To start trading, you’ll need two important accounts: a Demat account and a Trading account. Here’s a simple guide on what these accounts are and how you can open them with HDFC Securities.
What is a Demat Account?
A Demat account, which stands for Dematerialized account, acts like a digital storage for your shares and securities. Imagine it as an online safe for your investments. When you purchase shares, they’re held in your Demat account; when you sell shares, they’re taken out of this account. This system replaces physical share certificates, making transactions quicker, more efficient, and much safer. Basically, a Demat account keeps your investments safe from risks like theft, loss, or damage by storing them electronically.
What is a Trading Account?
A Trading account is used to buy and sell shares in the
stock market. While your Demat account stores the shares, the Trading account
is used to execute transactions. You need both accounts to trade: the Trading
account for placing buy or sell orders and the Demat account for holding the
shares. When you make a trade, your Trading account handles the transaction,
and the shares are either credited to or debited from your Demat account.
Opening both accounts with HDFC Securities is easy, enabling you to manage your stock market investments efficiently and securely.
Opening a Demat Account with HDFC Securities App
HDFC Securities offers a seamless and user-friendly process
for opening a Demat and Trading account, which can be completed in just 10
minutes. Here’s a step by step guide to open a Demat account:
Step 1: Gather Necessary Documents
Before you begin, ensure you have the following documents
ready:
PAN Card
Aadhaar Card
Need to enter Bank account details (e.g. IFSC code and
account number)
Signature on Blank paper (white)
Step 2: Download the HDFC Securities App
First, download the HDFC Securities app from the Google Play
Store or Apple App Store. Once installed, open the app and click on the option
to open a Demat account.
Step 3: Mobile Number Verification
Enter your mobile number in the app. You will be sent a
One-Time Password (OTP) by SMS. To authenticate your mobile number, please
provide the OTP that has been sent to you.
Step 4: Email ID Verification
Next, enter your email ID. Your email will receive yet
another OTP for verification. Enter this OTP in the app to verify your email
address.
Step 5: PAN Details
Enter your PAN card details. To authenticate your account,
an OTP will be forwarded to the mobile number on record. Input this OTP to
continue.
Step 6: Bank Details
Provide your bank’s IFSC code and your bank account number.
You will again receive an OTP for verification. Enter this OTP to verify your
bank details.
Step 7: Upload Signature Photo
Take a clear photo of your signature and upload it to the
app. This is a mandatory step to authenticate your application.
Step 8: Live Photo for Face Verification
For face verification, the app will prompt you to take a
live photo. Ensure you are in a well-lit area and follow the instructions to
capture and upload your photo.
Step 9: Enter KYC Details
You will need to fill in your KYC (Know Your Customer)
details. This includes:
Annual income
Occupation
Mother’s name
Gender (male/female)
Marital status
Step 10: Choose Your Plan
HDFC Securities offers different plans. Choose between a free plan or a more valuable plan based on your trading needs and preferences.
Step 11: Save and Proceed
Review all the information you have entered. If everything is correct, click on “Save and Proceed.”
Step 12: E-Sign Process
You will now proceed with the e-sign process. Click on “Sign Now,” and you will be redirected to the NSDL portal.
Step 13: NSDL Portal Authentication
On the NSDL portal, enter your Aadhaar card number. Tick the checkbox to agree to the terms and click on the “Send OTP” button. Enter the OTP received on your registered mobile number to verify your identity.
Step 14: Account Activation
Once you have completed the e-sign process, your Demat and Trading account will be successfully opened. You will receive an email from HDFC Securities containing your User ID and password.
Step 15: Start Trading
After activation, which typically takes between 2 to 24
working hours, you will receive a confirmation message from NSDL on your
registered mobile number. Once activated, you can start trading immediately
using your new account.
Advantages of Opening
a Demat and Trading Account with HDFC Securities
Choosing to open a Demat and Trading account with HDFC Securities brings a variety of benefits:
Easy-to-Use App
The HDFC Securities app is designed to be simple and user-friendly, making it ideal even for those new to trading.
Fast and Paperless Setup
You can complete the entire account opening process online in just 10 minutes, with no need for any physical paperwork.
High Security
HDFC Securities ensures the highest level of security for your transactions and personal data, keeping your investments safe.
Detailed Research Access
Gain access to a wealth of research reports that can help you make well-informed investment choices.
Live Updates
Receive real-time updates on market data, stock prices, and trading news directly through the app.
24/7 Support
HDFC Securities provides around-the-clock customer support to help you with any questions or issues you might encounter.
Diverse Investment Options
Beyond equity trading, you can invest in mutual funds, bonds, IPOs, and more with your HDFC Securities account.
Why Both Demat and Trading Accounts Are Necessary
You might wonder why it's important to have both a Demat and
Trading account. Here’s the reason:
Trade Execution and Security Storage
A Trading account is necessary for placing buy and sell orders, while a Demat account is essential for holding the securities you purchase. They work together seamlessly to support your trading and investment activities.
Legal Necessity
According to regulations, you must have both accounts to trade in the stock market. A Trading account alone cannot store securities, and a Demat account alone cannot execute trades.
Seamless Efficiency
Linking both accounts allows for smooth and efficient transaction processing. When you purchase shares, they are automatically credited to your Demat account. When you sell shares, they are debited from your Demat account, and the proceeds go to your bank account.
You can visit to HDFC official site for further details by clicking here HDFC Securities Online Demat Account