Zerodha demat account is one of the services offered by the company. The service is part of its 2-in-1 accounts that offers the customer an integrated trading account and a demat account for seamless transactions between them. Zerodha is a depository participant (DP) with Central Depository Services Limited (CDSL).
Difference between demat and trading account
For example, Zerodha, the biggest stockbroker in India offers 'KITE' as their platform to trade in stocks. Once you have opened your trading account with a stockbroker, you can place your buy/sell orders using those platforms.
Zerodha does not allow you to open only a trading account without the Demat account. Even when you have a Demat account with any other broker, you need to open a Demat account with Zerodha with the trading account to trade in Equity, F&O, Commodity, and Currency.
WHAT IS THE DIFFERENCE BETWEEN DEMAT AND TRADING ACCOUNTS? A trading account is used to place buy or sell orders in the stock market. The demat account is used as a bank where shares bought are deposited in, and where shares sold are taken from.
5. Does Zerodha have annual charges? Yes, Zerodha charge Rs 300 per year Demat Account AMC (Annual maintenance charges) fees. This fee is charged quarterly (i.e. Rs 75 every quarter).
Largest stock broker in India
9+ million Zerodha clients contribute to over 15% of all retail order volumes in India daily by trading and investing in: Futures and Options.
Do I need both - a demat and a trading account? To make the transactions seamless and convenient, a trading account and a demat account are required. The demat account is a repository of your financial securities but is not enough to trade.
Now, there are two ways to open a demat and trading account at Zerodha: Online method. Offline method.
Yes, Zerodha is as safe as any other stock broker in India. Zerodha is a genuine and trusted stock broker. They are among the lowest risk broker for the following reasons: Zerodha is a debt-free.
Zerodha has an official partnership with IDFC First Bank specifically for seamless trading. Also, IDFC First Bank currently gives the best interest rate on savings account balance (7%).
You cannot have multiple demat accounts or multiple trading accounts with the same Depository Participant (DP) or the same broker. Therefore, if you have a demat account or trading account with a DP or broker, you cannot open another account with them.
After some time, your demat account is declared a dormant account (inactive). This means you can't do any transaction until it's reactivated. To reactivate, you have to pay the reactivation fee (~ Rs 500) and clear all the dues (AMC + interest).
Conclusion. It isn't possible to trade shares or other securities without a Demat Account. It is mandated by the SEBI to have a Demat Account to be able to trade in securities. While you can buy IPO shares without a Demat Account, you still need to hold a Demat Account to sell it.
It is very important to have a Demat account to invest money in the stock market. You cannot buy or trade any shares without a Demat account.
No, Zerodha doesn't charge any fee for withdrawing money from your trading account. You can withdraw any amount of money within the withdrawable balance for free of cost. The funds are transferred to your bank account at the end of the day. Funds cannot be withdrawn instantly.
Zerodha does volume business with a highly scale-able online trading platform. This makes it possible for Zerodha to offer trading at an ultra-low-cost. Zerodha doesn't have branch offices, doesn't spend money on advertising campaigns and doesn't offer services like research and advisory.
The founder believes in 'the word of mouth is your true marketing'. Thus, with a very low operating cost Zerodha was able to capture a large number of customers. Interestingly, trading is provided free of cost at his stockbroking firm if the period of holding for shares is longer than a day.
The charge for an online account opening at Zerodha is Rs 200 for the Trading & Demat account.