Stock trading is a complex mechanism and includes a plethora of elements that work together at all levels. From choosing the right stockbroker in India to picking up the most profitable stock for investment, these elements work towards a common goal which is to reap heavy profits. And, among all these elements, the most important thing is a Demat account in India. A Demat account is the first thing you would need on your expedition to stock investing. Let’s get to know more about the Demat account and the top Demat account options in India you can choose to go with.
Table of Contents
What is a Demat account?
Dematerialization is referred to by the term “Demat.” The shares and securities traded are dematerialized and kept in digital format in a Demat account. This, in turn, allows for simple and quick trading by traders and investors from anywhere. This also reduced the possibility of fraud or theft which was quite common with conventional, paper-based stock trading on paper.
If you are planning to invest in shares in the current environment, having a Demat account is a prerequisite. All investors who desire to engage in share trading must have a Demat account, according to a 1996 ruling issued by the Securities and Exchange Board of India (SEBI).
Why a Demat account is necessary?
There are numerous benefits of using a Demat account for stock trading:
- A digitally safe method of keeping securities and shares
- Eliminates physical certificate theft, counterfeiting, loss, and damage
- Quick share transfers
- It gets rid of pointless paperwork.
- Demat account opening online is easier and quicker.
- It simplifies and streamlines the share trading procedure.
What does dematerialization mean?
Dematerialization, which makes it simple to retain and access share certificates from any location, is the process of turning the physical share certificates into electronic form. Previously, shares were maintained as tangible certificates that were difficult to keep and transfer. It became much simpler to manage shares with the introduction of a demat account. An investor must create a demat account with a depository participant in order to convert their physical shares into digital form. (DP).
How do Demat accounts function?
The majority of the time, shares purchased are kept in demat accounts.
- You must sign into your Demat and trading account, which is connected to your bank account if you wish to purchase or sell a specific share.
- The Depository Participant immediately passes a “buy” or “sell” order made in a trading account to the stock market.
- If the order is to “buy,” the stock exchange then looks for a seller who wants to sell shares. If the price matches, the order is transmitted to clearance houses, which debit the seller’s demat account and credit the buyer’s demat account with the appropriate number of shares.
How to choose the best Demat account in India?
Although each brokerage offers its own Demat account to the customer, it is still important to select the finest Demat account in India that offers a variety of services, reduced fees and facilitates efficient stock trading. You will learn about the top 10 Demat accounts in India in this post, which are favored by both novice and seasoned traders and investors alike. Additionally, it’s important to remember that picking a Demat account that can assist you in achieving your trading goals is more important than just selecting the best Demat account in India with great reviews and features.
Here are the List of Top 10 Demat accounts in India you can choose from.
| S.No. | Stockbroker | Demat Account Opening Charges | Demat Account Maintenance Charges (AMC) |
|---|---|---|---|
| 1. | Zerodha | Zero | Rs. 300 |
| 2. | Upstox | Zero | Zero for first year, 150 from next year onwards |
| 3. | Angel One | 0 | Rs. 240 |
| 4. | Axis Direct | 999 | Rs. 650 per year (no cost for 1st year) |
| 5. | ICICIdirect | Zero | Rs. 300 (no charge for the 1st year) |
| 6. | IIFL Securities | Zero | Rs. 250 (No cost for the 1st year) |
| 7. | Sharekhan | Zero | Rs. 300 (No charge first 3 years) |
| 8. | HDFC Securities | Zero | Rs. 750 |
| 9. | Kotak Securities | Zero | Rs. 600 |
| 10. | 5Paisa | Zero | Rs. 300 |
Zerodha
Boasting a client base of over 10 million, Zerodha is mainly popular for providing affordable brokerage services coupled with the finest Demat account in India. You may establish a trading and depository account with Zerodha and have access to real-time market data, in-depth charts, and other resources that ultimately aid in making wise investing decisions.
Zerodha, which began as the country’s first bargain brokerage business, has advanced thanks to its top-notch stock trading services for investors and traders. The main selling point of Zerodha is its $0 brokerage for delivery-based trading. Another reason why most investors use Zerodha to create the finest Demat account in India is that it offers exceptional customer support.
Some major features of Zerodha Demat Account are:
- Round-the-clock customer support
- Next-gen market research tools
- Value-based stock trading platforms such as Kite by Zerodha
- Wide-ranging discount brokerage plans
- Zero brokerage for equity delivery
- Auto credit of earned dividends
- Free Demat account opening
- Full-fledged learning platform – Zerodha Varsity
- A new-age mutual funds investment platform, Coin
- 3-in-1 account opening facility
| Charges | Price |
|---|---|
| Trading Account Opening Charges | Rs. 200 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 300 |
Upstox
Among various leading stock brokers in India, Mumbai-based Upstox is also included. Previously known as RKSV Securities, Upstox provides a single platform for investing in mutual funds, equities, futures, digital gold, and other financial instruments. In addition to facilitating quick and simple Demat account services in India, Upstox also provides cutting-edge desktop and mobile trading platforms for all kinds of investors and traders. With Upstox, opening a Demat account is instantaneous and paperless.
Some salient features of opening a Demat account with Upstox are:
- Maximum Rs. 20 per trade order for non-delivery trading
- Zero commission for delivery trading and mutual funds
- Free Demat account opening
- Zero-cost Demat account opening and affordable account maintenance charges
- Upstox Pro – Advanced trading platform
- 3-in-1 account feature for IndusInd Bank Savings Account Holders
| Charges | Price |
|---|---|
| Trading Account Opening Charges | 0 |
| Trading Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | 0 for the first year and Rs. 150 from next year onwards |
| Demat debit transaction charge | Rs. 13 + Rs. 5.50 (CDSL charges) per scrip |
Angel One
Formerly known as Angel Broking, one of the best stockbrokers in India, Angel One provides a wide range of financial products in addition to having the best Demat account in India. With its founding in 1987, it is also one of the nation’s oldest stockbrokers. Traders and investors can invest in currencies, shares, initial public offerings (IPOs), commodities, mutual funds, futures, and options through the stock brokerage service.
In addition, Angel One has a strong network of branches and sub-brokers that are present in all of India’s main cities. Angel One is famous for providing excellent financial advice and top-notch trading tools. The first significant full-service broker is Angel One which offers its customers lower brokerage rates.
Some salient features of opening a Demat account with Angel One are:
- Zero-cost trading platforms
- No-cost research and advisory available for clients
- Flat brokerage ‘Angel iTrade PRIME’
- Standard Rs. 20 brokerage for trading across all categories including F&O, Intraday, Currencies, and Commodities
- Angel ARQ, a rule-based investment engine for giving investment suggestions to traders and investors
- Loan service
- No cost for fund transfer
- Open a free Demat account
- Option to call RM in case of problems
- Bonus issues, right shares, or stock divisions are automatically refreshed in the Demat account
- Availability of training and hand-holding to new investors
- Margin trading service
- Availability of security as a collateral feature
| Charges | Price |
|---|---|
| Trading Account Opening Charges | Rs. 0 |
| Demat Account Opening Charges | Rs. 0 |
| Trading Account Maintenance Charges | Rs. 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 240 |
Axis Direct
Counted among India’s top full-service stockbrokers, Axis Direct provides the best Demat account in India. Your capacity to diversify your investments is made possible by the Axis Direct account, which brings all investment options under one roof. Additionally, the Demat system makes it simple to settle deals, transfer shares from physical to electronic ownership, and manage an investment portfolio as a whole. You have access to all the resources you require to trade stocks, including financial education, market data, top-notch research, and efficient tools when you use the best Demat account in India.
Key Features – Axis Direct
- 0 AMC for 1st year
- Fast and secure trading in stocks, bonds, mutual funds, ETFs, derivatives, and other investment products
- 3-in-1 account including savings account, trading account, and Demat account
- Value-based stock trading tutorials
- Easy availability of insightful online courses, webinars, and articles
- Online funds transfer
- Open a free Demat account
- Brokerage-free equity delivery trading
- Just Rs. 20 for F&O, and Intraday trading
- A wide range of financial products under one umbrella
| Charges | Price |
|---|---|
| 3-in-1 Account Opening Charges | Rs. 999 |
| Demat Account Opening Charges | 0 |
| Demat Account Maintenance Charges | Rs. 650 Annually (no cost for 1st year) |
ICICI Direct
ICICIdirect is one of the largest retail stock brokers in India and is supported by the ICICI group. ICICIdirect offers a variety of services across the BSE, NSE, and MCX, including trading in equity, commodities, and currencies. Along with wealth products, house loans, loans secured by securities, fixed deposits, bonds, NCDs, mutual funds, and initial public offerings, the stock brokerage company also provides these financial services. For trading and investing in the Indian stock market, the ICICI Direct Demat account is regarded as a secure, user-friendly, and web-based account.
The most notable aspect of ICICIdirect is its 3-in-1 account, which includes the best Demat account in India, an ICICI Bank account, and a trading account. The brokerage plans offered by ICICIdirect are the Neo Plan, I-Secure Plan, and ICICIdirect.
Some salient features of opening a Demat account with ICICI Direct are:
- Free Demat account opening
- Zero brokerage for trading in equity futures
- No-cost stock trading tips and recommendations
- 3-in-1 account for a fast and simple trading experience for traders and investors
- Low-bandwidth trading portal for slower internet connection
- ‘my GTC Orders’ feature which enables a trader to determine the date until when the order will stay valid.
- Earn 3.5% interest on money available in their account
- SMS alerts
- Open a Demat account for free
- Digital account statement on a monthly statement
- eATM or Equity ATM – investors can receive funds of up to Rs. 50K per day within half an hour of order execution
| Charges | Price |
|---|---|
| Trading Account Opening Charges | 0 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 300 (no charge for the 1st year) |
IIFL Securities
As one of India’s most reputable full-service stockbrokers, IIFL Securities was founded in 1995. A division of the prestigious IIFL Group, IIFL Securities offers online trading and research-based advice services for a variety of products, including stocks, derivatives, commodities, loans, insurance, fixed-income securities (FDs), bonds, and initial public offerings (IPOs).
Trading and Demat accounts are available from IIFL Securities, allowing investors and traders to transact both online and offline on the BSE, NSE, MCX, and NCDEX. Due to a good branch network, opening an IIFL Demat Account is possible both online and offline.
IIFL Securities – Key Features
- Totally digital and robust, zero-cost Demat account opening
- Flat Rs. 20 brokerages for intraday, delivery, and F&O
- No-cost equity and mutual fund research services
- Advanced and user-friendly mobile trading platform
- Choose to freeze the Demat account
- Branch-based support for faster grievance handling
- one of its kinds of equity SIP plan
- Dedicated Relationship Manager (RM) for physical trading advisory and support
- Advanced order types like Valid Till Date (VTD) order
- Wide-ranging financial products like bonds, stocks, mutual funds, derivatives, corporate fixed deposits, and insurance
| Charges | Price |
|---|---|
| Trading Account Opening Charges | 0 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 250 (Free for the 1st year) |
| Demat debit transaction charge | Rs ₹25 per debit transaction per debit transaction |
Sharekhan
A registered trading member of the BSE, NSE, and MCX is Sharekhan, a full-service stockbroking business with headquarters in Mumbai that was established in 2000. In addition to facilitating trading in stocks, derivatives, commodities, currencies, initial public offerings, and mutual funds, the broker also provides margin trading services. All clientele, including individual traders, investors, NRIs, companies, and institutions, are catered to by the broker.
A volume-based pricing structure with a fixed percentage of brokerage charge on all trading categories is a feature of the full-service broker. It is quick and simple to open the best Demat account in India with Sharekhan.
Sharekhan Key Features
- Wider brokerage slabs to tackle investors’ diverse needs
- Free call & trade service
- Highly advanced training, seminars, and workshops
- Fixed deposits can be used as collateral for future and options trading
- Option to link up to 5 Demat accounts to trading account
- No charges for online funds transfer
- Excellent customer support
| Charges | Price |
|---|---|
| Trading Account Opening Charges | Rs. 0 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 300 (No charge for first 3 years) |
HDFC Securities
One of the top full-service stock brokers in India, HDFC Securities was established in 2000 and is registered with SEBI. Additionally, it belongs to the NSE, BSE, MCX, NSDL, and CDSL. The stockbroking company, which is a division of HDFC Bank, offers its clients the opportunity to trade and invest in a variety of financial instruments, including bonds, shares, futures, options, buybacks, initial public offerings (IPOs), mutual funds, commodities, currency derivatives, stock portfolios, etc.
The least-priced brokerage is offered by HDFC Securities, which charges Rs 20 for each transaction involving the trading of futures and 0.10% for each deal involving the delivery of shares. The greatest Demat account in India, trading, and a savings bank are all included in an HDFC Securities 3-in-1 account.
Some salient features of opening a Demat account with HDFC Securities are:
- Quicker, hassle-free digital account opening procedure
- The lowest brokerage of 0.01% per order for equity delivery
- Relationship manager service
- Margin trading availability
- Detailed portfolio monitoring
- Various trading platforms to choose from
- Diverse brokerage plans
- Zero commission on the mutual fund’s investment
- 3-in-1 account opening
| Charges | Price |
|---|---|
| Trading Account Opening Charges | Rs. 999 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 750 |
Kotak Securities
Indian full-service stock broker Kotak Securities Ltd was, established in 1994 and offers retail clients a 3-in-1 account (Bank + Trading + Demat Account). It offers chances for stock, mutual fund, and derivative investing. (stocks, commodities, and currencies). In addition, it offers services for portfolio management, depository services, research, insurance, and margin trading finance. (PMS). The company also provides direct access to American markets.
Key Features – Kotak Securities
- Invest in US stocks
- Get regular alerts, research reports, stock suggestions, market indices, and others
- Account opening for NRIs
- Customer support available on call and by email
- 3-in-1 account opening facility
- Wide-ranging brokerage plans
- Auto credit of dividends in the registered bank account
| Charges | Price |
|---|---|
| Trading Account Opening Charges | Rs. 999 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 600 |
5Paisa
5Paisa is counted among the top discount stockbrokers in India. It offers its clients to trade in currencies, commodities, and stocks on the BSE, NSE, and MCX. Regardless of the order amount, category, or exchange, the stockbroker assesses a fixed brokerage fee of Rs. 20.
5Paisa offers the Basic Pack, Power Investor Pack, and Ultra Trader Pack as its three subscription packages. All of these programs come with a variety of bonuses, from no account starting costs to flat rates that drop from 20 to 10 rupees.
Salient features of opening a Demat account with 5Paisa are:
- Easy integration with all trading applications.
- Option to keep mutual Funds in the same demat account.
- Easy and quick online and offline transfer of shares.
- Option to freeze the demat account for a particular period to avoid misuse.
- Access the Demat account via the portal, mobile trading app, website, and desktop trading application.
- Direct deposit of dividends in the associated bank account.
- Bonus issues, right shares, or stock splits are automatically updated in the Demat Account.
| Charges | Price |
|---|---|
| Trading Account Opening Charges | Rs. 999 |
| Demat Account Opening Charges | 0 |
| Trading Account Maintenance Charges | 0 |
| Demat Account Maintenance Charges (AMC) | Rs. 300 |
| Debit transaction charge of 0.025% | at least Rs 25 per Debit transaction |
Conclusion
If you have been seeking the best Demat account in India, you can choose from the aforementioned 10 Demat account alternatives in India that have been considered best to deliver an electrifying stock trading experience. For sagacious decision-making related to stock trading, it is strongly advised to thoroughly investigate the top stockbrokers in India and each of their Demat accounts. Keep a careful eye on the cost and other charges as they make up the entire amount you spend to maintain your Demat account.
FAQs – Best Demat Account in India
1. What is a Demat account?
Ans. A dematerialized account is another name for a demat account. A Demat account is primarily used to store shares and securities electronically. It aids you in online trading activities such as stock purchases, sales, and the conversion of actual stock into electronic form.
2. What documents are required to open a Demat account?
Ans. The documents required to open a Demat account are a PAN Card, address proof, and bank proof. A rightly filled out Demat account opening form can go a long way in affirming that your account is opened easily and quickly.
3. What is the major purpose of a Demat account?
Ans. The foremost objective of having a Demat account is to maintain the securities in an electronic format which reduces the likelihood of forgery, manipulation of documents, and theft.
4. Is opening a Demat account free?
Ans. In most cases, stockbrokers don’t charge any amount for opening a Demat account. However, it is better to check it from the broker you will associate with.
5. How many Demat accounts is it possible to have?
Ans. Each of the four Demat accounts that a single investor may have must be with a separate Depository Participant. Although SEBI has not imposed any restrictions, you should be aware that maintaining Demat accounts is not free.
6. Is there any eligibility for a Demat account opening?
Ans. Yes, there are eligibility criteria for opening a Demat account. Generally, Individuals should be at least 18 years old with valid identity and address proofs, as per regulatory requirements or minors can also have a Demat account. Still, it needs to be operated by a guardian until the minor turns 18.
7. Are Demat accounts and trading accounts the same?
Ans. No, Demat accounts and trading accounts are not the same. A Demat account holds shares and securities in a digital form, while a trading account allows you to buy and sell shares in the stock market.
8. What is BSDA?
Ans. BSDA stands for Basic Services Demat Account which has been recently introduced by SEBI for small investors. It’s a regular Demat account with no maintenance charge if the holding value is below ₹50,000 and incurs an annual fee of ₹100 for holdings between ₹50,000 and ₹2 Lakh.
