You need to open a Demat account along with a trading account to start investing or trading. A trading account helps you buy or sell financial securities & a Demat account holds your securities in digital format.
Let’s say you have a Demat account with a broker. All of a sudden you decide to go with a different broker or platform. No matter what the reason is behind this decision.
You might start thinking of many questions related to this decision. The first question that will hit your brain might be; Can I use my current Demat account with another broker or platform?
So, Can You use SBI Demat Account in Zerodha?
Even though one Demat account can be mapped to multiple Trading Accounts (Brokers), most brokers do not provide the feature to map your existing Demat account with them, and Zerodha might be one of them.
The process of Demat mapping is so easy: you need to provide some details of your current Demat account with the new broker, and the rest is done by them.
If Zerodha does not offer the feature to map an SBI Demat account, there might be some possible reasons discussed below.
Let’s look at the possible reasons.
Zerodha’s platform will not be compatible with the SBI Demat account due to the differences between their technology, procedures, and policies.
2. Internal Policies
Each broker has different internal policies. Zerodha may have some internal policies that limit or restrict the mapping of external Demat accounts.
3. Loss of Brokerage fee
If you link an external Demat account with Zerodha, you can buy shares from Zerodha but you will have to sell them with your external Demat account provider. As a result, Zerodha won’t be making any business profit.
4. Account Handling Issues
There might be many account handling issues after you link an external Demat account with Zerodha. To escape these issues, it is the best way to open a Demat account with Zerodha. This will be a smooth experience for customers and the broker.
It is best to open a Demat account with Zerodha if you want to enjoy its services smoothly and free of any kind of hassle.