Can I open two demat account with different brokers?
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- Updated On:27-Sep-2022
- Replies:1
Short Answer
Yes, you can open two demat accounts with different brokers. But, you must strictly adhere to the KYC requirements, which include providing a PAN number and providing proof of identity and address as set forth by SEBI, for each account.
Detailed Answer
A demat account is the first requirement for starting the investment journey. Investors can hold their securities in electronic or dematerialized form through a demat account.
Opening a demat account is now very simple, and there are numerous brokers with a variety of offers available in the markets. However, some people are unsure as to whether they can open two demat accounts or not.
Can I open two demat account with different brokers?
Yes, you can open two demat accounts with the same name, but with different DPs (Depository Participant) and with different brokers only. It is not possible if you want to open with the same broker.
While opening two demat accounts you must strictly adhere to the KYC requirements, which include providing a PAN number along with proof of identity and address in accordance with SEBI's guidelines, for all of the accounts.
However, it is important to remember that creating multiple demat accounts has advantages as well as disadvantages, so you must consider both before opening a second demat account.
Advantages of Opening two Demat accounts
- You can effectively separate your portfolio by having two demat accounts. You can keep separate portfolios for trading and investing; for example, long-term investments & short-term trading in different demat accounts.
- Let's suppose one broker has robust technical analysis tools and the other has low charges, then you can get benefit from both by opening demat accounts with them.
- Many times it has been seen that many discount brokers' server goes down, so in that case, if you have two demat accounts and you want to place some orders, then you can use another one for that.
Disadvantages of Opening two Demat accounts
-Two demat accounts opened simultaneously will result in additional changes, such as annual maintenance fees and others. As a result, your overall expenses will go up.
-Managing two demat accounts makes it difficult to keep track of all the investments you have made.
-Having two demat accounts may incite you to make multiple trades, which could lead to eventual financial loss if things do not work out in your favor.
Opening two Demat account with different Stock Brokers India
You can open two demat accounts or even more with different brokers, but you should consider the pros and cons before doing so to prevent problems in the future.
Now, if you wish to enter the stock market, you can open a quick online account with Zerodha, the best stock broker in India.
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Discussion (0)
You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.
Yes, one can have multiple demat accounts, but there is a restriction: you cannot open more than one demat account with the same depository participant (DP) or broker. Instead, you can open other demat accounts with different brokers.
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Yes, a demat account is completely safe if it is opened with a SEBI registered broker. This is because all SEBI registered brokers are regulated and monitored by SEBI.
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