The basic need for participating in the Indian financial sector is a Demat account. A trading account is equivalent to a demat account. To invest and trade in the Indian stock market, you’ll need both of these accounts.
However, people usually search for Can you have Multiple Brokerage Accounts as many people want their long term investments separately from short term trading. Let’s Find out the answer of having multiple brokerage accounts.
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Can you have Multiple Brokerage Accounts?
Yes, having multiple brokerage accounts is not any issue at all. There are no limitations on the number of demat accounts that you can open. However, There are some conditions and restrictions from the Securities and Exchange Board of India (SEBI) which you need to follow while having multiple brokerage accounts.
Things to Know About Opening Multiple Demat Accounts
These are some things you should keep in your mind while opening several demat accounts:
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Same Stockbroker
Having several Demat and trading accounts is completely legal. However, there is a restriction associated with it. With the same Depository Participant (DP) or brokerage, you cannot have numerous Demat accounts or trading accounts.
As a result, if you already have a Demat or trading account with a Stock Broker, you won’t be able to open another one with them.
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Annual Maintenance Charges
Annual maintenance fees will be charged on each demat account (AMC). Although if your demat account is idle and no transactions are being made, the DP will collect this fee. The annual AMC fees range from Rs. 300 to Rs. 1000. As a result, you must be informed that you will be required to pay the AMC on each demat account you set up.
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One Trading account can do the job
It is not necessary to open additional trading accounts in parallel to multiple demat accounts. One Trading account can do the job for multiple demat accounts.
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Different Service standards
You can use the facilities of various brokers by opening multiple demat accounts. Every broker is unique, and their services will differ from one another. However, having numerous demat accounts gives you access to a wider range of stockbroker and research reports, as well as a wider range of trading tools and systems.
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Monitoring
You must keep track of the cash balances and activities in your different demat accounts on a frequent basis. This can be interesting for people who do full time trading as well as difficult for people who stay busy in other jobs or business.
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Issues with Unused accounts
When you open multiple demat accounts, make sure you don’t leave any of them unused for an extended length of time. This is due to the risk of a demat account being frozen if it is left unattended. You’ll have to submit your eKYC again to reactivate it.
After understanding Can you have Multiple Brokerage Accounts. Let’s Checkout the pros and cons of having multiple Brokerage accounts.
Advantages of Having Multiple Brokerage Accounts
- You can effectively divide your investment portfolio if you have different trading accounts.
- When you open numerous trading accounts with different companies, you gain accessibility to a multitude of stockbroker and analysis data as well as a number of trading tools and systems.
- For numerous trading accounts, there is no minimum number of demat accounts required. One demat account can be linked to many trading accounts.
- Your assets in digital form in your Demat accounts are safe as you will have multiple accounts with different stock brokers.
Disadvantages of Having Multiple Brokerage Accounts
- Keeping track of several trading accounts might be difficult because you must use separate apps for each account.
- You need to remember multiple passwords like login passwords, T-pins and Security Passwords well.
- There are varying opening and annual maintenance fees for different trading accounts. As a result, if you have many trading accounts, you will have to pay different fees, which will raise your spending.
- If you have many trading accounts, you may find that you aren’t using some of them. When such accounts are idle for an extended length of time, they may be frozen.
How to Open Multiple Brokerage accounts?
You need to follow the below process to open account :
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Stock Broker
The first step in opening a Demat account is to select a Stock Broker. Stock Broker companies are available in India through banks, stockbrokers, and internet investment platforms. When selecting a DP, look for a service provider whose services and features match your demands and expectations.
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Demat Account Opening form
To open a Demat account, go to your Stock Broker’s website and complete out the online Demat account opening form. Many Stock Brokers, such as Zerodha & Upstox allow you to open both trading and demat accounts.
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KYC
After you’ve completed the Demat account application, you’ll be requested to complete the Know Your Customer (KYC) requirements.
This will necessitate the submission of necessary documents of KYC documents including proof of identification, proof of address, bank account statement, and proof of income.
It’s a smart idea to have all of the necessary paperwork on hand before submitting, since this will help you get through the form more quickly.
Verification process
Once KYC is completed, your DP will begin processing your Demat account application. You will be given a unique Beneficial Owner Identification Number once your application has been approved (BO ID). Your Demat account is accessed using this BO ID.
Login ID, Password & T-pin
Once your BO ID will be available you will receive an email with your login id and password. While T- Pin will come via sms on your mobile. T-pin will be required to sell your stocks which you will hold in your demat account.
Conclusion
There are personal requirements which decide whether you need to open multiple Demat accounts or not. However, There are some advantages and some disadvantages of it which was mentioned above.
This is all from our side regarding how many trading accounts a person can have? To Open Demat Account with Indian Number 1 Discount Brokerage Click Here and If you have any doubt about trade multiple accounts simultaneously india let us know in the comment section.
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Aims and Objectives of Demat Account
FAQ About can i have multiple brokerage accounts
Can I have two Demat accounts in India?
Yes, You can open Two Demat accounts in India. However, You need to open them with different stock brokers as the same stock broker is not allowed to open two demat accounts of the same person.
How many trading account one can have?
One can have as much as trading accounts he wants to open. However, He must open it with different brokerage firms as one stock broker is only able to open one account for one person.
One demat multiple trading account?
Yes You can open one demat & multiple trading account with different stock brokers. However, You cannot open multiple trading accounts with the same brokerage.
Trade multiple accounts simultaneously India?
Yes, You can trade multiple accounts simultaneously in India. It is legally possible and there are no restrictions on this.
Can I have 2 demat accounts linked to the same bank account?
yes, You can have 2 demat accounts linked to the same bank account. There are no restrictions on opening 2 or more demat accounts with the same bank account.
