What Is A Demat Account?
Opening up a Demat Account is the first step if you are looking to start trading in shares. Demat Account or a 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, Trade Smart 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.
Who Is Trade Smart
Located and operating from Mumbai, Trade Smart is a popular online broking platform that offers broking services at subsidized or discounted rates. Using this platform, you can trade in stock, commodity, and currency with both the stock exchanges present in India i.e. the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange).
Trade Smart has been offering its online broking services since the year 1994 and hence has established and consolidated its position in the market.
It has an extensive reach and a wide customer base owing to its stock, commodity, and currency market investors and traders. It maintains its relations with the help of sub-brokers and various franchises.
Besides normal stock and commodity services, you can trade in NSE Cash, NSE F&O, and currency derivatives. Trade Smart is a trustworthy depository service of CDSL and allows you to trade in various BSE commodities and MCX as well.
How To Open A Trade Smart Demat Account?
Unlike most other online broking services that allow you to fill up an online application form, Trade Smart has a bit different application procedure for opening up a demat account. It offers three different ways of opening up an account.
But even though the process is different and not entirely online or paperless, each of these processes is still quite simple and convenient. You can use any one of the three to easily get your Trade Smart demat account started.
1) Filling up an online application form:
This is the most preffered and perhaps the most convenient of the three processes. This is because it enables you to set up the account in minutes and get started with it. The only thing it requires is an internet connection which you must have at all times.
Considering that you have internet connectivity and want to open your demat account in this way, you can follow the steps given below to get started in a matter of minutes.
- First of all, you need to go to the homepage of the Trade Smart website.
- When the website gets opened, you will find an “Open My Account” option on the screen. Select this option to proceed to the account opening application page.
- In the next step, you need to fill up an online application form. Here you need to fill in details such as your name, date of birth, permanent and correspondence address, bank account details, etc.
- Also, you need to attach the various documents which have been listed in the application form.
- After you have rechecked the information and uploaded the relevant documents, you can submit the application form
After submitting, your application will be verified and scrutinized. Once everything is done, your account will be opened, and the details will be sent to your registered mobile number as well as your e-mail ID. After this, all that remains is for you to log into your account and start trading.
2) Downloading and Submitting the Form offline
In case filling up an online application form is not feasible for you, you can always choose to go for its offline counterpart.
In this, you first need to download the application form in PDF format. This form contains the sections pertaining to various personal information such as your name and address, bank details, etc.
You need to fill in the information in various sections using black ink only. Also, the form has indicators in the form of numbers that indicate the places where you need to sign in the application form.
After you have filled the application form and attached the required documents, you can send it, duly sealed in an envelope to Trade Smart head office.
Here your details and documents will be verified after which your account demat account will be opened.
3) Requesting a courier
In case you can’t take a printout of the form yourself or there is some problem in it, you can always request for a physical copy of the form, which you can fill and send back to get your Trade Smart demat account opened.
But in case you go for this option, you will need to pay a fee of Rs 100 to get the application form.
Documents Required for Trade Smart Demat Account
No matter which one of the three account opening options you choose to go with, you will need to upload or attach certain documents that will help to verify the details provided by you and your identity.
Here is a list of documents which you need to submit to open up your Trade Smart Demat Account:
- One self-attested copy of the PAN card.
- A self-attested copy of the bank statement pertaining to the last six months.
- A self-attested copy of the address proof which can be your voter ID, driving license, passport or even your phone bill.
- A canceled cheque.
- The cheque for initial balance
Advantages of Having A Trade Smart Demat Account
- You get to choose from two different plans for brokerage. Hence, you can choose an optimal plan to suit your trading style.
- In case you are trading via the mobile application of Trade Smart, you get both Bracket Order (BO) as well as Cover Order (CO).
- In case your chosen plan doesn’t suit you, you can easily switch to the other brokerage plan without much hassle.
- You don’t need to have any initial minimum balance in your account. Even if there is no money, it’s totally fine.
- Unlike other discount brokers, Trade Smart has an extensive network of franchises and sub brokers.
- You get the option of trading in mutual funds.
- Margin against the shares traded is available.
Disadvantages of Having A Trade Smart Demat Account
- Like many other online brokers, you do need to pay a price of Rs 20 per trade for every call and trade option.
- You don’t get the option of having a 3 in one or a mixed account.
- Intraday trading can prove to be a bit expensive.
Trade Smart Demat Account Opening Charges
In case you want to open a Trade Smart demat account, you first need to pay an account opening charge of Rs 200. But this is only a one-time charge meaning that you won’t have to pay the charges again. Also, an account maintenance charge of Rs 300 per year is levied from the second year onwards.
The various charges associated with a Trade Smart demat account are listed below:
|Account opening charges||Rs 200|
|Account maintenance charges||Rs 300|
|Call and Trade charges||Rs 20 per trade carried out|
|Demat AMC for individuals||Rs 300 plus GST|
|Demat AMC for corporates||Rs 1000 plus GST|
|Demat transaction charges||Rs 15 plus GST|
|Trade on phone||Rs 20|
|Third party fund transfer||Rs 400|
Trade Smart and one of the many online brokers available in the market right now, but it has been operating for long and there are many features that make it stand apart in the crowd. Nevertheless, since investing your money is a big thing, it would be better if you keep all the above-mentioned points in mind while going to open your Trade Smart Online demat account.
Some Commonly Asked Questions
Is opening a demat account necessary to open up a trading account?
There is absolutely no need to open up a Trade Smart demat account in order to open a trading account. You can independently open up any kind of account.
What are the various account maintenance charges involved?
In the case of Trade Smart online, you do need to pay an annual account maintenance charge in case you have a demat account. This charge is levied from the second year and is Rs 300.
What is the procedure to transfer my funds?
You can transfer the funds to Trade Smart demat account in multiple ways. This includes various payment gateways along with a check or can also easily transfer the funds online.
Can an existing demat account of mine be linked with a new Trade Smart Online demat account?
Absolutely. You can easily do this on any of the Trade Smart platforms and integrate your accounts. In fact, in case you have a previous demat account, the account opening process will be much shorter for you because your KYC has already been done and all the information is readily available on the central servers.
Can I open more than one trading account in my name?
No. While you cannot open more than one trading account in your name with the same broker, you can register the account with a different broker.
Stockquantum was founded by Dharmendra Mukati in 2018. I am a Trader and Investor in the last 10 years.
I am writing here about stock broker review, broker comparison, IPO investment, Crypto currencies, technical analysis, fundamental analysis, sub brokership, mutual fund, personal finance, and our experiences.