: Overall best
• Groww — Account Fee: Free, Brokerage (Equity): ₹20 flat/order, Brokerage (F&O): ₹20/order, Best For: Beginners
• Angel One — Account Fee: Free, Brokerage (Equity): ₹20 flat/order, Brokerage (F&O): ₹20/order, Best For: Full-service
• Upstox — Account Fee: Free, Brokerage (Equity): ₹20 flat/order, Brokerage (F&O): ₹20/order, Best For: Budget
• 5paisa — Account Fee: Free, Brokerage (Equity): ₹20 flat/order, Brokerage (F&O): ₹20/order, Best For: Low cost
• ICICI Direct — Account Fee: Free, Brokerage (Equity): 0.55%, Brokerage (F&O): ₹20-50/order, Best For: Bank integration
• HDFC Securities — Account Fee: Free, Brokerage (Equity): 0.50%, Brokerage (F&O): ₹20-50/order, Best For: Bank integration
Beginner recommendation: Start with Groww or Zerodha. Both are free or cheap, and the apps are good.
Via Zerodha (Online — 15 Minutes):
• Go to the Zerodha website — zerodha.com
• Click "Sign Up"
• Enter your mobile number → verify the OTP
• Enter your PAN number → verify your DOB
• E-sign with Aadhaar (via Aadhaar OTP)
• Enter bank details (account number, IFSC)
• Upload your photo
• Upload your signature
• Complete video verification (2-minute video call)
• Make the payment (₹200)
• Done! The account is active within 24-48 hours
Via Groww (Online — 10 Minutes):
• Download the Groww app
• Select "Open Demat Account"
• Mobile number → OTP
• PAN → DOB
• Aadhaar e-sign
• Bank details
• Upload a selfie
• Video verification
• Done! Active the same day
Via Bank (Offline — 1 Week):
• Visit a bank branch (ICICI, HDFC, SBI)
• Fill in the form
• Submit documents (PAN, Aadhaar, photo)
• The account opens in 3-7 days
• Brokerage will be higher than with online brokers
For Beginners:
• Simple app — Groww
• Low brokerage — Zerodha
• Research reports — Angel One
• Bank integration — ICICI Direct
• Free account — Groww/Upstox
For Active Traders:
• Fast execution — Zerodha
• Advanced charts — Zerodha (Kite)
• API access — Zerodha/Angel One
• F&O trading — Zerodha
• Algo trading — Zerodha (Streak)
Keep these eight points in mind:
• Account opening — ₹0-200
• Annual maintenance (AMC) — ₹0-300/year
• Brokerage (delivery) — ₹0-20/order
• Brokerage (intraday) — ₹20/order
• Brokerage (F&O) — ₹20/order
• STT (government tax) — 0.1% (delivery)
• GST — 18% on brokerage
• Stamp duty — Varies by state
Total cost per trade: Brokerage + STT + GST + Stamp duty ≈ ₹25-50 per ₹1 lakh trade
Low brokerage is good, but also look at platform stability, customer support and app quality.
One broker is enough. 3-4 demat accounts = unnecessary charges (AMC).
Demat = storage, Trading = execution. They are two separate concepts, but brokers provide both together.
Never give your broker login/password to anyone. Do not share your OTP either.
If you are not using your demat account, close it. AMC is charged even if there is no trading.
Keep these five points in mind:
• Email your broker (account closure request)
• Fill in the form (online or offline)
• Clear all holdings (sell all shares or transfer them)
• Pay any outstanding dues
• The account closes in 7-15 days
Keep these points in mind:
• 📌 DEMAT ACCOUNT QUICK REFERENCE
• WHAT IS IT:
• 📊 Digital locker for shares
• 📊 You need both a demat and a trading account
• 📊 Provided by a broker (Zerodha, Groww)
• DOCUMENTS NEEDED:
• 📋 PAN Card (mandatory)
• 📋 Aadhaar Card (mandatory)
• 📋 Bank Account (mandatory)
• 📋 Photo + Signature
• 📋 Income proof (for F&O)
• BEST BROKERS:
• 📊 Beginners → Groww (free, simple)
• 📊 Overall → Zerodha (₹200, best platform)
• 📊 Bank integration → ICICI Direct
• 📊 Budget → Upstox (free)
• HOW TO OPEN:
• 1️⃣ Go to the broker's website/app
• 2️⃣ Verify mobile + PAN + Aadhaar
• 3️⃣ Enter bank details
• 4️⃣ Upload photo + signature
• 5️⃣ Video verification (2 min)
• 6️⃣ Payment (₹0-200)
• 7️⃣ Active within 24-48 hours
• CHARGES:
• 💰 Account opening: ₹0-200
• 💰 AMC: ₹0-300/year
• 💰 Brokerage: ₹20/order
• 💰 STT: 0.1% (delivery)
• 💰 GST: 18% on brokerage
• AVOID:
• ❌ Keeping multiple accounts
• ❌ Sharing credentials
• ❌ Keeping an inactive account (AMC will be charged)
Keep these five points in mind:
• What Is the Share Market?
• What Is the Stock Market?
• What Is Trading?
• What Is a Mutual Fund?
• Nifty 50 Companies List 2026
The Retail Trader — educational market analysis. Not investment advice.
This article is educational only — no buy or sell recommendation, no claim of guaranteed returns, and no advisory. Rules, rates and mechanics change from time to time at the exchange, SEBI and RBI, so verify every number yourself with your broker or an official source.