Through this post, we’ll take you on a tour through the Best Demat accounts in India. You’ll learn about Best Demat account in terms of lowest brokerage charges in India. Get familiar with the best stock brokers in India offering a range of discount brokerage models and full service broking services.
Demat Account in India: Review
Finance is the backbone of our economy and every one of us has got financial genes in us. You don’t believe me? After reading this post, you’ll surely agree with me. It’s a market-oriented world. That simply means, we have surpassed the fight for veggie and clothes and moved to fight for better to best financial returns now.
Now, we like to deal in the financial markets. From savings account, fixed deposits to going through the market for buying and selling shares, stocks, debentures, and commodities, we do it all!
Out of 10 people now mostly 5 or more persons have a shareholding in his or her name. Correct me if I am wrong! We as an individual have diversified our investment options and now understand the importance of the stock market industry.
So, what connects a stock market with stock holding and ultimately us? The answer is simple it’s a “DEMAT ACCOUNT”.
What is Demat account? Meaning
We have moved out of full paperwork and registration process for acquiring shares. Now, we just go online to buy or sell these financial instruments. Opening a Demat account provides you a platform which enables to buy and sell these products online.
It is similar to any saving bank account, but instead of your cash it holds your financial instruments like shares, debenture, options, etc.
In simplest terms, demat account is a repository of all your financial instrument holdings.
Demat Account: Benefits & Offers
The next questions which pops in our mind are, what does a demat account offer? So, here is a small summary on the same. Apart from being a repository and a platform for all your financial holdings, a demat account benefits with the below services:
- Demat account is the basic necessity for entering and transacting into the market. This account helps oneself to buy, sell and transfer the shares in the market.
- This account not only holds your shares, but also saves and holds all the dividend or interest earned on your financial instruments. These incomes are directly deposited to the linked account.
- The best part of opening a Demat account is that we can access these account from anywhere and through any mode (i.e. your computer or smartphone).
- Demat account helps us to convert physical shares into electronic and vice-versa.
- This account can be pledged for securing loans. Thus, the account balance and holdings can form collateral security for your financial need.
- These accounts come with “Freeze” Feature. So, in the case where you see suspicious activity in your account, you can freeze your account which will stop anyone accessing your account. Hence, the safeguard mechanism is absolutely easy and similar to credit cards. Therefore, you can freeze and de-freeze your accounts as per your needs.
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How can I open a Demat account?
Like bank accounts, for opening a demat account in India, an individual needs to submit:
- Proof of income (Like Income Tax Return acknowledgment, Form 16 or salary slip).
- Proof of Identity (Like AADHAAR, PAN card, driving license, voter ID).
- Proof of address (Like AADHAAR, PAN card, driving license, voter ID, bank passbook).
These accounts are opened through Depository Participant (DP). Many of the banks and the financial institutions provide easy demat account opening facility.
In fact, it is just a matter of few minutes. Yes, you read it right! You can get your online demat account opened instantly with some of the stock brokers in India.
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Demat Account Opening Cost Involved
Normally, demat account opening charges are different for different service providers. But, the service provider charges brokerage for letting a user use their platform and transact into the market.
Also, on a general basis there is an annual account maintenance charges imposed on such account.
Low Brokerage Demat Account in India:
Nowadays, many of the platforms run on a low brokerage model. The online trading platforms like Zerodha and 5paisa allow their users to directly buy-sell the shares from the open market.
Moreover, some trading platforms don’t charge any brokerage fees for operating the account. There is only one-time account opening cost. But, every individual saves a huge amount in brokerage fees which enhances the income and return yield on investment.
That’s why these stock trading platforms are earning huge popularity among the general public.
Best Demat Accounts in India: Review
So, let me take you through a few popular and best demat account providers to understand the cost involved with each of them:
1. Zerodha Demat Account
Zerodha is referred as the pioneer in discount broking. In fact, Zerodha account is said to be India’s largest discount broker in terms of the number of users. Although, it has a nominal one-time account opening fee of Rs.300 only and an AMC of Rs.300 only, but the impeccable services offered are surely worth it.
If offers brokerage rate of .01% or Rs.20 per executed trade, the lower of the two. Therefore, it has capped the brokerage to Rs.20 per executed trade, no matter how much is the transaction volume.
Zerodha Demat Account Benefits:
- Free equity delivery i.e. no brokerage on delivery.
- The maximum brokerage is Rs.20 per trade irrespective of volume.
- A margin of 4 to 10 times.
Zerodha Account Opening Charges
| Transaction | Fees |
|---|---|
| Trading & Demat Account Opening Charges | Rs.200 (One time) for Online Account Opening |
| Trading Account Maintenance Charges (AMC) | Free |
| Demat Account Maintenance Charges (AMC) | Rs.300 |
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In fact, Zerodha has emerged to be the biggest player in the best stock brokers list in India. Thanks to its user friendly portal, a number of trading platforms like Zerodha Trader, Kite, Zerodha Pi etc. Moreover, its huge user base and their growing trust further makes Zerodha outshine the rest of the brokers.
Zerodha Brokerage Charges
| Brokerage | STT | Transaction Charges | GST | SEBI Charges | Stamp Duty | |
|---|---|---|---|---|---|---|
| Equity Delivery | Zero brokerage | 0.1% on buy & sell | NSE: 0.00325% BSE: 0.003% per trade | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
| Equity Intraday | 0.01% or Rs. 20/executed order whichever is lower | 0.025% on the sell side | NSE: 0.00325% BSE: 0.003% per trade | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
| Equity Futures | 0.01% or Rs. 20/executed order whichever is lower | 0.01% on sell side | NSE: 0.0019% | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
| Equity Options | Flat Rs. 20 per executed order | 0.05% on sell side (on premium) | NSE: 0.05%(on premium) BSE: 0.003% per trade (on premium) | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
| Currency Futures | 0.01% or Rs. 20/trade whichever is lower | No STT | NSE: 0.0009% BSE: 0.00022% | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
| Currency Options | 0.01% or Rs. 20/trade whichever is lower | No STT | NSE: 0.035% BSE: 0.001% | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
| Commodity Futures | 0.01% or Rs. 20/trade whichever is lower | 0.01% on sell side (Non-Agri) | Group A: 0.0026% Group B: Pepper: 0.00005% Castorseed: 0.0005% KAPAS: 0.00005% RBDPMOLEIN: 0.001% | 18% on (brokerage + transaction charges) | Agri: ₹1 / crore Non-Agri: ₹10 / crore | State Dependant |
| Commodity Options | 0.01% or Rs. 20/trade whichever is lower | 0.05% on sell side | Zero | 18% on (brokerage + transaction charges) | ₹10 / crore | State Dependant |
In a nutshell, this is one of the most favoured discount brokers in India owing to its wonderful services and friendly customer support. Indeed, it’s my favourite too!
2. 5paisa Demat Account
Another popular discount broker that has made its mark in the stock broking world, 5paisa definitely deserves to be added to this list. 5paisa charges a flat brokerage of Rs.10 for trade irrespective what amount is traded.
The normal account opening charges for 5Paisa is Rs.650 only. However, you can also grab a free demat account opening facility that is running for a limited period only.
5paisa is a unique service provider which allows their users to invest in mutual funds, buy an insurance policy through the same demat and trading account.
Apply for Free 5Paisa Demat & Trading Account
3. Wisdom Capital Demat account:
Wisdom capital provides demat account facility with differential account facility and brokerage charges.
The account and respective brokerage charges offered are:
Lifetime Freedom Plans: Under this account, a user can trade for free.
Pro Plans/Add-Ons: These accounts are good for professional traders who need higher intraday exposures or margins and advance trading tools. But these are chargeable account and the user has to pay brokerage charges on every trade.
Ultimate Plans/Add-Ons Plus: Ultimate Plans are designed to satisfy the needs of Traders who need the highest intraday exposures or margins in intraday & delivery trades. But these are chargeable account and the user has to pay brokerage charges on every trade. The brokerage rate is higher than that of pro-plans account.
4. ICICI Direct Demat and Trading Account
Apart from being a nationalized bank, ICICI also provides demat account facility. ICICI direct is one the largest share brokerage company having more than 20 lakh customers. ICICI Direct provides a wide range of services and investment options to their customers.
This account along with account opening charges and annual maintenance charges their user % brokerage on their transaction. The brokerage percentage may range from 0.05% to 1.5% depending on the transaction.
5. Sharekhan Demat Account
Sharekhan.com is also a popular financial service provider in India. It has in all over 1800+ offices which include branches & franchises spread over 550 cities in India. It charges brokerage fees for their trading and transaction.
The fees and rates may vary from the transaction to transaction and may range from 0.05% to 2.5 %.
Best Demat Account in India: A Final Take
Every demat account has its pros and cons. Where a few service provider provides analytical reports and advisory services along with the account holding facility a few provides direct market access. Each demat account comes with its own unique features. However, some of the features might be common. But, the overall cost and good service quality does matter.
On one hand, Zerodha provides a nominal fee account with great trading tools and services. On the other hand, ICICI direct lets, you transact through it which is costly but provides many related facilities. Thus, depending on ones’ requirements, one can choose the more suitable service provider.
Disclaimer: There is a high degree of risk involved in stock trading. The details given on this website are for informational purpose only and cannot be constituted as professional advice in any regard. Please follow due diligence while investing your money.
Now, that you know about some of the best demat accounts in India, what are your views on the same? Do you have a demat account with any of these stock brokers in India? Which one do you prefer: a full service broker or a discount broker offering a flat fees or lowest brokerage charges in India? Feel free to discuss.
5
Thanks for sharing the post. The way you narrated the post is good. We have many stockbrokers in India but to my point of view, Zerodha and Upstox are better because Zerodha is technically strong and Upstox is providing better margins when compared to others.
You can add Finvasia also to this list. They have zero brokerage across all segments plus account opening charges are also zero. Thanks!
There are many demat account companies which are providing good services. Thanks for sharing the comprehensive list of the brokerage firms.