How to Open a Lifetime Free Demat Account with Free AMC
Opening a Demat account is the first primary step people need to take if they wish to invest in the stock market, shares, mutual funds, and other financial securities. In layman's terms, a Demat account is a savings account to hold financial securities electronically. This blog guides you on how to open a lifetime free Demat account with free AMC or no annual charges with Upstox.
What is a Demat Account?
A Demat or dematerialized account is an account required by investors and traders to hold their financial securities and shares in a digital form. It works in the same way as a bank account. That means when you buy shares or stocks, they will be credited to this account; when you sell them, they will be debited from this account.
In India, such accounts are maintained by the National Securities Depository Limited (NSLD) and the Central Depository Services Limited (CDSL). Keeping mutual funds and stocks in the Demat account has several benefits, such as speedy trades, higher security, and lower transaction costs.
Certain brokers like Upstox offer 3-in-1 demand accounts that integrate savings, Demat, and trading accounts. And then, there are 2-in-1 (Demat + Trading) accounts in which the bank account is linked but is not integrated.
What is a Demat AMC and AMC Free Demat Account?
Demat AMC is an annual fee or account maintenance charge the customer pays to keep their Demat account active. It is generally a fixed expense charged by stock brokers as long as the customer holds the account, irrespective of the security value.
AMC Free Demat Account
Some brokers, like Upstox, offer a free AMC Demat Account. That means customers won't be charged for maintaining this account. However, some conditions may apply. If a person wants to open a free Demat account with no annual charges, Upstox is the right stock broker to count on.
Lifetime Free Demat Account With No Annual Charges
Free AMC Demat Account is offered free of AMC for the account's lifetime. However, some conditions may apply.
The charges for opening a free Demat account online with Upstox are as follows:
Detailed Upstox Pricing for Trading and Investing
For Equity
For Currency
For Commodities
Why Open a Demat Account with Upstox?
Upstox is one of the biggest and most trusted stock brokers in India. Backed by Mr Ratan Tata, the leading stock broker, allows stock investors and traders to open a free Demat account with no annual charges.
However, that's for a limited period. The account opening is free for the first year. For the second year, the customer will be charged INR 300. Plus, brokerage charges are INR 0 for delivery and INR 20/trade for all other segments for free AMC Demat account opening.
Here are more reasons why you should open a Demat account online with Upstox:
- 3-in-1 accounts for investing and trading
- 100% online account opening - no paperwork
- INR 0 annual AMC charges for the first year
- Zero brokerage on delivery trades
- Zero commission* on Mutual Funds and IPO
- The secure and quick onboarding process
- Easy accessibility—log in with a single click
- Interactive filters and lists for hassle-free information access
- How to Open a Free Demat Account?
Setting up a new Demat and trading account with Upstox is easy and convenient. If you want to know how to open a free Demat account, follow these simple steps:
1. Visit Upstox.com and enter your mobile number. Click on 'Create Account.'
2. Sign up with your email address and mobile number.
3. Once your email and number are verified, you will receive an OTP for verification. Verify and then create a 6-digit PIN.
4. Verify your email address
5. Enter your PAN card details, personal details, and address.
6. Enter your digital signature. Click 'Connect your Digilocker with Upstox.'
7. After you click on 'Connect now,' the broker will ask your permission to allow data sharing.
8. Click 'Allow' and then submit a live photograph.
9. Enter the bank details and nominees for your account.
10. Enter the details of the nominees and their identity proofs.
11. E-sign your application. Enter the OTP received on your Aadhaar-linked mobile number.
12. Once you have completed the free Demat account opening process, it takes up to 3 days to verify and open your account.
Documents Required to Open a Demat Account
You will need your PAN card and Aadhar card details for a free Demat account opening online. If you have an account with another broker, your documents will be fetched automatically from the central KYC agency. For that, you will need eKYC.
The Bottom Line
With some limited conditions, you can open a free Demat account online with no annual charges. Also, the free Demat account opening process with Upstox is extremely simple. Most importantly, insignificant brokerage charges will help you save much, especially in the long run.
The web-based trading platform also has helpful tools and hundreds of direct mutual funds for novice traders and active investors. Rest assured, you will also enjoy commission-free delivery trades. So, start by opening a free account and begin trading.