As a trader and investor, you must be familiar with the terms Demat account and brokerage account. 


A Dematerialized account is commonly known as a Demat account. This type of account contains your shares and securities electronically. Using your Demat account, you can track your investments like stocks, mutual funds, bonds, and more. The best part is that you can access all these investments from a single account. 

Similar to your bank account, the demat account will also have a unique account number. The account number is highly crucial for all investors as they must quote the number in all communications with the broker.

This article will list the step-by-step process to open a zero-balance Demat account. 

Important things to know about zero balance demat accounts

  • Zero brokerage for all

A zero balance Demat account allows you to trade across various segments of the market and buy shares online without applying any additional brokerage fee. Be it options trading, futures trading, commodities, equity, or more, with zero brokerage, you buy and sell without worrying about the brokerage cost. This makes it perfect for beginners who want to experiment and learn about equity trading.  

  • Plan-based accounts

Yes, there is no brokerage charge involved. However, to access that perk, you must subscribe to a monthly or a yearly plan. It’s most suited for intra-day traders.

  • Read the terms and conditions.

When you look for a zero balance demat account, do not hop on board with an offer without reading all the terms & conditions carefully. Some will offer Demat accounts that are initially free and will start charging for the same. 

Step-by-step process to open a zero balance demat account:

  • Choose The Right Provider:

As mentioned earlier, compile a list of all the Demat account providers offering zero balance accounts. Look for reputed institutions with a strong track record in the financial market and favorable customer reviews.

  • Online Account Opening:

 Most providers offer the option to open a Demat account with zero balance online. Visit the official website of your chosen provider and navigate to the account opening section.

  • Provide Necessary Details:

Fill in the required information, including your name, contact details, PAN (Permanent Account Number), Aadhaar number, bank details, and other relevant information.

  • KYC Process:

 To comply with regulatory requirements, you’ll need to complete the KYC (Know Your Customer) process. This involves submitting documents such as your PAN card, Aadhaar card, address proof, and a passport-sized photograph.

  • Verification And Approval:

 Once you’ve completed the application and KYC process, the provider will verify your details. Upon successful verification, your zero balance Demat account will be approved, and you will get your account details.

Conclusion:

Opening a zero-balance Demat account is a great way for beginners to learn the tricks of trading without paying the additional brokerage charges. However, you must read all the terms and conditions carefully before going ahead. Once you are sure of a pick, use the tips and tricks mentioned here to set up your zero-balance Demat account. You can also pick the best online trading app to learn more about trading tricks.