How to Use a Demat Account and Start Currency Trading Online in India

Stock market investing has gained immense popularity and still on a rising trend in India. A Demat and Trading Account is the most common medium through which investors can make investments. If you do not currently have a Demat Account, you can open a Demat Account online for free. A Demat Account is mandatory to gain access to the entire stock market. It allows users to hold securities they buy through their trading accounts in a dematerialised form. 

To open a Demat Account, you need to register with a depository participant. Also, if you wish to engage in currency trading, you can also open a currency trading account with a Forex broker. 

Demat Account Online Application:

To open a Demat Account online, you need to select a depositary participant. A depositary participant acts as an intermediary between the investor and the depositary. Opening an account requires certain documentation that must be submitted during the online application.

Points To Note: 

When opening a Demat Account, you can list a nominee who can inherit your account. A maximum of three nominees can be selected per account.

  • If any information shared with your depository participant needs to be modified or updated, you can raise a request with your depository participant. 

Opening A Trading Account 

Before you can start using your newly created Demat Account you need to open a trading account as well. A Demat Account holds onto your investment securities, but to engage in buying and selling of stocks, you require a trading account. Thankfully, most of the popular depository participants allow a user to open a Demat and Trading Account simultaneously. Therefore, it is best to pick a depositary participant that offers this convenient feature.

Indeed, after successfully opening a Demat Account, you’ll need to complement it with a Trading Account to actively buy and sell stocks and other securities in the financial markets. While the Demat Account holds your investments in electronic form, the Trading Account acts as an interface through which you can place buy and sell orders.

The process of opening a Demat and Trading Account is often streamlined by various depository participants or brokerage firms, making it convenient for investors to do both simultaneously. Many popular depository participants offer integrated services, allowing you to apply for both accounts together, simplifying the overall account creation process

Once you have obtained your Demat and Trading Account access, it must be linked to your bank account. Due to today’s advanced technology, linking your bank account has become a simple and convenient process. 

Using Your Demat Account 

When you log into your Demat Account by using your login credentials, you will be able to view your investment portfolio after you invest in some securities. Gaining familiarity with the tools and services offered on your Demat and Trading Account is important at this stage.

Investing in the stock market can carry an element of risk and new users should initially tread with caution and good investing habits. A good way to begin is to understand the financial objectives you wish to obtain by investing. Considering your investing budget and risk appetite will help you decide the type of assets you should be investing in. Understanding market trends and various investment strategies can help you experience financial growth with more stability.

If you wish to track your progress, you can receive an in-depth statement of all your transactions and the status of your holdings by requesting a statement of account. 


A Demat and Trading Account is crucial to investing in the Indian stock market. You can open a Demat Account online for free. Ensure that you possess the necessary documents when filling out your Demat Account application. Many depository participants offer individuals the opportunity to open a 2-IN-1 Demat and Trading Account. 

If you wish to engage in currency trading, you have to open a currency trading account with a forex broker. You can add up to 3 nominees on your Demat Account. Remember to check your statements of accounts regularly.

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