Demat Account: Demat account is mandatory for investing or trading in the stock market. Your shares, bonds and other securities are kept safe in electronic form in this account. Whereas earlier paper share certificates were prevalent, now the entire process has become digital. Traditionally brokers charge brokerage fees on every purchase and sale. But with increasing competition and advancement in technology, the option of zero brokerage demat account has now emerged, which has made trading more affordable, especially for new and active investors.
What is Zero Brokerage Demat Account?
Zero brokerage demat account is an account in which the broker does not charge any brokerage commission for buying or selling shares. That means the traditional fee charged on each trade is zero. This feature is especially beneficial for investors and traders who make regular or small trades, as it significantly reduces the overall trading costs.
Key Features of Zero Brokerage Demat Account
No Brokerage Charges: Transaction based brokerage is not charged on buying and selling.
Completely online process: Most brokers offer the facility of account opening from home through digital KYC.
Easy and Modern Platform: The mobile app and web platform are user-friendly, making trading effortless.
Other charges applicable: Even if the brokerage is zero, Annual Maintenance Charges (AMC), Exchange Transaction Charges, SEBI Fees, GST and other statutory charges may be applicable.
What are its benefits?
Cost Reduction: Lower expenses can have direct benefits in the form of increased potential profits.
Greater Flexibility: Without brokerage, investors feel more comfortable making small and frequent trades.
Easy start for new investors: Low costs make it simple for investors with limited capital to enter the market.
Fee Transparency: The fee structure is relatively clean and easy to understand.
How to open zero brokerage demat account online?
Step 1: Select the right broker: Choose a trusted and registered broker that offers zero brokerage facility.
Step 2: Fill the Online Application: Complete the application form with your personal and financial information.
Step 3: Upload KYC Documents: Upload the required documents like PAN Card, Aadhar Card and bank details.
Step 4: Video/In-Person Verification (IPV): In some cases, identity verification is done through a video call.
Step 5: Start trading once your account is activated. After document verification your demat account gets activated.
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