As stock market investments become more popular in India, holding a Demat account has become necessary for the investment process. Demat accounts enable investors to store their shares and assets in electronic form rather than physical certificates. In this article, you will learn about the best Demat accounts in India for trading.
What is a Demat Account?
A Demat account, which stands for “dematerialized account,” is an electronic account that lets an individual owner trade assets such as shares, bonds, and mutual funds without the need for paper.
It is comparable to a bank account, except instead of money, it houses digital assets. Before, shares were kept in tangible form via share certificates. Unfortunately, it made the whole process of exchanging shares complex and impossible to do on short notice.
To overcome these constraints, the National Securities Depository Limited (NSDL) was founded in 1996. They pioneered the notion of Demat accounts, which could be used to electronically hold company shares and securities. Before you may use a Demat account, you must first convert your physical shares to electronic records. This is usually referred to as dematerialization.
A Demat account is established with a depository participant (DP), who is often a bank or a brokerage. To open Demat accounts in India, the DPs use two depositories: the National Securities Depository Ltd (NSDL) and the Central Depository Services Limited (CDSL).
The DP keeps track of all the shares owned by the investor in their account, as well as the transactions made by the investor while purchasing or selling securities. Read on to know more about best Demat accounts in India.
The Demat account is credited when stocks or securities are purchased. When equities are sold, the account is debited. It is necessary to link your Demat account to your trading and savings accounts to deal in equities and securities using your Demat account.
Best Demat Accounts in India for Trading
In this list of Demat accounts, we’ll explore the features, fees, and benefits of each account, helping you make an informed decision about which one is right for your trading needs. Let us get started.
1. Upstox
Because of its low trading fees and superior technological platforms, it is one of the finest discount brokers and best Demat accounts in India. When compared to other full-service brokers, you may save a significant amount on brokerage fees.
Upstox Demat Account allows you to trade in shares, mutual funds, digital gold, futures, and other financial instruments using a digital account. The software also assists you in making smarter judgments by offering market information in the form of charts.
Features
- Online money transfers are simple and rapid, with support for no-cost UPI transactions.
- Using Universal Search, you can easily search for leading stocks.
- It is available from anywhere due to its simple Web Interface.
- Integrations with third-party applications such as AmiBroker are excellent.
| Segment | Brokerage Charges |
| Equity Delivery | 2.5% or Rs. 20(whichever is lower) |
| Equity Intraday | 0.05% or Rs. 20 per executed order (whichever is lower) |
| Equity Futures | 0.05% or Rs. 20 per executed order (whichever is lower) |
| Equity Options | Rs. 20 per executed order |
| Currency futures | 0.05% or Rs. 20 per executed order (whichever is lower) |
| Currency options | Rs. 20 per executed order |
| Commodity futures | 0.05% or Rs. 20 per executed order (whichever is lower) |
| Commodity options | Rs. 20 per executed order |
2. Zerodha
With over 90 lakh users, Zerodha is the biggest and most reputable discount broker. The main reason for Zerodha’s success is its superior customer service compared to other discount brokers.
With Zerodha, you’ll receive a Kite trading platform with excellent charts, a simple and effective user interface, and other features for improved technical analysis. With a Zerodha Demat account, you may trade stocks, equity futures and options, currency futures, and options, commodities futures and options, bonds, and government securities.
Features
- The trading account includes comprehensive profit/loss, tax, and portfolio reports.
- It supports several regional languages in many languages.
- Zerodha’s trading charts are vast, with over 100 indicators.
- The Zerodha Varsity smartphone app teaches you about trading.
| Segment | Brokerage Charges |
| Equity Delivery | Rs. 0 |
| Equity Intraday | Rs. 20 or 0.03% per order (whichever is lower) |
| Equity Futures | Rs. 20 or 0.03% per order (whichever is lower) |
| Equity Options | Rs. 20 or 0.03% per order (whichever is lower) |
| Currency futures | Rs. 20 or 0.03% per order (whichever is lower) |
| Currency options | Rs. 20 per order |
| Commodity futures | Rs. 20 or 0.03% per order (whichever is lower) |
| Commodity options | Rs. 20 per order |
3. ICICI DirectICICI Direct
ICICI Direct Demat Account is an online platform that allows you to invest in both the domestic and worldwide markets. You can trade stocks, mutual funds, fractional shares, and other assets. ICICI Direct’s user interface may be readily changed according to customer demands, making it one of the best Demat accounts in India for usability.
Features
- Detailed research-backed recommendations and suggestions
- Customers of ICICI Bank can use it as a three-in-one account.
- Even with poor internet connections, their lightweight website can be accessed.
| Segment | Brokerage Charges |
| Equity Delivery | 0.55% per order |
| Equity Intraday | Rs. 20 per executed order |
| Equity Futures | Rs. 0 |
| Equity Options | Rs. 20 per executed order |
| Currency futures | Rs. 20 per executed order |
| Currency options | Rs. 20 per executed order |
| Commodity futures | Rs. 20 per executed order |
| Commodity options | Rs. 20 per executed order |
4. Sharekhan
Sharekhan is a full-service brokerage firm that offers trading, portfolio management, research, mutual funds, and investor education. Sharekhan provides trade execution services for stock cash and derivatives on the BSE and NSE, as well as commodities trading on the MCX and NCDEX. The ‘ShareMobile’ platform from Sharekhan provides trading services via mobile apps. Read on to know more about the top 10 Demat accounts in India.
Features
- Sharekhan Mini may be viewed using your mobile browser even if you have limited internet connectivity.
- Free call and trade service.
- Possibility to utilize the fixed deposit as security for futures and options trading.
- Easily transfer funds online from any bank.
| Segment | Brokerage Charges |
| Equity Delivery | 0.50% per order |
| Equity Intraday | 0.10% per order |
| Equity Futures | 0.10% per order |
| Equity Options | Rs. 50 per order |
| Currency futures | 0.10% per order |
| Currency options | Rs. 30 per order |
| Commodity futures | 0.03% per order |
| Commodity options | 0.03% per order |
5. Motilal Oswal
Motilal Oswal does extensive research to give consumers the best advice. They also offer portfolio management services to assist you to manage your complete portfolio and make the best decisions. It is one of the earliest Demat accounts in India, offering financial services. Their market analysis studies have long been the buzz of the town. Read on to know more about best Demat accounts in India.
Features
- A wide range of assets is available for investment.
- Simple account opening procedure.
- A wide variety of excellent financial services are available.
- One can use facilities in the cash, F&O, and CDS divisions.
| Segment | Brokerage Charges |
| Equity Delivery | 0.20% per order |
| Equity Intraday | 0.02% per order |
| Equity Futures | 0.02% per order |
| Equity Options | Rs. 20 per executed order |
| Currency futures | Rs. 20 per executed order |
| Currency options | Rs. 20 per executed order |
| Commodity futures | 0.02% per order |
| Commodity options | Rs. 200 per executed order |
Also Read: 10 Best Discount Brokers in India
6. 5Paisa
Because of the services that it provides to its consumers, 5Paisa Demat Account is one of the best Demat accounts in India for beginners. It provides you with a variety of trading alternatives, market research tools, learning tools, portfolio analysis tools, and much more. Traders and investors may use 5Paisa to establish the finest Demat accounts and invest in the equities, commodities, and currency markets.
Features
- Only bargain broker that offers in-depth research and consulting services on over 4000 companies.
- A one-stop shop for all investing items.
- Savings of up to 90% when compared to traditional brokers.
- Understanding the market through easy training.
- Allows you to establish a shared Demat account with three other people.
| Segment | Brokerage Charges | ||
| Basic Pack | Ultra Trader Pack | Power Investor Pack | |
| Equity Delivery | Rs. 20 per executed order | Rs. 0 | Rs. 10 per executed order |
| Equity Intraday | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
| Equity Futures | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
| Equity Options | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
| Currency futures | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
| Currency options | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
| Commodity futures | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
| Commodity options | Rs. 20 per executed order | Rs. 10 per executed order | Rs. 10 per executed order |
7. Angel Broking
Angel Broking is a well-known full-service retail stockbroker and one of the best Demat accounts in India. The full-service stockbroker provides the finest trading service in India as well as a variety of trading and investment services such as stock and commodities trading, investment advising, loans against shares, margin funding, and other financial products. It provides you with appropriate research tools for investing your hard-earned money.
Features
- Margin granted up to 5 times the deposit amount.
- You may start trading within 1 hour with digital KYC.
- Services for stock advice and portfolio management.
- You are not required to provide your information in each transaction.
- The entire account opening process is done online.
| Segment | Brokerage Charges |
| Equity Delivery | 0.50% per order or Rs. 0.05 per unit (whichever is less) |
| Equity Intraday | 0.25% or Rs. 20 per executed order (whichever is less) |
| Equity Futures | 0.25% or Rs. 20 per executed order (whichever is less) |
| Equity Options | 0.25% or Rs. 20 per executed order (whichever is less) |
| Currency futures | 0.25% or Rs. 20 per executed order (whichever is less) |
| Currency options | 0.25% or Rs. 20 per executed order (whichever is less) |
| Commodity futures | 0.25% or Rs. 20 per executed order (whichever is less) |
| Commodity options | 0.25% or Rs. 20 per executed order (whichever is less) |
8. IIFL
IIFL Demat Account has been in business for 25 years and is one of the best Demat accounts in India for beginners. It allows you to establish a Demat account for free and provides market analysis tools so that you may invest when you understand market patterns.
IIFL, a subsidiary of the IIFL Group, provides a wide range of trading and investing services for practically all financial instruments, including commodities, equities, derivatives, stocks, loans, FDs, Bonds, and IPOs.
Features
- Extensive market research.
- Portfolio management services.
- Trader Terminal is an advanced trading platform.
- Brokerage is charged at a flat rate of Rs. 20 per trader.
- Research on stocks and mutual funds, as well as stock counseling services.
- No-brokerage equity delivery trading.
| Segment | Brokerage Charges |
| Equity Delivery | 0.25% or Rs. 20 per order |
| Equity Intraday | 0.25% or Rs. 20 per order |
| Equity Futures | 0.25% or Rs. 20 per order |
| Equity Options | Rs. 25 per lot |
| Currency futures | Rs. 20 per lot |
| Currency options | Rs. 8 per lot |
| Commodity futures | NA |
| Commodity options | NA |
9. Kotak Securities
Almost 20 million people use Kotak Securities as it is one of the best Demat accounts in India. It provides a 3-in-1 account, market analysis tools, and trading suggestions.
Kotak Securities is a SEBI registered broker and a member of the NSE, BSE, MCX, and NCDEX, providing its investors with a diverse variety of investment choices in Equity, F&O, Currency, Commodities, IPO, Mutual Funds, Tax-free Bonds, and Stock Lending, etc.
Features
- Market research and suggestions.
- One account that connects to your savings, trading, and Demat accounts.
- Margin trading service.
- Make small investments to establish a low-cost portfolio.
| Segment | Brokerage Charges |
| Equity Delivery | Rs. 20 or 0.25% (whichever is lower) |
| Equity Intraday | Free |
| Equity Futures | Rs. 20 per trade |
| Equity Options | Rs. 20 per trade |
| Currency futures | Rs. 20 per trade |
| Currency options | Rs. 20 per trade |
| Commodity futures | Rs. 20 per trade |
| Commodity options | Rs. 20 per trade |
10. HDFC Securities
HDFC Securities Limited is a subsidiary of HDFC Bank, India’s largest private bank. HDFC Securities offers a 3-in-1 account that combines your savings, trading, and Demat accounts. HDFC Securities is a 20-year-old Demat account provider that allows you to trade digitally, saving you time and effort on paperwork.
Features
- Transferring funds from one account to another is simple.
- HDFC Pro terminal is an internet trading platform with market data and features that are updated in real-time.
- Helpful market research tools.
- Exchange currencies, commodities, initial public offerings (IPOs), stocks, mutual funds, and more.
- Global investing opportunities.
| Segment | Brokerage Charges |
| Equity Delivery | 0.50% |
| Equity Intraday | 0.10% |
| Equity Futures | 0.05% |
| Equity Options | Rs. 100 per lot |
| Currency futures | Rs. 23 per contract |
| Currency options | Rs. 23 per contract |
| Commodity futures | NA |
| Commodity options | NA |
Also Read: 12 Best Stock Market Trading Apps In India
Types of Demat Accounts
There are 3 types of Demat accounts:
- Standard Demat Account: A standard Demat account is intended for ordinary investors who want to keep and trade securities. This account is appropriate for those who invest in the stock market for personal wealth growth and long-term investing.
- Repatriable Demat Account: Non-Resident Indians (NRIs) who want to invest in Indian stocks need to open a repatriable Demat account. This account allows the investor to return the invested funds deposited as well as any profits to their home country.
- Non-Repatriable Demat Account: A non-repatriable Demat account is intended for NRIs who desire to invest in Indian stocks but are unable to return the investment deposited to their residential country. This account is appropriate for NRIs who want to invest long-term in India. Read on to know more about the top 10 Demat accounts in India.
Features of Best Demat Account in India
Now, that you know – what is a Demat account and how is a requirement for those who want to invest in shares and securities. Let’s talk about some of the main features of the best Demat accounts in India:
- Electronic Storage: The basic role of a Demat account is to retain securities in electronic forms, such as shares, bonds, and mutual funds. This eliminates the need for actual certificates and makes holding and trading securities easier and safer.
- Share Transfer: To transfer your shares, just mail a legally signed Delivery Instruction Slip (DIS) to your depository participant. This can be found in several best Demat accounts in India for beginners.
- Automatic Credit and Debit: When an investor purchases stocks, they are automatically credited to their Demat accounts, and when they sell assets, the account is automatically deducted. This speeds up and simplifies the process of trading securities.
- Nomination Facility: Demat accounts in India allow you to name a beneficiary who will get the shares if the account holder dies. This makes it easier for the deceased’s relatives to claim the securities.
- Temporary Freeze: You can freeze the Demat accounts for a set period. This function, however, is usually only available if you have a certain number of securities in your account.
- Loan Collateral: You can use the securities in the best Demat accounts in India as collateral to get a loan from any financial institution.
- Speed E-Facility: NSDL lets you electronically deliver instruction slips to your depository participant. This not only speeds up the procedure but also makes it less onerous.
- Online Access: The majority of Demat accounts in India have online access, allowing investors to examine their holdings, transactions, and account data at any time and from any location.
5 Best Demat Accounts in India for Beginners with Lowest Charges
A discount broker is a stockbroker who offers basic trading services at a lower charge. They give clients a simple trading interface and the option of opening a Demat and Trading Account to trade in the stock market. Let us now begin our list of best Demat accounts in India that are categorized as discount brokers.
1. SAS Online
SAS Online is an excellent entry into the discount brokerage market. SAS Online, founded by two young entrepreneurs, is one of the genuine discount brokers, lowering the trading barrier even more.
It allows you to trade stocks, commodities (MCX), and currencies. SAS Online provides one of the most affordable brokerage services, charging only Rs.9 per trade across all sectors. But, if you trade regularly, you may purchase monthly lump sum plans and make as many transactions as you like without incurring any additional expenses.
2. Samco
Samco Securities offers excellent online discount brokerage services. Samco offers a complete line of high-quality items at a low price. On the Samco dashboard, you can trade stocks, futures and options, commodities, and currencies. Across all sectors and stock exchanges, Samco charges a fixed fee of Rs.20 or 0.02%, whichever is lower.
3. Wisdom Capital
This is another rapidly growing discount broker in India. Wisdom Capital offers services on the NSE and BSE for stocks, futures, and options. It also allows for commodities trading on the MCX and NCDEX.
Investors are drawn to its user-friendly automated online investment platform. They provide three distinct plans and have no account opening fees. Read on to know more about best Demat accounts in India.
4. ProStocks
Prostocks is a rapidly expanding discount brokerage service and is one of the best Demat accounts in India for beginners. The founders have expertise in the brokerage industry and are dedicated to offering excellent service.
It provides a desktop trading tool, a mobile trading application, and a web trading platform. Prostocks charges a fixed fee of Rs.15 for every trade. It provides monthly and annual plans. You also receive an unlimited trading offer, which is useful if you are a high-frequency trader that makes a lot of deals in a month.
5. Trade Smart Online
Another online discount broker with a minimal brokerage in India. Trade Smart Online, a VNS Financial company, has also emerged as a major participant in the discount trading industry.
They, like a few other discount brokers, provide multiple brokerage programs for low and heavy-volume traders. They feature a Value Trading Plan with a 0.007% commission and a 0.07% delivery fee. Read on to know more about how to choose the top 5 Demat account brokers.
Also Read: How to open a Demat Account in India
How to Choose Demat Account?
There are so many brokers and Demat account providers in the market, that it can be quite difficult for traders and investors to choose one. Here are a few things that one should pay attention to while choosing best Demat accounts in India that will meet your requirements.
- Account Opening Ease: SEBI has prescribed a comprehensive protocol for creating a Demat account that the service provider must follow. Service providers, on the other hand, can help to streamline the procedure to some level. The Demat account may be created utilizing the e-KYC method, which allows the entire account opening process to be validated using your Aadhar data. The e-KYC procedure is completed online, with the client just needing to complete a final self-identification.
- Reputation and Dependability of Providers: Pick a DP with a strong reputation and a track record of offering dependable services. Be sure they can be trusted, and if necessary, consult with specialists and check internet evaluations.
- User-Friendliness: Look for one among the top 10 Demat accounts in India that offers an easy-to-use web platform, mobile app, and other user-friendly tools and resources to help you manage and track your assets.
- Look for Analytics: Depository participants are gradually increasing their offerings beyond basic account statements. Account providers have begun to provide online analytics such as direct call-to-action, industry density, real-time pricing, timely alerts, analytics on Demat inflows/outflows, and thematic concentration.
- Fees and Charges: Examine the account starting costs, annual maintenance charges (AMC), transaction fees, and other expenses levied by several brokers to pick the one that is the best Demat accounts in India with good rates.
- Customer Service: Look for the top 5 Demat account brokers that offers timely and effective customer assistance via channels like phone, email, or chat.
- Security: Choose a Demat account company that has strong security procedures in place to secure your assets and personal information. This will help in making transactions without having to worry about anything.
The Indian stock market is expanding at an unprecedented rate, and a Demat account has become a necessary instrument for investors to handle their assets and shares. With so many alternatives on the market, selecting the best Demat accounts in India may be a difficult task for many.
Whether you are a novice or a seasoned investor, this guide will assist you in making an informed selection and selecting the top Demat account brokers that meets your investing objectives.
