HDFC Bank provides its investments and trading services through HDFC Securities, which further offers the HDFC Demat Account. HDFC Securities, with its corporate office in Mumbai, has been one of the leading stock brokers in India since the year 2000.
It provides a one-stop solution for all investment-related needs like equity, gold, mutual funds etc.
One can avail its services through phone, HDFC Securities branches and online. There are more than 2.03 million demat accounts spread across a network of more than 3500 demat centres across the length and breadth of the country.
In this article, let us try to learn various aspects related to HDFC demat account.
HDFC Demat Account Opening Demo
The whole process of HDFC demat account opening is very simple and consists of a few basic steps. It can be opened online as well as offline.
1. Offline Method
One needs to download the account opening form from the HDFC website and submit it along with the KYC (Know Your Customer) form and required documents for address proof, PAN card, identity proof like driving licence, passport size photographs etc.
One also needs to submit a cancelled cheque along with the other documents. After the verification process is completed in a maximum of 2 – 3 days, an account gets opened.
Online process of HDFC account opening is a paperless and hassle-free experience.
One needs to fill some basic details and submit all the scanned copies of required documents online. An account opening form along with KYC form can be filled to make the process more convenient.
The whole process will take a few minutes to complete and an account will be opened as soon as the verification part is complete from HDFC Securities’ end.
One gets all the username and password related details as soon as the account is opened.
HDFC Demat Account Features
Here is a quick look at some of the features offered in the HDFC Demat Account to its clients:
Imperia, Preferred and Classic are the kinds of plans that HDFC Securities offer and they differ on the basis of pricing.
Corporate benefits like dividends, bonus, rights, etc. get added directly in one’s account automatically.
One does not need to pay stamp duty on transfer of securities held in Demat form.
HDFC Net banking shows a demat tab which can be viewed in order to check one’s investments and statements.
There are a few more features but we have tried to limit the most usable features here.
HDFC Demat Account Review
HDFC Securities offers three different schemes under which a demat account can be held by a person. Now, we are going to discuss them one by one.
1. 2 in 1 Account: This comprises of HDFC bank demat account along with HDFC Securities Trading account. The demat account will be used for storing all the investments and trading account will be used for trading and making transactions.
Account Opening Charges Related to HDFC Demat Account = ₹0
Annual Maintenance Charges for the First Year = ₹0
Second-year onwards charges are based on transactions. The higher the transactions, the lower are the charges.
2. 3 in 1 Account: This comprises of HDFC bank savings account, HDFC bank demat account along with HDFC Securities Trading account.
Account Opening Charges Related to HDFC Demat Account = ₹0
A waiver of ₹750 on Annual Maintenance Charges for the First Year. Charges of annual maintenance from the second year will also depend on the transactions. The higher the transactions, the lower are the charges.
3.Demat account: This can be opened on a standalone basis without opening any other kind of account with HDFC. One can also visit a branch to open this account.
Here is a quick look at some of the benefits of using HDFC Demat Account for your trades and investments:
1. The integration of bank account, demat and trading account under 3 – in – 1 account makes it quite convenient to use for its customers.
2. One platform can be used for investments in stocks, mutual funds, insurance, initial public offerings, bonds, post office savings schemes, etc. HDFC provides a one-stop solution for all investment-related needs.
3. Trading platforms and app provided by HDFC are user-friendly and easy to use.
4. Corporate benefits like dividends, bonus, etc. get credited to one’s account directly.
HDFC Demat Account Problems
Every coin has two sides. Therefore, there are some disadvantages of opening HDFC demat account too. These disadvantages have been discussed below –
1. The brokerage charged by HDFC Securities is very high in comparison to the brokerages charged by discount brokers in India.
One can get an idea from the minimum brokerage amount that they charge for any transaction which is ₹25, which is very high as compared to brokerages of discount brokers.
This makes the costs of the traders high and in turn, less profitability.
2. Commodity trading cannot be done through HDFC Securities Trading cannot be done on MCX and NCDEX.
3. It is very expensive to trade in penny stocks through HDFC because the brokerage charged on trading the scrips of value less than ₹10 is ₹0.05 per share.
HDFC Demat Account Closure Form
If, however, you wish to close your HDFC Demat account with the broking company, then you just need to fill up the account closure form and submit to the support team of the broker.
The HDFC Demat Account closure form can be downloaded from here.
HDFC Demat account services are used by lakhs of customers in India.
One can open a demat account with HDFC either under 2 in 1 account which comprises of trading and demat account or under 3 in 1 account which comprises of the services of savings account, demat and trading accounts on the same platform.
HDFC demat account can be opened online as well as offline. One just needs a few basic documents like PAN card, driving licence, passport-sized photographs, etc.
The account opening and maintenance charges have been mentioned earlier in the article.
Whenever a transaction is done, there are many costs related to it like brokerages which depend on the broker through which the transaction has been made and other transaction costs like STT, SEBI charges, etc.
The details of all these costs including depository charges have been shared earlier in the article.
HDFC securities Mobile Trading App is available on Google play store from where it can be downloaded on any android phone and used for seamless trading experience.
One should carefully analyse different aspects related to this while making a decision to open an account with HDFC Securities.
Advantages of HDFC demat account include options to choose from 2 in 1 account and 3 in 1 account and facility to invest in initial public offerings, mutual funds, post office schemes, bonds, equities, etc.
Disadvantages of HDFC demat account include higher brokerage costs as compared to discount brokers in India, non-availability of the facility of trading on MCX and NCDEX (commodity trading).
While deciding which service provider to choose for holding a demat account, one should pay attention to factors like costs related to the account, brokerages charged across different segments, its benefits, disadvantages, etc.
One should also be clear about his / her requirements from a demat and trading account. After keeping all these things in mind, one can easily make a wise choice. Stay aware, stay wise!
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More on HDFC Securities
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