How To Open 5 Paisa Demat Account – Step By Step Guide

What Is a Demat Account?

Opening a Demat Account is the first step if you are looking to start trading in shares. Demat or dematerialized account is basically an account that can hold all the shares which you possess or trade-in in an electronic format.

While opening a demat account can be a bit cumbersome sometimes, 5 paisa demat account provides you a simpler way to start trading and that too with added benefits.

The term ‘dematerialized’ in a demat account implies that the shares have been dematerialized i.e. converted from physical form to their electronic counterparts.

Since trading of physical shares is quite impossible since the traders are all remotely situated, having the shares online makes it much easier to trade.

Demat account is not just for holding your shares. It can also hold bonds, ETFs, mutual funds and other such types of assets that can hold assets having their own unique ISIN number. 

Also Read: Top 10 Demat Account In India

Who Is 5Paisa?

Which offers services related to all kinds of trading and financial activities. 

This includes trading, investments, funds, advisory, etc. It primarily caters to the retail traders who aren’t directly connected to the stock exchange and are looking for more control over how they trade their shares. 

5paisa has been providing low-cost or discounted services since 2016 in areas such as insurance, investment and mutual funds besides normal trading services.

As said earlier, opening a demat account requires a depository participant. 5paisa acts as that depository participant.

It is registered with the Central Depository Services Limited (CDSL).

Benefits of having a 5 paisa Demat Account are:

• More than 90% savings on all kinds of fees, including brokerage cost.

• Purely online account without any paperwork involved. You just need your Aadhar to get it all set up.

• All the investments besides trading can be managed from a single account.
• Various investment plans to choose from.

• Get yourself a new portfolio for investment and trading. 

Also Read: How to Open Demat Account in Different Broker

How to Open a 5paisa Demat Account?

Opening up a 5paisa demat account is pretty easy. Just follow the given steps to get your account set up and running in no time.

• First of all, you will need a depository participant i.e. a platform that will serve as the holder for your shares and do the transactions. This can be a bank, a stockbroker or some online trading platform. 
• 5 paisa are a competent online trading platform that can serve as the depository participant. 

• After going on the 5paisa site, it gives you an option to open your 5paisa demat account. Here you will need to fill in your KYC details in order to register yourself and open your demat account. 

• The KYC process involves filling in online forms which include personal details such as date of birth, PAN no. etc. Note that PAN card is another necessity while you are going to open your demat account. Also, you will need to submit a softcopy of the various documents asked.

• After this, you will be required to enter your bank account number along with the IFSC code. This is so that the new demat account which is to be created can be linked to one of your existing normal bank accounts. 

• Since the accounting and registration process is completely paperless, you just need to submit a digital copy of your PAN card and address proof. 

• After this, carefully go through all the information which you have filled, and the various documents uploaded so that nothing goes wrong. 

• After you have gone through everything and submitted it, you will be required to e-sign a form digitally using your Aadhar card. Once all the details are verified, your demat account will be open and ready for use. 

Also Read: 5Paisa Vs Trade Smart Online Comparison

Documents Required For 5 paisa demat account

As said before, opening up a demat account online is completely hassle-free and involves only the very basic of documents. When you are going to open up your demat account, you need certain documents whose digital or soft copy needs to be uploaded online. They are:

• PAN Card
• Address Proof. This can be your Ration Card, Telephone Bill, Electricity Bill, Property Tax Receipts, Passport, Bank Passbook, Voter’s ID, Aadhar.
• Bank account number and IFSC code
• Your photo

5paisa Demat Account Login

Once you have submitted all the details and opened your demat account, the platform has to verify it first. After all your documents are verified and KYC done, your account is created, and you can start using it.

For your 5paisa demat account login:

• Go the homepage of 5paisa.com
• On the top right-hand corner of the screen, you will find the option of logging into your account. Enter your e-mail/client code and password and you will be logged in. 

Types of Accounts You Can Open 

Right now, you can open two types of 5paisa demat account.

• The first and the most popular type is the All in one – Investment account. If you are looking to invest in the stocks directly without involving any other person, and also want to invest in mutual funds at the same time, then this is it. This is the one which is poised to suit you the most. You can this Trading + Demat account and start investing in both. 

• The second type is the Mutual Fund Investment Account. This account is a free account using which you can start investing in mutual funds. 

The two types of accounts, Regular (Non-BSDA) account, and BSDA account.

While the regular account does not involve any charges as such, the BSDA account has Rs.100 as Account Maintenance Charge (AMC) in case your shareholding value lies between Rs.50,000 – Rs. 2,00,000. But if the shareholding value is less than Rs 50,000, then there are no AMC charges.

5paisa Demat Account Opening Charges

When you open a normal bank account, you need to pay an initial opening fee for it. Similarly, you have some demat account opening charges when you are going to open a demat account.

Also, in most types of account, there is an Annual Maintenance Charge (AMC) which is a certain amount that you have to pay yearly to maintain your demat account.

While opening a 5paisa demat account, you don’t need to pay any account opening fees. If you haven’t taken a subscription plan, then you have to pay an AMC charge of Rs. 540 per year.

 But if you have opted for one of the two subscription plans, then you don’t need to pay any yearly account maintenance charges.

Also Read: 5Paisa Login Process

5paisa.com Charges for Resident Retail Customers

Some Commonly Asked Questions

Q.1 What commodities can I store and trade using my demat account?

A demat account can be opened not just for shares and investments but also for equities, derivatives, currencies, mutual funds and other commodities. In 5 paisa, you can open an All in One trading account or a Mutual Funds account.

Q2. What benefits can I avail from the schemes?

5 paisa offer you a variety of choices and flexibility when it comes to a demat account. You can choose to invest in stocks or just invest in mutual funds. For this, you can either open an All in One account or just a Mutual Funds account.

• Like many other platforms, you don’t have to pay any brokerage fees corresponding to the value of the transaction. This can save a considerable amount when it comes to small trading transactions. There is just a constant fee of Rs.20 on every transaction which makes it a more lucrative option.
• The All in One account enables you to have a control over various investments and commodities like stocks, mutual funds and insurance.
• Automated bots can respond and solve all of your small day today investment queries.
• A dedicated team of experts which keeps an eagle eye on the stock market can provide efficient and personalized solutions round the clock.
• Assistance will be provided according to the subscription plans. Hence, for a small subscription fee, you can access some high-quality services.  

Q3. What are the brokerage fees in 5paisa?

Unlike other platforms, 5paisa doesn’t charge any brokerage fees. There is just a constant charge of Rs.20 which is levied on all transactions and investments.

Also, there is no account opening fees, processing fees, and yearly account maintenance fees if you own a subscription plan. 5paisa is directly compensated by the Asset Management Company for providing the various trading services.

Where to look for my investments? How can I redeem them?

Redeeming your mutual funds investment is pretty easy and hassle-free with a 5paisa demat account. Just follow these steps to redeem the amount in a short time:

• Open the web browser and go to 5paisa homepage.
• Log into your account and go to the mutual fund’s portfolio.
• In the next page, select the mutual fund scheme which you want to redeem.
• Click on the redeem button.
• Choose the amount which is to be redeemed. 
• Click on confirm.

What is the procedure to transfer my investments?

Transferring funds on an online platform like 5 paisa is very convenient. In case you have chosen the IMPS/UPI credit option, then you will be provided with instant credit for all your fund transfer needs. If you have chosen NEFT or RTGS, then the credit will be provided as per the RBI cycles.