The Indian securities market investments have a lot of potential to beat inflation and fulfil our various financial goals. To invest here, we need to open a demat account.
But how many demat accounts can we have? And, is it even beneficial to have more demat accounts?
To understand this, we are going to answer eleven questions on multiple trading demat account openings in India.
Can I Have Multiple Demat Accounts?
Yes, it is possible to have two or more trading demat accounts in India. While opening demat accounts at multiple places can offer benefits like diversification and access to different trading platforms, it can also introduce trading and record keeping hassles along with potential costs.
Therefore, before deciding to open additional accounts, you can carefully consider your purpose, investment choices, financial goals, risk appetite, time commitment, and brokerage fees. It is essential to consider these points before you open demat account at multiple places.
Can I Open Two Account With The Same Mobile Number?
Yes, you can typically open two Demat accounts with the same mobile number. Most brokerage firms in India allow you to use the same mobile number for multiple online demat accounts.
However, it is important to note that some brokers may have specific requirements or limitations, such as requiring a different email address for each account. It’s always best to check with the broker’s terms and conditions or contact their customer support to ensure you meet their criteria before opening multiple trading demat accounts.
How Can I Take Profit And Loss Statement Of Demat Account?
So, you selected not one best trading platform, but a multiple of demat and trading accounts. You can use your demat login on your demat app to find all your documents like tax statement, ledger statement, P&L (Profit and Loss) statement and more. If you have caret mutual demat app logins, then you need to login to each one of them for these documents, separately.
How We Use Demat App?
Juggling multiple Demat apps and logins can be overwhelming, especially if you are an active investor. The constant switching between different platforms can be time-consuming and prone to errors. Here are some strategies to streamline the process:
1. Use A Password Manager:
- Centralised Storage: Store all your Demat account passwords in a secure password manager. This way, you only need to remember one master password.
- Auto-Fill: Password managers can automatically fill in login credentials, saving you time and reducing the risk of typos.
- Security Features: Many password managers offer advanced security features like two-factor authentication and biometric verification to protect your accounts.
2. Organise Your Apps:
- Folders: Create separate folders on your smartphone or computer to group Demat apps together. This makes them easier to find and access.
- Favourites: Pin frequently used apps to your home screen for quick access.
- App Shortcuts: Some smartphones allow you to create app shortcuts on the home screen, providing a more streamlined way to access specific features within the app.
3. Leverage Notifications:
- Alerts: Enable notifications for important events like price changes, order executions, and dividend payments. This ensures you’re always up-to-date with your investments.
- Customization: Customise notification settings to receive alerts only for the events that matter most to you.
4. Consider A Unified Platform:
If you have multiple Demat accounts with the same brokerage firm, explore whether they offer a unified platform that allows you to manage all your accounts from a single app or web portal. This can simplify your investment management process.
5. Use A Financial Dashboard:
- Aggregation: A financial dashboard can aggregate data from multiple Demat accounts, providing a comprehensive overview of your investments.
- Performance Tracking: Monitor your portfolio’s performance, track dividends, and analyse your investment strategy.
- Goal Setting: Set financial goals and track your progress towards achieving them.
6. Practise Good Security Habits:
- Strong Passwords: Use strong, unique passwords for each Demat account. Avoid using easily guessable information.
- Two-Factor Authentication: Enable two-factor authentication whenever possible to add an extra layer of security.
- Regular Updates: Keep your apps and operating system up-to-date to protect against security vulnerabilities.
By following these strategies, you can effectively manage multiple demat app and logins, saving time and reducing the risk of errors.
How To Find Trading Account That Does Not Charge Brokerage On Loss Trades?
While it is not always easy to find a brokerage that doesn’t charge you for losing trades, some might offer special deals or plans.
Here’s how to find them:
1. Research And Compare:
- Online Tools: Use websites and forums that compare different brokerages.
- Brokerage Websites: Check the websites of different brokerages and read about their fees.
- Customer Reviews: Look for what other people say about different brokerages.
2. Focus On Specific Plans:
- Special Offers: Some brokerages might have temporary deals or special plans with no fees for losing trades.
- Special Plans: Look for plans designed for beginners or small traders that might include this feature.
3. Consider Other Fee Structures:
- Per-Trade Charges: Some brokerages charge a flat fee for each trade, regardless of whether you win or lose.
- Monthly Plans: Others might offer monthly plans with a fixed fee, which could mean no or lower fees for individual trades.
4. Negotiate With Brokerages:
If you trade a lot or have a big portfolio, you might be able to negotiate better terms, including lower or no fees for losing trades.
5. Beware Of Hidden Fees:
Even if a brokerage doesn’t charge you for losing trades, they might still charge for other things like keeping your money safe or using their trading platform.
Here are a few important things you can remember:
- Minimum Trade Size: Some brokerages might have a minimum amount you need to trade to get no fees on losing trades.
- Terms and Conditions: Read the fine print of any plan that offers no fees for losing trades.
- Customer Support: Choose a brokerage with good customer service in case you have any problems or need help.
While finding a brokerage with no fees for losing trades can be helpful, it’s important to consider the overall cost and quality of services offered by different firms. A good balance between low costs and reliable services is crucial for long-term success in the Indian stock market.
How Many Demat Accounts Are There In India?
There are different demat app types based on bank account linkage, purpose of trade, asset classes and investor categories in India.
Can I Open Multiple Demat Account With Same Mobile Number?
Yes, you can typically open multiple online Demat accounts with the same mobile number. However, some brokers may have specific requirements or limitations, so it is always better to check with them directly.
What’s The Advantage Of Adding Demat Account In Income Tax account?
Adding your Demat account details to your income tax account provides several advantages.
- First, it ensures accurate reporting of your securities transactions, preventing penalties and interest charges.
- Second, it simplifies the tax filing process by allowing you to easily import capital gains and losses directly into your return.
- Finally, it helps you stay organised and avoid missing any relevant tax deductions or credits related to your investments.
How To Trade In Multiple Accounts Without API?
You can consider using a trading platform that supports multiple account management or exploring API integration options for a more efficient approach.
How Many Demat Accounts Can You Have?
As such, there is no limit to the number of trading demat accounts allowed for each investor.
Which Account Is Used For Storing Shares, Bonds And Mutual Funds?
When you purchase these securities, they are virtually stored in your demat account.
Conclusion
It can be a hassle to open and maintain multiple demat accounts for an investor. However, depending on the purpose, cost-benefit analysis and tax implications, investors can decide on the number of demat and trading accounts they should open.
