Can you have more than one Demat or Trading account?

Trading account is a must-have thing before starting an investment in stocks. It is a kind of Demat account that can be opened with a SEBI-registered broker. These brokers generally are the banks and security investment institutions that provide services like trading, advisory, delivery, broking etc. In exchange of these services, the brokers charge fixed brokerages from investors. 

Avinash Gorakssakar, Sr. Fundamental Analyst, told Zee Business Online, "Yes it's always a good option to have trading accounts as this is useful in case anyone is having a technical issue and can help an investor in either selling or buying securities."

Is it allowed or legal to open more than one trading account in India? As per the laws, there is no such restriction on having more than one Demat account as long as they are opened with SEBI-registered brokers. 

The trading account helps in understanding the markets, making it convenient for investors to trade. All brokers provide the users with an application, software or access to a website for trading. 

These online websites or smartphone applications have a built-in portfolio tracker, profit and loss calculator, stock selector, stock search tools, news reports, buy and sell suggestions from experts etc.

An investor can open more than one or two accounts under the same name if he is a professional trader and trades at large volumes. 

"It is beneficial in specific situations where one broker is unable to execute orders for clients, but typically investors don't prefer more than two trading accounts unless someone is an active trader and wants leverage from various broking houses," said Gorakssakar 

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The investors can easily open more than one accounts with different brokers after verification and documentation. 

However, in case of an application for a new Initial Public Offer (IPO), one application per PAN is allowed.