Important safety tips before opening an online demat account

The financial year 2025 saw India cross 192.4 million active demat accounts, the highest ever in the country’s history. This impressive figure highlights how more Indians are showing interest in the financial markets. 

A demat account serves as your digital vault, which holds all of your financial securities, such as stocks, ETFs, and commodities. But while opening one has become simpler and faster, doing it without proper safety checks can expose you to severe risks like fraud, identity theft, or long-term financial complications. 

So, before you sign up, it is a must to know what to look for. 

Choose a demat app with market trust

A stock market or demat app usually lets you open an online demat account within 15 minutes using your Aadhaar, PAN, and bank account details. However, a crucial aspect to look into is whether the app is backed by a SEBI-registered and well-established public entity with a solid legacy in Indian capital markets. You must check how many years the broker has operated, how many users have downloaded the app, and what kind of reviews exist outside paid promotions. 

A large, engaged user base and high download figures on official app stores often signal reliability. 

Scrutinise the platform’s security features

A demat app should offer robust security features like Two-Factor Authentication (2FA), which requests you to verify your identity with a second device or OTP. This makes it much harder for unauthorised users to access your account. 

Also, always opt for strong, unique passwords and change them regularly. Keep your login credentials private, even from known people and never store passwords in your email or notepad.

Read terms and conditions to assess data privacy  

When you create a demat account on an app, you share your PAN, Aadhaar, bank account details and even your signature. This extremely sensitive information could be misused if the platform lacks appropriate digital safety safeguards. Make sure the platform’s privacy policy clearly states how your documents are handled and protected.

Don’t use public Wi-Fi to open a demat account

This may sound minor, but it is a major point. Public Wi-Fi in cafes, airports, or co-working spaces is not very safe for financial activity. Use a private and secure internet connection on your personal device. Make sure your browser and antivirus software are updated before proceeding.

Verify 24/7 customer support

In case of account access issues, suspicious activity, or order execution problems, timely assistance is important. A responsive support system reflects the app’s operational strength and accountability. Check if multiple contact channels are available, including phone, email, and in-app support. 

Limited or delayed customer service can put your investments and trades at high risk during urgent situations. Hence, always confirm support standards beforehand.

Be cautious, stay safe

Opening an online demat account is a major financial step. From verifying SEBI registration to reviewing data security, every detail matters. Rushing through the process or neglecting warning signs can put you at serious risk, such as financial loss and identity theft. That is why you must assess the app’s credibility, transparency, and user support before sharing your personal information.

For safety-conscious users, MO Riise is an option worth considering. It is backed by Motilal Oswal, a SEBI-registered public entity, and trusted by over 40 lakh traders and investors. To maintain maximum security, MO Riise integrates powerful security features, including two-factor authentication, and provides 24/7 assistance through multiple channels.

Besides high security, you also benefit from multiple asset classes, UPI-based investments, high-quality research on stocks, useful technical analysis tools, and educational content. Moreover, with access to StoCoMo, an in-app community of traders and investors, you stay connected, informed, and engaged.

Open a demat account on MO Riise today!