Can I open 2 demat accounts with different stock brokers?
- Asked By
- Updated On:28-Sep-2021
- Replies:1
Short Answer
You can open more than one demat account as long as you open them with separate depository participants. It is completely legal to own multiple demat accounts but you cannot have more than one account with a stockbroker.
Detailed Answer
Why is a Demat account required?
A demat account is required to transact in shares, bonds, mutual funds, etc. In order to buy and sell any digital securities, you will require a demat and trading account. A Demat account is also used to buy and hold shares for the long term as a long-term investment.
Can you open more than 1 Demat accounts?
The answer is yes. You can open two or more demat accounts as long as the stockbroker or the depository participant (DP) is different. This means that you cannot open more than one demat account with a single stockbroker. There are some more regulations that you will have to follow while opening your account. Your PAN Card (Permanent Account Number) is a mandatory document required at the time of account opening.
As per SEBI, you can open multiple demat accounts but you will have to incur the additional maintenance charges of the Demat accounts.
Benefits of having 2 or more Demat accounts
Having two or more demat accounts can be beneficial in some cases.
- You can diversify your portfolio into different asset classes using different demat accounts. You can additionally use a specific account for a certain purpose. For example, you can use one account only for trading whereas you can employ the other as investments. In this way, you can separate your requirements into various accounts and use them accordingly.
- You can moreover have a demat account with a full-service broker and receive research reports and also other facilities offered by them.
Limitation of having multiple accounts
Having more than one demat account has some negatives as well.
- Multiple accounts may cost a lot of money depending on your broker and types of uses. For small investors, having more than 2 accounts may not be feasible in the long run.
- You will also have to stay active in all of your accounts to prevent freezing of the account. This can be time-consuming for passive investors who don’t use their accounts much.
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
To login Zerodha Kite, you have to enter your Login ID and password. Before that, you must have a demat and trading account with Zerodha to have complete access to its stock trading platform.
Yes, an Overseas Citizen of India (OCI) can invest in Indian stock market. Let's know ways how an OCI can start investing in Indian stocks from another country.
When talking about the best stock broker in India, we cannot rule out Zerodha. It is the market leader in bargain stockbroking, is premised in Bengaluru, and accounts for more than 15% of total retail trading activity in the country. Mr. Nitin Kamath formed the leading brokerage firm in 2010 Kamath, and it now has a customer base of over 6 million.
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.
Zerodha is an Indian discount stock broker which provides various services to its customers. Zerodha is a paid platform with Rs 200 as account opening charges and their brokerage rates are different for each segment which are discussed in detail.
The best stocks for college students to invest in in India are those with strong fundamentals and high dividend yields, such as Reliance Ltd., ITC Ltd., and Infosys Ltd.
Bangalore based online discount broker Groww was found in 2016 and provides plenty of trading and investment opportunities. Users can invest in mutual funds, currency, derivatives, equity, and more. the investment opportunities are backed with guidelines set by NSE, BSE, and SEBI.
Learn the basic necessities to trade in stock market in India. Easy stock trading tips for a hassle free experience as a trader or an investor. All you require is an internet connection, laptop or smartphone, active bank account, demat and trading account and there you do, trading in the stock market is simple as booking the movie tickets online.
To close the Prostocks demat account, you need to submit the Prostocks demat account closure form in offline mode. It cannot be closed in online mode.