Investing · 7 min read
How to open a demat account in India: the 15-minute version
What a demat account actually is, the documents you need, what it costs, and how to avoid the two settings that quietly cost beginners money.
Krish Dalal
Founder and editor, PaisaExpert. Master's in Business Management, London. · Last updated 2026-08-13
A demat account holds your shares in electronic form, the way a bank account holds your money. Alongside it you get a trading account, which is what actually places the buy and sell orders. In practice brokers open both together and most people never think about the distinction again.
What you need before you start
- PAN card. Non-negotiable, and the name must match your other documents exactly.
- Aadhaar linked to the mobile number you are holding, because the whole process hinges on that OTP.
- A bank account in your own name, with a cancelled cheque or the statement showing your name and IFSC.
- A photo of your signature on plain white paper.
- Income proof, only if you plan to trade derivatives. For buying shares and funds, you can skip it.
What it actually costs
| Charge | Typical amount | Can you avoid it? |
|---|---|---|
| Account opening | ₹0 to ₹300 | Sometimes waived in offers |
| Annual maintenance (AMC) | ₹0 to ₹750/year | A few brokers charge nothing, most charge ₹300 |
| Delivery brokerage (buy and hold) | ₹0 at discount brokers | Yes, choose a ₹0-delivery broker |
| Intraday and F&O per order | ₹20 or 0.03% | Only by not trading |
| Demat debit (per sell) | ₹13 to ₹20 | No, this is a depository charge |
| Statutory charges (STT, stamp, GST) | Small % per trade | No, these are government charges |
The line that matters most for a long-term investor is delivery brokerage. If you are buying index funds and shares to hold for years, a broker charging ₹0 on delivery means your entire strategy costs nothing to run. Percentage-based brokerage at a full-service broker will quietly take a slice of every purchase for decades.
Frequently asked
What to do next
- Check your Aadhaar is linked to the mobile number you currently use, since the whole process depends on that OTP.
- Pick one discount broker with ₹0 delivery brokerage and stop comparing.
- Decline the margin trading facility during signup.
- Buy Direct plans only, never Regular.