How to Open a Demat Account on Groww?
5 Dariya News
28-Dec-2020
The very first thing you need when you are starting your stock investing journey is a ‘Demat account’. A Demat account, or Dematerialized account, is a type of account for traders which is used to deposit shares and securities in an electronic format. It is similar to a bank account; the only difference is, a bank account holds cash and the Demat account holds shares and other securities. Opening a DEMAT account with Groww is a seamless process. In this article, we have shared a detailed guide for the same.
Benefits of Opening a Demat Account on Groww
Free Demat Account: The greatest perk of opening a Demat account on Groww is it is completely free; Groww doesn't charge anything to open a Demat account for you. Further, there is no account maintenance charge to keep the Demat account running. Investors are only charged a small brokerage amount equal to Rs 20 or 0.05% of the order value, whichever is lower.
Seamless account opening: The process of opening a Demat account with Groww is completely online and the entire process won’t take more than 5 minutes. Groww offers a 2-in-1 Demat and trading account opening. With technology at its forefront, all the necessary information of the investor is obtained on the platform itself and verified using softwares and API integrations with Banks, depositories etc. Technologies such as ML and image processing are also employed during the onboarding and KYC process for document verifications etc to make the process as quick as possible.
Consolidated, easy to understand information : Groww stocks platform has a very clean and minimalist interface- straightforward process flow- users are not bombarded with unnecessary information. Everything is explained in very simple language.
All the necessary information such as Nifty and Sensex live updates, filters like top gainers and top losers of the day and top companies as per market cap are categorised as well on the landing page clearly. There is a search or navigation bar where you can simply enter the name of the stock you are looking to invest in. Further, investors can view all information about a stock and the company on a single screen.
This includes historic performance of a stock, opening and closing price for the day , the amount of buy/sell orders,company statistics and financial ratios, company information, financial statements (quarterly, profit and loss, balance sheet, and cash flow), shareholding pattern, and peer comparison.
The app also allows investors to place a market or limit order as well as assess the bid/offer spread of the stock. All the vitals of a company are presented in a tabular or graphical format for clarity. Buying stocks on Groww is as simple as buying items on an e-commerce site. You can simply select the stock you wish to buy and add to your cart. Once your order is placed you can also check all your holdings and their current price.
Stepwise Procedure to Open a Demat Account on Groww
Step 1: Download the Groww app and sign up or log in if you have an account already. Check for the ‘Stocks’ tab and click on ‘ complete setup’.
Step 2: Click on the ‘Open Stocks Account‘ option to proceed. The account opening charges on Groww are zero.
Step 3: Provide the details about your occupation, income, mother’s and father’s name to complete the KYC process. Check the details once and click on ‘Next’ to continue.
Step 4: Input your trading experience from the drop-down list and click on ‘Next’ once done.
Step 6: In this step, you need to submit your Aadhaar number to the e-sign service following which you will receive an OTP on the registered mobile number linked to your Aadhaar. To e-sign, click on ‘E-SIGN AOF’. Enter the OTP/security code sent to your mobile and click on ‘Submit’.
Step 7: Go through the Demat account opening form carefully and click on ‘Sign Now’ to proceed.
Step 9: You will be redirected to NSDL electronic signature service. Here, enter your Aadhaar number or Aadhaar virtual ID and then click on the ‘Send OTP’ button. Enter the OTP to complete the e-sign process.
Step 10: You will see a screen that says ‘Signed successfully‘, and subsequently a screen which says ‘ you can start investing now’. Click on ‘Let’s start’ to proceed.
The verification will be completed within 24 hours, post which you can start investing!