Is It necessary to open a demat account with Zerodha?

Save over 60% on Brokerage

We can help you save between 60% to 90% brokerage fee & taxes. Contact us today...

NamePhone
EmailCity
State
Are you a day trader?

No, it's not mandatory to open a demat account with Zerodha:

  • If you are planning to trade only in derivatives (Equity, Currency and Commodities)
  • Or if you have a demat account with another broker.

But if you are investing in Equity or Mutual Funds through Zerodha trading account, it is highly recommended to have a demat account with them. This makes the online transactions between the trading and demat account very easy.

Demat account holds the share and mutual funds in the electronic form. For equity cash trading, a demat account is mandatory in India (it could be either with Zerodha or another broker). But, when you are trading in commodity, futures and options, you are not required to have a demat account.

If you are planning to apply in IPO you will need a demat account to get the allocated shares to deliver to you.

If you already have a demat account with a different stockbroker, it is not compulsory to open a new account. Investors can link the existing demat account with Zerodha trading account. But every time you sell the shares, you will have to manually transfer them to Zerodha so that Zerodha can settle the transaction by delivering the shares to the buyer. This is a painful process.

 

Zerodha - Open Instant Account in 15 Minutes Open Instant Account with Zerodha

 



Comments

Add a public comment...

Ask Your Question







Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App