How to Reactivate Your Trading Account

19 May 2025

JM Financial Services

If you're reading this, chances are your trading account has been inactive for a while — maybe months, maybe even years. Whether you paused your investments due to market volatility, personal reasons, or simply forgot about it, the good news is this: reactivating your trading account is usually a straightforward process.

But before you jump in, there are a few things you should know.

In this post, we’ll break down exactly how to reactivate your trading account, what documents you might need, potential fees to watch out for, and some handy tips to get back into the investing game with confidence. Let’s get started.

Why Trading Accounts Get Deactivated :-

First things first — why was your trading account deactivated? Knowing the reason can help you avoid it in the future.

Here are the most common causes:

📉 Inactivity: If you haven’t traded for 12+ months, your broker may mark your account as dormant.
📄 KYC not updated: Regulatory norms require periodic Know Your Customer (KYC) updates.
❌ Policy Changes: Your broker may have revised terms or migrated platforms.
🧾 Missed Documentation: Incomplete PAN linking or signature mismatches can also cause temporary suspension.

Regardless of the reason, the process to reactivate it isn’t usually complicated. Let’s walk through it step by step.

Step 1: Check the Status of Your Account

Before doing anything, log into your trading or demat account — if you still remember the credentials. Some brokers show a clear “inactive” or “dormant” tag next to your profile. Others may block access altogether.

Can’t log in? No worries. Head over to your broker’s website or mobile app and try using the “Forgot Password” or “Recover Account” feature.

Still stuck? It might be time to call or email customer support.

🔍 Pro Tip: You can also check your demat account status on the website of the depository (like NSDL or CDSL in India) using your PAN number.

Step 2: Reach Out to Your Broker

Once you've confirmed your account is inactive, the next step is to get in touch with your stockbroker. Most brokers provide clear instructions on how to reactivate a dormant account, either online or via email.

Here’s what you should ask:

Why was my account deactivated?
What’s the process to reactivate it?
Do I need to submit any documents?
Is there any reactivation fee involved?

Some brokers offer self-service reactivation on their app or website, while others may require you to fill out a physical reactivation form.

Step 3: Update Your KYC

Many times, inactive accounts are tied to outdated or missing KYC information. SEBI regulations require brokers to maintain up-to-date KYC records, so reactivation often involves:

📸 Uploading a photo
🆔 Submitting identity proof (like Aadhaar, PAN card)
🏠 Submitting address proof
✍️ Reconfirming your bank account or signature

Some brokers also conduct an IPV (In-Person Verification), which can often be done through a quick video call.

💡 Quick Tip: If you’ve changed your mobile number, email, or bank details, now’s a good time to update those as well.

Step 4: Submit the Reactivation Request

Once your KYC is updated, you’ll need to submit a formal request to reactivate your trading account. This could be done:

Online: Through your broker’s dashboard
Via Email: Sending scanned forms and documents
Offline: By physically visiting the branch or couriering forms

Most brokers take about 24 to 72 working hours to process reactivation requests.

If you’ve submitted everything correctly, you should receive a confirmation email or SMS saying your account is now active and ready to trade.

Step 5: Log In and Test Your Account

Once you get the go-ahead, log into your trading account to check if everything is working:

If you can place buy/sell orders?
Is your demat account showing up?
Are your funds accessible?
Can you view past holdings?

If anything looks off, don’t hesitate to raise a support ticket or speak to your relationship manager.

Watch Out If your account was dormant for a long time, check whether any shares, mutual funds, or dividends were credited during that period. You may need to reconcile or reclaim them.

Are There Any Charges to Reactivate a Trading Account?

In most cases, reactivating a trading or demat account is free. However, it depends on your broker.

Some brokers may charge a nominal fee (₹50–₹200) for reprocessing or document verification. Also, if your account was suspended due to negative balance or unpaid dues, you’ll need to clear those first.

📋 Reminder: Always read the terms and conditions before signing any reactivation forms.

Things to Do After Reactivating Your Account

Now that your trading account is live again, here’s a quick checklist to help you restart with confidence:

✅ Update Contact Details: Make sure your phone number, email, and address are up to date.

✅ Link Your Bank Account: If you’ve changed banks, link your new account for smoother transactions.

✅ Enable 2FA Security: Set up two-factor authentication for added safety.

✅ Revisit Your Portfolio: If you had holdings, review them and decide if they still align with your goals.

✅ Learn from the Past: Was your account inactive because you lost interest? If so, set investment reminders or schedule regular reviews.

Should You Consider Switching Brokers Instead?

Sometimes, reactivating an old account might not be worth the effort — especially if:

The brokerage charges are high
The user interface is outdated
Customer service is poor
Your financial goals have changed

In such cases, you might want to open a new trading account with a better platform. Many modern brokers offer free account opening, zero commission trading, and advanced tools for beginners.

Just make sure to transfer any holdings from your old demat before closing the inactive account.

Final Thoughts

Reactivating your trading account doesn’t have to be a hassle. Whether you're looking to jump back into the market or simply want to reclaim control of your financial assets, the process is usually simpler than most people think.

Here’s a quick recap: