Please help me with this situation.
I have a registered demat account with say, ABC. At the same time, I have a trading account (not demat, just for derivative trading) with Zerodha. I want to switch the demat account from ABC to Zerodha, so that I can do intraday trades too, since their brokerage is too high; and my sole purpose is intraday trading. Now, I want to know the following.
- The procedure for this.
- Do I need to open a separate demat account in Zerodha before I can transfer the old demat account from ABC to Zerodha?
- After I switch the old demat account to Zerodha, can I close the accounts with ABC?
- After switching, if I trade in Pi or Kite through the ABC demat account, will the brokerages be as per Zerodha?
Thanking you in advance.
At Zerodha, you can map a DEMAT from another broker to your trading account.
But in essence, this is pointless, because, any shares you purchase on our platforms, you will not be able to view them and you won’t be able to sell them from our platforms. This is cos we won’t have POA for the DEMAT and there’s no other mechanism to overcome this.
You have two options:
If you are just going to be trading intraday, you don’t need a DEMAT account. You just need to make sure you close all your positions before the market closes.
Open a DEMAT account with Zerodha.
If you want to transfer shares in your old DEMAT account to Zerodha, you will have to follow this procedure after your account is open.
You should be able to close the account with the other broker once you transfer shares, and pay any outstanding dues if any.
I hope this answered your query!