For trading in Indian stock market, the first and foremost step is the opening of a Demat account. SEBI (Securities Exchange Board of India) has made it mandatory for every investor and trader to have a Demat account where securities can be kept dematerialized. So, here we’ll be highlighting the leading and best bank for demat account in India.

Before that, let’s understand the meaning of a demat account.

What is a Demat Account?

Demat account is the place where securities and shares are held electronically. Moreover, if you buy shares with your trading account then they would further be stored in your demat account. And, if you wish to sell certain shares, they would be taken out from your demat account into the trading account. And then made available to be sold in an open market of India at BSE, NSE or any other stock exchanges.

What is a 3-in-1 Demat Account?

Apart from having a Demat account, the investor also needs a savings bank account and a trading account to trade in the stock market. The trading account allows you to trade in stocks while the Demat account holds the stocks which you buy in electronic form. 

Most of the nationalized banks offer the facility of a 3-in-1 account which consists of all three accounts i.e. demat, trading and bank account being opened at a time. Having a 3-in-1 Demat account is necessary so that the accounts are linked together which gives a seamless trading experience to the investor. Together it helps you to trade in exchange for financial instruments such as IPOs, derivatives, stocks and so on.   

Best Banks for Demat Account in India

Here we are listing the top five best banks for demat accounts. The ones that have proven their abilities to their clients in the past by providing best trading platforms and services. 

1. ICICI Direct Demat Account from ICICI Bank

ICICI is a leading private bank in India. It has been into existence for more than two decades. It is also known to offer trading and demat account services with exceptional customer service. An award-winning ICICI Direct, the online trading website and mobile app is among the best in the industry. ICICI Direct is an extended wing of the ICICI group.

If you have a savings account with ICICI, then it is highly recommended that you convert it into a 3-in-1 investment account. You can open a unique 3-in-1 account which allows the seamless trading experience to traders and investors. 

Although the brokerage charges of ICICI Direct are higher in comparison to the other brokers. The cost makes it all worthy owing to the high-quality service provided by the bank to its customers like trading tips, local support and relationship manager. 

2. HDFC Securities Account from HDFC Bank

HDFC Bank is the second-largest and most respectable financial services provider in the industry. In the year of 2000, it started offering the demat account service and held the position of second-largest full-service broker in India. 

It is very convenient for any HDFC bank account holder to open the 3-in-1 account. You can start trading in stocks, corporate FDs, NCD, bonds, mutual funds and many other financial services. 

Being a full-service stockbroker, brokerage charges are very high. However, they offer useful recommendations, research tips, excellent trading platform, proper customer support through their local branches. Further, you get enhanced security and safety features with zero mismanagement. 

3. Kotak Securities from Kotak Mahindra Bank

Kotak Securities is a subsidiary of Kotak Mahindra Bank established in 1994 . They offer a 3-in-1 account in the name of Trinity account with excellent trading and investment options, portfolio analysis, research and trading tips. You also enjoy services of a personal relationship manager and many other features.

Kotak Securities is the fourth largest stockbroker in terms of the number of customers. They also offer many investment options in equity, mutual funds, currency, derivatives, bonds, IPOs, FDs, ETFs, etc. Kotak Securities provides many other facilities like daily SMS alerts, stock recommendations, research reports on the economy. You also gain access to market pointers, investment plans, online chat facilities.

Apart from the investment through this account, one can log in to their Securities Academy which teaches about stock market basics and investments. 

4. Axis Direct Account from Axis Bank

Axis bank is the fastest growing Indian private bank. They offer a 3-in-1 account for investing in the stock market as well as many other financial products like FDs, insurance, mutual funds etc. 

Axis Direct is the subsidiary of Axis Bank Ltd and it was incorporated in the year 2005. Axis Direct is the web and mobile app design to manage online trading a lot simpler for the traders. Research reports, dedicated relationship managers, trading tips and recommendations make them the sixth largest broker in India. And at present, it has over 1.5 lakh, active customers.

You may also like to dig into an Informative Report on Demat Account

5. SBICap Securities Demat Account from SBI Bank

SBI Cap Securities Ltd. is the broking arm of the SBI group. It commenced operations in the first quarter of the financial year of 2006-2007 with an aim of providing primary and secondary capital market access to investors. Although the State bank of India has been with us for decades. Some of the senior citizens still swear by nationalized banks so they generally prefer to open the demat account with these banks. 

SBI offers seamless online investment and trading services through SBI 3-in-1 account to its customers. It is one of the largest full-service broker in India. The traditional broker offers demat account services including its reach to rural areas, a wide range of investment options, online trading platform, strong research and advisory and local customer service.

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You also get some additional features like Instant fund and share transfer facility, low bandwidth option for easy access from anywhere. You can trade in NSE and BSE, round-the-clock access to the back-office. Also, they offer investment options for both resident and non-resident Indians.

Best Demat Account – How to Select?

Are you thinking of investing in the stock market or any other financial products? The first step to start your journey in financial investments is opening a Demat account. And, why to worry when it is just a few clicks away!

Are you new to stock trading? Wondering whether your demat account is safe with the banks? You might be thinking that your trading and demat accounts are operated by the respective banks.

However, that is not the truth. In India, demat accounts are opened and managed by two central depositories – NSDL (National Security Depository Limited) and CDSL (Central Depository Service Limited) which serve as the depositories for NSE and BSE respectively. Banks and Stock Brokers are the depository participants or mediators with either of the central depositories.

For the beginners, however, it is ideal to open the demat account with respective banks as they will be well-backed up with all the necessary facilities. This will provide hassle-free stock market investment experience with a lot of learning through recommendations and research tips. However, in the current scenario discount brokers are also gaining massive popularity.

Once you are accomplished with trading and its pros and cons, you can switch to the leading and top discount brokers in India that include big names like Zerodha, Sharekhan, 5Paisa, Angel Broking and Edelweiss, etc. who will charge less brokerage with good trading facilities.