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How long does it take to open online trading and Demat Account

Any investor knows that the first and foremost thing to do when one wishes to invest or trade in the securities markets is to undergo an account opening procedure. However, what accounts need to be opened and how? Firstly, it is mandatory to open a Demat account. After this, a trading account may be created. Finally, you should have a bank account where profits you earn from trading transactions (if any) are deposited. 

You may have a bank account and your bank may be a depository participant (DP) who is licensed to open a Demat account for you. This entitles you to a free Demat account opening process. However, you can open a Demat account with a broker like Motilal Oswal too, independently of where you have a bank account. Most brokers will permit you to open a free Demat account. It's easy enough to open a Demat account online, but first you should know what it is. The purpose of a Demat account is essentially to hold securities that you won, or may buy in the future through trading. Stocks, bonds, mutual funds and any other assets may be stored in an electronic form in a Demat account. 

  • Steps to Open a Demat Account

You may get to open a free Demat account with no annual charges online. It's an easy process, whether you open it through a menu-driven process on the website of your bank, or an independent brokerage firm. Here are the basic steps, and through this, you may gauge how long it will take to set up your online Demat account: 

  1. Visit the website of the bank or the brokerage where you wish to open a Demat account.
  2. You have to register your details online through a KYC form.
  3. The KYC form must be submitted. 
  4. Your KYC details will be authenticated via a quick verification process. 
  5. The verification may take a few hours at most, about 4 hours at the maximum. 
  6. Once your verification is successful, you will receive a unique identification number that is sixteen digits long. 
  • A Trading Account

The purpose of a trading account, usually linked with your Demat account automatically, is to conduct transactions in trading (buying and selling assets). Demat and trading accounts, therefore, are irrelevant without each other if you want to regularly invest. Once you have opened a Demat account online with a brokerage firm or with your bank, you can open a trading account that is linked with your Demat account. The trading account may be opened instantly and as you have submitted your documentation to open your Demat account, the process to open a linked trading account will be brief. Today, you can open any kind of account online, even open bank account online.  

  • Easy and Quick

Opening accounts for holding assets and trading is easy and quick online. You can monitor your application online, and you will be able to view the status of your application in case of a delay. However, if you opt for an efficient broker like Motilal Oswal, processes are rapid. 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account | Upcoming IPO | LIC IPO


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