Trading Account Transfer Explained (Change Brokerage Account)

Published on Friday, September 10, 2021 by Chittorgarh.com Team | Modified on Sunday, July 10, 2022

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

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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.

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Steps to Change Trading Account

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.

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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.

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Examples

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

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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.

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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.

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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.