Absolutely. You can go ahead and open multiple demat and trading accounts. However, you can not open all these accounts with the same Depository Participant or the same broker. It always has to be with a different broker. For instance, I already have a demat account with HDFC Securities. So, if I want to open another demat/trading account, I’ll have to choose a different broker. Here are a few benefits of opening multiple trading/demat accounts –
1) Multiple demat accounts are quite helpful if you are both a trader and an investor. By opening multiple trading accounts, you’ll be able to conveniently segregate the investment portfolio and trading portfolio.
2) When you open multiple demat accounts, you also get the services of different brokers – distinct features!
However, here’s a con –
If you have multiple demat accounts, they will all attract charges in the form of annual maintenance charges (AMC). The AMC ranges between Rs. 700 to Rs. 1000 annually. So, you must know that you will have to pay the AMC on every demat account you open. For instance, if I have multiple demat/trading accounts at HDFC Securities, ICICI Direct, Kotak, etc, I will have to pay for AMC for every account.
Since I only have one demat/trading account at HDFC Securities, I had to pay no AMC for the first year. It’s free for the first year, we only have to pay second year onwards, about Rs. 750 + GST. You can check out more on this. https://www.youtube.com/watch?v=ZqzSjEGj8fo
That’s all, hope this helps!