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How to Open a Demat and Trading Account at Zerodha?

Sebencapital

Published
02/10/23
How to Open a Demat and Trading Account at Zerodha?

If you're interested in opening a Demat and trading account at Zerodha, you're in the right place. In this article, we'll walk you through the steps to get your Zerodha to account up and running.

By the end of this guide, you'll have a fully active Demat account with Zerodha, provided you have all the necessary personal documents and diligently follow the procedure outlined here.

Before we delve into the step-by-step process, let me share my personal experience and reasons for choosing Zerodha as my preferred stockbroker.

When I first ventured into investing, I opted for ICICI Direct as my stockbroker to set up my Demat and trading account. While I was initially content with their services and platforms, it didn't take long to realize that ICICI Direct was rather expensive.

I often found that the hefty brokerage fees at ICICI Direct were eating into my profits. What frustrated me even more was that I had to pay substantial brokerage fees even when selling stocks at a loss.

Seeking input from friends who were using SBI Smart and HDFC Securities, I discovered that they, too, were grappling with high brokerage costs and advised against choosing those platforms. After thorough research, I decided to open a new Demat and trading account with Zerodha.

Zerodha stands out as India's largest discount broker, boasting a customer base of over 30 lakhs. The charges levied by Zerodha are quite reasonable, and its trading platform is known for its speed and user-friendliness.

Zerodha charges a brokerage fee of 0.03% or Rs 20 per completed order, whichever is lower, regardless of the number of shares or their prices.

To put this into perspective, it's significantly cheaper than ICICI Direct, which imposes a brokerage fee of 0.55% on each equity transaction. For instance, if you were to buy stocks worth Rs 50,000 with ICICI Direct, you'd be paying a brokerage fee of Rs 275 (in contrast, Zerodha would charge a maximum of Rs 20 for any trade).

Furthermore, as this fee is applicable on both sides of the transaction (buying and selling), you'd end up paying a total of Rs 550 for the entire transaction—significantly more expensive than Zerodha.

In summary, if you're considering entering the stock market or are already a participant, I recommend opening an account with the discount broker Zerodha. Doing so can save you significant brokerage fees and enhance your overall trading experience.

Why should you create a demat and trading account at Zerodha?

Zerodha is India's largest stockbroker by daily trading volume, growth rate, and active customer base, and it's known for being one of the most technologically advanced and cost-effective stockbrokers.

With a client base of over 3 million and contributing to more than 15% of the daily retail trading volumes on NSE, BSE, and MCX, Zerodha has made a significant mark in the industry. Even when considering active clients trading solely on NSE, Zerodha has outperformed both new and traditional brokers.

Founded by Nitin Kamath in 2010, Zerodha received the "Startup of the Year" award at the Economic Times (ET) Startup Awards in 2020. This recognition places it among a select group of winners with the potential to become blue-chip corporations.

Nitin Kamath was recognized by The Economic Times in 2016 as one of the top business people in India to keep an eye on. He earned this recognition for introducing and expanding the idea of discount broking in India. Zerodha has also received various other prestigious awards, including:

  • ET Startup of the Year (2020)
  • National Stock Exchange (NSE) "Retail brokerage of the year" (2019 and 2018)
  • Outlook Money "Retail broker of the year" (2017)
  • Ernst & Young "Entrepreneur of the Year (Startup)" (2017)

There are several compelling reasons to consider opening a Demat and trading account with Zerodha:

  • Zero Fees for Equity Delivery Trades: Zerodha charges no fees for equity delivery trades, which is especially beneficial for long-term investors.
  • Low and Transparent Charges: For intraday trading and other segments, Zerodha charges a flat fee of Rs 20 or 0.03% per executed order, whichever is lower. This fee structure ensures transparency and cost-effectiveness.
  • Consistent Pricing Across Exchanges: Zerodha offers the same pricing for all exchanges, simplifying the fee structure and making it easier for traders.
  • No Upfront Fee or Turnover Commitment: Opening an account with Zerodha doesn't require paying any upfront fee or committing to a specific turnover.
  • Z-Connect for Customer Support: Zerodha provides Z-Connect, an interactive blog and portal where you can find answers to your queries.
  • Large Customer Base: With over 6 million satisfied customers, Zerodha has established a strong reputation in the industry.
  • Dedicated Support Team: Zerodha boasts a dedicated support team of 300+ professionals, ensuring quick responses to customer queries via email or phone.
  • Next-Generation Trading Platforms: Zerodha offers a range of advanced trading platforms, including Pi (for trading, charting, and analysis) and Kite (a responsive web-based platform).
  • Lower Risk Margin Utilization: Zerodha clients benefit from an average exchange margin utilization of 55%, notably lower than the industry average of 70%, reducing risk.

These factors make Zerodha an attractive option for traders and investors seeking an affordable, transparent, and efficient stockbroking experience.

How do you open a demat and trading account at Zerodha?

You will need the following documents to open a Demat and trading account at Zerodha. It's advisable to have digital copies of these documents readily available, as you'll be required to upload them during the account opening process:

1. PAN CARD: Ensure your PAN card is signed, as an unsigned card is not considered valid.

2. Aadhar Card: Ensure your Aadhar card is linked to your mobile number.

3. Bank Account Proof: Provide proof of your bank account, which can be any of the following:

  • Bank passbook front-page photo or scanned copy
  • Online bank statement
  • Canceled cheque (Note: If submitting a canceled cheque, your name should be PRINTED ON IT for acceptance).

4. Your Signature: You'll need a photo or scanned copy of your signature on paper.

5. Income Proof (Optional): This is required if you plan to trade in Futures and Options (F&O) or commodities. Acceptable documents include a recent salary slip, the last six months' bank statement, or your Income Tax Return (ITR).

Preparing these documents in advance will streamline the account opening process and help you start your Demat and trading account at Zerodha more quickly.

PAN CARD

Account opening charges at Zerodha

To open an account at Zerodha, you should be aware of the account opening charges:

  • Demat and Trading Account: Rs 200
  • Commodity Account: Rs 100

If you plan to trade in both equity and commodities, the total account opening charge would be Rs 300. However, if you focus solely on equity (stocks), you'll only need to pay the Rs 200 charge.

You have two methods to choose from when opening an account at Zerodha:

  • Online Method: You can complete the account opening process online in just 15 minutes, provided you have all the necessary documents. You'll be required to authenticate it with an OTP during the online process. Make sure your mobile number is linked to your Aadhaar. If not, you won't be able to proceed. If your Aadhaar-linked mobile number is inactive or not linked, you can visit your nearest Aadhaar Seva Kendra to update it. The online method is recommended for a faster and more straightforward account opening.
  • Offline Method: This method doesn't rely on your Aadhaar details, but it's generally not as fast or efficient as the online approach. Given the technological nature of trading and the need for online transactions, choosing the online method is advisable, especially if you intend to be actively involved in online trading. Being tech-savvy is a valuable skill in the trading world.

Choosing the online route not only simplifies the account opening process but also aligns with the digital nature of the trading industry. It's a practical choice for those who want to be comfortable with online trading platforms and execute transactions efficiently.

How to Create Your Account with Zerodha Online?

Short Answer to Create Your Zerodha Account

Certainly, here's a concise answer on how to open your Zerodha account before I provide a detailed step-by-step guide.

On this page, the initial step is to sign up, apply your mobile number, and verify the OTP. Subsequently, you must input your PAN bank account information, complete Aadhar verification, and provide your details to proceed with the sign-up process.

Zerodha

All the instructions are clearly outlined on each step of the account opening page. You may not need to peruse this entire post if you can read and efficiently follow instructions. Proceed to the account opening page, adhere to the instructions, and upload the required documents, and your account will be opened.

However, should you encounter any challenges during the online account opening process, you can contact Zerodha at - 080 4913 2020.CCC

A Quick Intro to DigiLocker

Opening your account online with Zerodha will prompt you to link it with your DigiLocker account. For those who are unfamiliar with DigiLocker, here's a brief introduction.

Intro to DigiLocker

I was quite impressed when I first learned about DigiLocker in early 2017. DigiLocker is an online service that the Department of Electronics and Information Technology, Government of India, navigated under its Digital India initiative. I always keep the DigiLocker app on my mobile phone, and I'll explain why.

If you live in a city, you've encountered this situation. You step out to buy groceries or drop someone off and quickly forget your wallet. That means you don't have your driver's license or vehicle registration documents. If a traffic police officer stops you, explaining why you're traveling without these documents can be a hassle.

However, if you have the DigiLocker application on your phone, you can display your driver's license and vehicle registration from the app.

Motorists can present their documents in DigiLocker during a traffic check, as the Government of India provides. Moreover, it's more secure and widely accepted by traffic police than a photo stored in your phone's gallery.

Furthermore, you can also store other essential documents in the DigiLocker app, such as your Aadhar card, PAN card, driver's license, voter ID, educational certificates, and more.

In summary, if you haven't created a DigiLocker account yet, I recommend doing so and downloading the app on your phone. It will help you keep all your documents secure.

Additionally, you'll need a DigiLocker account for Aadhar verification during the Zerodha account opening process.

Detailed Zerodha Account Opening Process – Steps to Open your Account with Zerodha online

Certainly, let's go through the detailed step-by-step explanation of how to open your account at Zerodha online:

Step 1: Open your browser and go to the Zerodha account opening page.

Zerodha account opening step-1

Step 2: Provide your mobile number to start the sign-up process. You will receive an OTP (One-Time Password) on your mobile number for verification.

  • The OTP you receive will be valid for the next 30 minutes. Please check your SMS and use this OTP to verify your mobile number.
  • Quick Note: In this step, you can create an account with any mobile number you choose. However, it's important to note that you must also have an Aadhar-linked mobile number, which will be used later for Aadhar-based OTP verification. This is essential to complete the online account opening process.
Zerodha account opening step-2

Step 3: Enter your PAN Card number and date of birth (DOB) details in the fields provided. Ensure that you enter this information accurately. You can refer to the screenshot below for guidance.

Zerodha account opening step-3

Step 4: Complete the account opening payment, a one-time investment.

  • For an equity account, the fee is Rs 200; for a commodity account, the charge is Rs 100. (A commodity account is optional; you can enable it later if you wish to trade in commodities).
  • You can make this payment through UPI or Net-banking/Card payment, which is recommended. You can refer to the screenshot below for this step.
Zerodha account opening step-4

Step 5: After finishing the payment, the next step is to attach your Aadhar details via DigiLocker.

  • As previously mentioned, DigiLocker is a secure government initiative for sharing your Aadhar details. You must create a 'DigiLocker: Towards Paperless Governance account and link your Aadhar.
  • Please refer to the screenshot for this step. Click on 'Connect to DigiLocker,' which will open a new page for signing up to DigiLocker using your phone number. If you already have an account, click the 'Sign in' option at the bottom.
  • While connecting to DigiLocker will receive an OTP on your Aadhar-linked mobile number. Once you receive the OTP, enter it and click continue. (Note: If you don't have a security PIN, click 'Forgot my PIN' to reset it.)
  • Next, click 'Allow' to share a copy of your Aadhar with Zerodha. Your Aadhar details will show on the screen. Make sure you enter the details correctly. Note: This step will only be required if you haven't completed KYC earlier.
Zerodha account opening step-5

Step 6: When your Aadhar verification is complete, you must enter your details, including your father's name, mother's name, occupation, etc. Below is a screenshot image of this step for your reference. After entering the details, click 'CONTINUE.'

Zerodha account opening step-6

Step 7: Next, you must link your bank account. Here, you should fill in more details, starting by providing your bank details, including your bank account number, bank name, branch's IFSC Code, and MICR code.

  • Make sure to choose all the options (checkboxes) and, after reading the information, click on the "Continue" button.

Note: Please cross-verify the bank account details with your bank passbook, canceled check, or online statement (soft or hard copies) to avoid any reprocessing of the forms. Below is a screenshot image of this step for your reference.

Zerodha account opening step-7

Step 8: The next step is the In-Person Verification (IPV) conducted over a webcam or phone.

  • IPV, or In-Person Verification, is a process where a depository participant personally verifies documents and other details by SEBI regulations. Every investor must undergo IPV before opening a demat and trading account.
  • First, you should allow your camera on your browser or phone to begin the IPV process (as shown in the screenshot below). Click on the "Allow" button. If you click the "Block" button, the camera will be disabled, and you may have difficulty re-enabling it.
Zerodha account opening step-8

Step 9: In the next step, an OTP will be displayed on the screen. You should write down this OTP on paper or on your smartphone. Then, hold the paper or phone with the code in front of your phone or webcam.

  • Ensure that you take a clear photo while holding the OTP written on the paper, similar to how it is done in the screenshot provided below. Finally, click on the "capture" button.
  • Note: When taking the photo, please remain still until it is captured, and keep the paper with the OTP in front of the camera.
Zerodha account opening step-9

Step 10: In this step, you need to upload the relevant documents mentioned at the beginning, including your Bank Details, PAN CARD, Signature, and Proof of Income (optional).

  • The Proof of Income is only required if you aim to trade in Futures and options, currency, and commodities. After uploading the documents, click "continue," you will be redirected to the equity eSign page.
Zerodha account opening step-10

Step 11: Now, it's time to eSign. Click the "eSign Equity" button and proceed to the next step.

  • Once you click on the sign button, the following screen will appear.
Zerodha account opening step-11

Step 12: Once you click "eSign Equity," you must verify your email. You'll have two options: Google login or email login.

  • If you choose the email login, please enter your email address correctly, as you'll receive an OTP to verify your email ID. This is the same email where you'll get all your eventual correspondence from Zerodha.
  • Enter the OTP that you've got on your registered email and verify.
Zerodha account opening step-12

Step 13: A different page with the "SIGN NOW" option will be opened once your email verification is complete. You should carefully check the form.

  • Next, click the "Sign Now" button at the bottom of the page. This will redirect you to the NSDL page.
Zerodha account opening step-13

Step 14: Once on the NSDL Page, click the checkbox at the top left stating "I at this moment…".

  • Next, enter your Aadhaar number at the bottom of the page and click "Send OTP." Finally, enter the OTP and verify.
Zerodha account opening step-14

Step 15: Once the last step is complete and verified, the page will turn green with a message that says, "You have successfully signed the document." This confirms that your design process is complete for the equity segment.

Zerodha account opening step-15

Step 16: Next, you will see a tick mark on the Equity segment, indicating that you've successfully signed up for this segment. You can also download the eSigned Document on this page.

Zerodha account opening step-16

Step 17: This step applies only to those who want to allow the commodity segment on their account. Here, you'll need to eSign again for the commodity segment. Click on the commodity eSign to redirect you to the NSDL page.

  • Next, click the checkbox at the top left corner and enter your Aadhar number. You will receive an OTP to your Aadhar-linked mobile number. Once you enter the OTP and verify it, the documents will also be designed for the commodity segment.
Zerodha account opening step-17

Step 18: Congratulations, you have finished all the steps. After completing all the previous steps, a final Congratulations message will appear on your screen. Here is a screenshot for your reference.

Zerodha account opening step-18

QuicHere's: Once you complete all the steps, the Zerodha document verification team will check your documents. Once verified, you will get an email from the document verification team confirming that your documents have been successfully verified. After receiving this email, you will get your login credentials within 24 hours.

Offline Account Opening Process

How to Create your demat and trading account with Zerodha offline?

You can also create your account with Zerodha offline. However, the offline account-creating charges are different than the online charges. Here are the charges for offline account creation:

  • Rs. 400 – for Trading & Demat Account
  • Rs. 600 – for Trading, Demat & Commodity account

In this approach, you must download application forms from Zerodha's website, print them, and fill them out, Zerodha. If you need help at any point in filling out the application form, you can call Zerodha at 080 4913 2020.

Here are the application forms that you'll need to fill out and courier for account opening:

  • Application Form: Trading Account & Demat Account – Equity section
  • Application Form: Commodity section
  • POA (Power Of Attorney) – Already involved in the Application form above
  • ECN (Electronic Contract Note) for allowing the Commodity section – Already included in the application form 2

Nomination Form: If you would like to appoint a nominee to your DEMAT and trading account, such as your wife, father, mother, or any other.

The documents required for opening your account offline are the same as those for the online process. You must get a photocopy of your P.A.N. Card, Address proof (Aadhar Card, Driving License, voter ID, etc.), Cancelled Cheque/Bank statement, Income proof, and Passport-size photographs.

You also have to cross-sign as a self-attest on all these documents. You can find the list of all acceptable documents for account opening on the Zerodha website.

Once you fill out and sign the forms, you have to send the application forms to the Zerodha head office at the following address:

153/154 4th Cross Dollars Colony, Opposite Clarence Public School, J.P Nagar 4th Phase, Bangalore-560078

On the other hand, you can schedule a meeting with a Zerodha representative at a date, address, and time as per your suitability by calling the account-creating helpline (080 4913 2020) or by requesting with the sales manager assigned to you.

In this case, a Zerodha representative will contact you and guide you to keep all necessary documents ready at the decided place and time of the meeting. The representative will take all the necessary signatures and self-attested documents/attachments to complete the account opening procedure.

What Next After Opening Your Zerodha Account? Once your account opens, you can log in to this link or use the KITE application on your mobile.

KITE app

Closing Thoughts

I recommend using the online method when opening your account with Zerodha. Zerodha is aligned with the Digital India initiative, and it's a convenient and efficient way to open your account.

Although the online method may have many steps, they can be completed relatively quickly. Once you start the application, you can establish a flow and complete the form in 15-20 minutes.

The offline method can be a good choice if you don't have an Aadhar card and must provide and don't address proof like a Driving License or Voter ID.

However, finding a Zerodha executive for the offline method might be challenging in smaller towns or villages. The offline process can take 7-10 days to open a demat and trading account.

That's it! These are the steps for opening a That'sand trading account at Zerodha, online and offline. I hope this guide on 'How to create a Demat and trading account at Zerodha?' is helpful to our readers. If you have any 'questions or concerns, please comment below.

Written by Sauravsingh

Techpreneur and adept trader, Sauravsingh Tomar seamlessly blends the worlds of technology and finance. With rich experience in Forex and Stock markets, he's not only a trading maven but also a pioneer in innovative digital solutions. Beyond charts and code, Sauravsingh is a passionate mentor, guiding many towards financial and technological success. In his downtime, he's often found exploring new places or immersed in a compelling read.

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