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Trading Account Transfer Explained (Change Brokerage Account)

Published on Friday, September 10, 2021 by Chittorgarh.com Team

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Trading Account Transfer Explained (Change Brokerage Account)

There are numerous reasons why people may look to switch their trading accounts from one broker to another. Some may want to shift due to better brokerage plans or value-added services, while others may look for advanced trading platforms.

You can open multiple trading and Demat accounts with different brokers. However, managing these accounts comes with a cost of annual maintenance charges and also needs tracking. Thus, it is always advisable to maintain only one trading and Demat account.

Topics

  1. Trading Account Transfer Procedure
  2. Steps to change the trading account
  3. Brokerage Account Transfer Fees
  4. Examples
    1. Trading Account Transfer from Sharekhan to Zerodha
    2. Trading Account Transfer from ICICI Bank to Upstox
  5. Conclusion
  6. FAQs

Trading Account Transfer Procedure

The trading account transfer process depends on two factors:

  1. If you hold shares in the demat account, you are required to open a new account, transfer shares and then close the existing account.
  2. If you do not have shares in the demat account, you could simply open a new trading account and close the existing account.

Note:

  • If you trade only in Equity, you can either transfer your holdings to a new Demat account or sell them off as you desire.
  • If you have any F&O positions, you are required to close these positions before initiating account closure, as the F&O open positions do not get transferred.

Steps to Change Trading Account

Trading Account Transfer in India

1. Open a new Trading and Demat account

To shift your brokerage account from one broker to another, you need to open a new Trading and Demat account. Most brokers have made it mandatory to open both Demat and Trading accounts.

2. Transfer existing holdings to new Demat account

Once the new Demat account gets opened, you can transfer the stocks in your existing Demat account to the new Demat account. You can also sell off the shares if you get a better price and do not wish to transfer them to your new account.

To transfer the stocks to the new Demat account; contact the existing broker and submit the Delivery Instruction Slip (DIS). The DIS should contain all the stocks details, new DP ID, and new Demat account number. This process is offline and takes a few days.

Alternatively, if both of your Demat accounts are with CDSL, you can transfer the securities online on your own by registering with CDSL Easiest.

Points to Note:

  1. All holdings in the demat account can be transferred. This includes equity shares, mutual funds, ETF etc.
  2. You cannot transfer your F&O positions to the new broker. The F&O open positions need to be closed.

3. Close old Trading and Demat account

Once you close your F&O positions (if applicable) and your demat holdings (stocks and Mutual Funds) get transferred, you are good to proceed with the account closure of your old trading account.

Before initiating the closure of the account, you also need to ensure there are no outstanding dues to the broker. You can either withdraw the amount if there is a credit balance in your trading account or receive the funds in your bank account as part of the full and final settlement.

Steps to Close Trading Account

The trading account closure is a manual process. It requires sending the paper form to the broker. A trading account cannot be closed via email, phone or chat. A broker generally takes about 7-15 days to close the account.

  1. Download the Account Closure Form.
  2. Fill the form with your trading and Demat account details.
  3. Mention the reason for the closure.
  4. Sign and submit the account closure form to the broker's office.

Brokerage Account Transfer Fees

A trading account transfer involves the below charges:

  1. Account Opening Fees - You need to incur one-time account opening charges for opening a new trading account.
  2. DP Charges - You need to pay the applicable DP charges for the transfer of shares. The offline share transfer charges are mentioned in the Demat Charges sheet provided by the broker.

Examples

Let us have a look at two examples to understand the process better.


1. Trading Account Transfer from Sharekhan to Zerodha

Following are the steps for trading account transfer Sharekhan to Zerodha.

  1. Open an account with Zerodha

    Open an online account with Zerodha. The process is simple, 100% online and just takes a few minutes. Both trading and demat accounts are opened.

  2. Transfer holding from Sharekhan

    Get the DIS slips from Sharekhan, fill them and submit them to the Sharekhan office. Sharekhan processes your offline transfer request within a day. Sharekhan charges an 'offline share transfer fee'.

    You also have an option to transfer your holdings using CDSL Easiest if your Sharekhan account is CDSL.

  3. Close the open positions in Sharekhan (if any)

    Close all your open F&O positions in equity, commodity and currency segments. The open positions in Sharekhan need to be squared off, as these cannot be transferred to Zerodha. You can square off the existing month position in Sharekhan and take the new month's position in Zerodha.

  4. Close the Sharekhan account

    To close the Sharekhan account, you need to submit a physical copy of the account closure form.

    Steps to close the Sharekhan account:

    • Get the Sharekhan account closure form.
    • Fill it up.
    • Attach all the unused DIS slips.
    • Submit it to the nearest branch.

    Sharekhan takes about 7-15 days to process the closure application.



2. Trading Account Transfer from ICICI Bank to Upstox

Following are the steps for the account closure-cum-transfer process from ICICI Bank to Upstox.

  1. Open an account with Upstox

    Open an online account with Upstox. The process is simple and paperless.

    Steps to open Upstox trading and demat account online:

    • Visit Upstox.com.
    • Enter your email ID and mobile number and click on Send OTP.
    • Enter the OTP sent on your registered mobile.
    • Click on Verify and Sign-In.
    • Enter your PAN number and Date of birth.
    • Enter the below personal details and click on Next.
      • Gender.
      • Marital status.
      • Annual income.
      • Trading experience.
      • Occupation.
      • Father's Name as per PAN card.
      • PEP (politically exposed person) confirmation.
      • Country of tax residency.
      • Taxpayer declaration.
    • Enter your bank account details (IFSC and Bank account no.) and click on Next.
    • Sign on the screen and click on Submit.
    • Connect your Digilocker with Upstox.
    • Enter the Aadhar No. and click on Next.
    • Enter the OTP to verify the Aadhar.
    • Click on Allow for Digilocker to share your documents with Upstox.
    • Allow camera permission to capture your photo.
    • Verify your email id by entering the OTP and click on Next.
    • Upload income proof to activate F&O, Currency, and Commodity segment.
    • E-sign your application with Aadhar OTP.
    • Enter the Security code received on registered mobile no.
    • Click on Sign Now.
    • Enter the OTP received on registered mobile no. to complete the E-sign process.
  2. Transfer the securities from ICICI to Upstox

    To transfer the securities from ICICI to Upstox, fill the DP slip for offline transfer of shares and submit it to your nearest ICICIdirect branch or send them to the address given. Note, you got the DP slip (look like a cheque book) when you opened the demat account with ICICI. If you don't have DP Slips, request them from ICICI.

    ICICI Demat account closing form also has an option to transfer the demat holding to another demat account. Check with the bank before submitting the DP slips.

  3. Close F&O open position in ICICI (if any)

    If you have open positions in the derivatives segment, you need to close them before initiating the closure of the ICICI account. To close the open positions, you need to square off the trades in ICICI.

  4. Close the ICICI Direct trading and Demat account

    To close the ICICI Direct account, you need to fill and submit two separate closure forms for the Trading and Demat accounts. This is a manual paper-based process. You cannot close accounts online, via email or on phone.

    Steps to close ICICI Direct trading account

    1. Download and print the ICICI Trading Account Closure Form or procure from the nearest ICICI Direct branches.
    2. Fill in the required details like PAN No., Date of birth, and applicant name.
    3. Submit the duly signed and filled form to the nearby ICICI Direct branch.

    Steps to close ICICI Demat account:

    1. Download the ICICI Bank Demat Account closure form or Visit the nearest ICICI Bank branch and submit an application for Account Closure.
    2. Fill the form by providing all the required details.
    3. Attach all the unused DP slips.
    4. Submit the form to the nearest ICICI Bank branch.

    ICICI may take up to 7-10 working days to close the account. Once the account is closed, you will get a confirmation SMS.



Conclusion

Shifting from one broker to another broker is simple, convenient and safe. It's a 3-step process; open a new account, transfer holdings / close positions and close the account (manual process). You will have to print, sign and submit the paper form to the broker. Moving to another broker can save brokerage and let you experience the next level of the trading platform.

Frequently Asked Questions

  1. 1. How to transfer trading account to Zerodha?

    Transferring trading account to Zerodha is a 3 step process:

    1. Open an account with Zerodha
    2. Transfer your demat holdings from the old broker to Zerodha
    3. Close your existing broker account

    Note:

    • You can transfer your shares, mutual funds and ETFs by submitting a DIS slip to your existing broker. You could also transfer them online using the CDSL website.
    • If you have any open F&O positions with the existing broker, you need to close them as these cannot be transferred to Zerodha.
    • Ensure that your old account is closed after 2 weeks. In many cases, the broker put the request on hold and keeps charging AMC.

     

  2. 2. Can I transfer brokerage accounts?

    Yes, you can transfer brokerage accounts by opening a new account, transferring demat account holdings and closing the old one. It's easy, hassle-free and safe to move to another broker.

    Steps to transfer brokerage account

    Transferring a brokerage account is a simple 3 step process:

    1. Open a new brokerage account online.
    2. Transfer your demat holdings to a new broker using DIS or CDSL Easiest.
    3. Close existing Trading and Demat account by submitting paper forms.

    Note:

    • Equity shares and mutual funds could easily transfer to a new brokerage account by submitting a DIS slip to your old broker. You could also transfer them online using the CDSL website if both old and new demat accounts are with the CDSL depository.
    • Close all F&O positions and clear dues before submitting the account closure request.
    • If you don't get the account closure confirmation, follow up with the broker.

     

  3. 3. How to transfer brokerage account in India?

    The brokerage account transfer in India requires opening an account with a new broker, transferring shares and closure the existing account.

    Moving account from one broker to another is easy, convenient and safe. Millions of investors do it every year. It takes a couple of week's time.

    Steps to transfer brokerage account in India

    1. Open an online account with a new broker.
    2. Offline transfer shares and mutual funds to new demat account using DIS Slip or CDSL Easiest online transfer facility.
    3. Close the old brokerage account.

    Before closing the old brokerage account, you need to ensure to:

    • Clear all the outstanding dues
    • Transfer all existing holdings to a new Demat account
    • Close all open positions.

    The transfer process is simple but may take up to 20-25 days to complete the closure-cum- transfer. It includes the timelines at each step - new account opening (2-5 days), transfer of holdings (2-3days), the closing of open positions (may vary based on the price movements), and account closure (7-15 days).

     

  4. 4. How do I change my trading account?

    Changing is trading account can be achieved easily by following simple steps. With paperless instant account opening and online share transfer through CDSL Easiest, changing the trading account becomes fast, convenient and safe.

    Steps to change trading account

    1. Identify the new broker where you want to open an account.
    2. Open an online account (Trading and Demat).
    3. Transfer your holdings (Shares, MFs, ETFs) to the new broker using DP Slip or CDSL's Easiest online facility for offline share transfers.
    4. Close derivatives open positions if any
    5. Withdraw the funds from your old trading account.
    6. Close the old trading account.

    Note:

    • The process of changing trading account may take two to three weeks.
    • The account closure process is manual. You will have to print, sign and send the paper account closure form to the broker office.
    • If you have both old and new trading account with CDSL, you could register to CDSL Easiest facility and transfer your shares online.

     

  5. 5. How to transfer shares using CDSL Easiest?

    CDSL provides an online facility to transfer the shares from one Demat account to another using CDSL Easiest. To use this facility, both the Demat account should be with CDSL.

    Steps to transfer shares using CDSL Easiest

    1. Register for CDSL Easiest.
    2. Add Trusted account details. (You can add up to 4 trusted accounts) The activation of trusted accounts may take up to 24 working hours.
    3. Once the trusted account is set up, go to 'Setup' on the transaction section.
    4. Select Bulk Setup.
    5. Click on the Transaction tab.
    6. Enter the below details and Submit
      1. Execution date.
      2. Recipient BO ID.
      3. ISIN
      4. Quantity
      5. Reason for transfer
    7. Click on verify to verify your request.
    8. Click on Commit.
    9. Enter your CDSL Easiest PIN and click on OK. (8- digit pin received at the time of CDSL Easiest registration)

    Once the DP confirms the request, the shares get transferred.

     

  6. 6. How to transfer shares between brokerage accounts?

    You can transfer shares between brokerage accounts in two ways:

    1. Online using CDSL Easiest or NSDL Speed-e.
    2. Offline by submitting DP Slip to the broker where you currently hold shares.

    The online route is convenient. However, certain brokers will lose the authority to debit the shares from your account to meet the sell obligation. This may create difficulty in selling your holdings. Hence, ensure to check with your new broker before you opt for the online route.

     

  7. 7. How to transfer shares from NSDL to CDSL?

    You can transfer the shares from NSDL to CDSL by submitting the physical Delivery Instructions slip (DIS) or using the online Speed-e facility. You need to ensure to submit an Inter-depository transfer request as the transfer involves two different depositories.

    If the transfer of securities is a one-time process, it is recommended to use the manual route to transfer the securities for simplicity.

    Steps to transfer shares from NSDL to CDSL (offline)

    1. Procure an Inter-depository DIS from your DP/broker or ensure to select the Inter-depository if the DP/broker has a common DIS for both.
    2. Fill in the target beneficiary details like DP ID, Client ID.
    3. Fill in the details of the stock to be transferred viz. ISIN, Security name, Quantity.
    4. Sign the DIS.
    5. Submit the DIS to your DP/broker.

    Steps to transfer shares from NSDL to CDSL (online)

    You need to register for Smart card-based access to Speed-e to procure a digital signature certificate (DSC) to submit an on-market or off-market inter-depository transaction of your choice.

    1. Download and fill the SPEED-e Application Form, Power of Attorney or obtain it directly from your DP.
    2. Fill in all the required details.
    3. Submit the duly filled-in form with the requisite documents to your DP.
    4. DP will verify the details and then assign a User-Id that can help procure a Smart Card Kit, Digital Signature Certificate (DSC), and Personal Identification Number (PIN).
    5. Install the Smart Card Kit on the computer along with the User-Id, DSC, and PIN.
    6. You can transfer the securities to the desired beneficiary using the inter-depository module.

    Note: The Speed-e facility is available to users only when their DP has subscribed to the Speed-e facility.

     

  8. 8. How to transfer shares from CDSL to NSDL?

    You can transfer the shares from CDSL to NSDL using the CDSL Easiest facility or through manual submission of physical Delivery Instruction Slip (DIS).

    The inter-depository transfer using CDSL Easiest requires a digital signature certificate that costs Rs. 2,250 + taxes. CDSL's Easiest facility is convenient for intra-depository transfers. Thus, when it is a one-time transfer from CDSL to NSDL, it is advisable to transfer the shares using the offline route.

    Steps to transfer the shares from CDSL to NSDL offline

    1. Fill in the DIS from the existing booklet or procure it from the broker/DP.
    2. Ensure to select the Inter-depository transfer.
    3. Fill in the market type as Off-market.
    4. Fill in the beneficiary Client ID and DP ID.
    5. Fill in the details of the stock to be transferred viz. ISIN, Security name, Quantity.
    6. Sign the DIS.
    7. Submit the DIS to your DP/broker.

    The DP/broker will complete the transfer within 2-5 working days.

     

  9. 9. Can I convert my newly created ICICIdirect account from NSDL to CDSL?

    You cannot directly convert your NSDL account to CDSL. You need to open another Demat account with ICICI with CDSL and transfer your holdings to the newly opened CDSL account as per below:

    1. Download the ICICI CDSL Demat account opening form.
    2. Fill the form with personal details such as name, address, contact details, PAN, bank account details, etc.
    3. Attach the KYC documents for proof of Identity and Proof of address.
    4. Submit the duly filled and signed form to your nearest branch.
    5. Once the account with CDSL gets opened, transfer the shares from the existing NSDL account to the newly opened CDSL account using inter-depository transfer. Click here to know more about Inter-depository transfer.
    6. Link the newly created CDSL Demat account with your trading account.

    You can then close your NSDL account or keep it as desired.

    Alternatively, you can also visit your nearest ICICI branch. The company representatives can assist you with the end-to-end process of account opening and transfer.

     

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