10 Best Demat Account Broker to open Demat account in India

Written by: Kaushik Jethva

Last Updated: May 25, 2023

a man holding his phone and analyzing stock market
A man holding his phone and analyzing stock market

In India, demat accounts are essential for investors who want to trade in stocks, direct mutual funds, or any other securities listed on the stock exchanges. A demat account is a digital account where investors can hold their investments in electronic form. Opening a demat account in India is easy and can be done with any registered stock brokers or depository participant. In this guide, we will discuss the 10 best demat accounts brokers in India based on their features, benefits, brokerage charges, and account opening process.

1 List of the best demat accounts and trading account brokers

Upstox Demat Account

Upstox is a discount broker and provides a free demat account for its clients. They charge zero brokerage on equity delivery trades and a flat brokerage fee of Rs. 20 per executed order for all other trades. Upstox offers a trading platform that is easy to use and has features like mutual fund investments, market data, market research data, and market analysis tools. They also offer margin trading facility and trade commodity futures.

Pros
  • Engaging in investments without incurring any fees or commissions.
  • It is possible to commence your investment journey with as little as one rupee.
  • It is possible to conduct trades from any location across the globe.
Cons
  • Several customers have conveyed their discontent regarding market downturns resulting from significant fluctuations in the market.

Zerodha Demat Account

Zerodha is one of the most popular discount brokers in India. They have 0 demat account opening charges with zero brokerage on equity delivery trades. They charge a flat brokerage fee of Rs. 20 per executed order for all other trades. Zerodha also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer margin trading facility and trade commodity futures.

Pros
  • Top-notch instruments for conducting market research.
  • You can choose to develop your personalized trading platform.
  • An application designed for educational purpose.
Cons
  • The app only includes the Indian market trends.
  • There is no safeguard for investors.

IIFL Demat Account

IIFL is a full-service broker that provides a demat account with no account opening charges. They charge a brokerage fee of 0.05% for equity delivery trades and a flat brokerage fee of Rs. 20 per executed order for all other trades. IIFL also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • There are no fees for initiating a Demat account with IIFL.
  • Notifications regarding fluctuations in prices.
  • Instruments for conducting research and analysis.
Cons
  • It has been reported that the brokerage charges are comparatively higher than other instances.

HDFC Securities Demat Account

HDFC Securities is a full-service broker that offers a demat account with a simple account opening process. They charge a brokerage fee of 0.50% for equity delivery trades and a flat brokerage fee of Rs. 25 per executed order for all other trades. HDFC Securities also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • Support services are accessible round the clock.
  • Tools for managing your investment portfolio.
Cons
  • Compared to other options, the Demat account maintenance charges are high.
  • Commodity trading is available.

ICICI Direct Demat Account

ICICI Direct is a full-service broker that provides a demat account with a simple account opening process. They charge a brokerage fee of 0.55% for equity delivery trades and a flat brokerage fee of Rs. 35 per executed order for all other trades. ICICI Direct also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • Fractional shares of stocks.
  • There is no mandate for maintaining a minimum balance.
  • Invest in stocks of international companies.
Cons
  • Small investors encounter high brokerage charges.

SBICAP Securities Demat Account

SBICAP Securities is a full-service broker that provides a demat account with a simple account opening process. They charge a brokerage fee of 0.50% for equity delivery trades and a flat brokerage fee of Rs. 25 per executed order for all other trades. SBICAP Securities also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • Learning resources for acquiring knowledge.
  • Guidance on conducting trades.
  • Dedicated relationship manager with a specific area of expertise.
Cons
  • A fee of Rs. 850 is required to open an account.

Axis Direct Demat Account

Axis Direct is a full-service broker that provides a demat account with a simple account opening process. They charge a brokerage fee of 0.50% for equity delivery trades and a flat brokerage fee of Rs. 20 per executed order for all other trades. Axis Direct also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • No account maintenance fees will be charged for the first year.
  • Professionals carried out a market study and then provided it for no cost.
  • Learning materials for novices to start trading.
Cons
  • Individuals who do not hold an account with Axis Bank are subject to excessively high charges for managing their accounts.

Angel Broking Demat Account

Angel Broking is a full-service broker that provides a demat account with a simple account opening process. They charge a brokerage fee of 0.40% for equity delivery trades and a flat brokerage fee of Rs. 20 per executed order for all other trades. Angel Broking also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • The brokerage fee on all segments is zero.
  • You can trade equity delivery free of charge for the rest of your life.
  • Option for investing in fractions.
Cons
  • Several customers have complained about the customer service.

Kotak Securities Demat Account

Kotak Securities is a full-service broker that provides a demat account with a simple account opening process. They charge a brokerage fee of 0.49% for equity delivery trades and a flat brokerage fee of Rs. 21 per executed order for all other trades. Kotak Securities also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • Individuals with limited financial resources stand to gain from this.
  • Investing on a worldwide level.
Cons
  • Higher rates of charges for brokerage.

5Paisa Demat Account

5Paisa is a discount broker that provides a demat account with no account opening charges. They charge a brokerage fee of 0.50% for equity delivery trades and a flat brokerage fee of Rs. 20 per executed order for all other trades. 5Paisa also offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools. They also offer portfolio management services and investment advice.

Pros
  • Portfolio rebalancing performed by experts.
  • Keeps you informed about changes in the prices of your preferred stocks.
  • An initial deposit of any amount is not required.
Cons
  • There is a long process involved in opening an account.

2 Factors to Consider While Choosing a Demat Account

Brokerage Charges

The brokerage charges are the fees charged by the broker for executing your trades. It is important to choose a broker that offers competitive brokerage charges to ensure that you save on trading costs.

Account Opening Charges:

The trading account opening charges are the fees charged by the broker to open demat account. Some brokers offer free demat account opening, while others charge a fee.

Annual Maintenance Charges

The annual maintenance charges are the fees charged by the broker for maintaining your demat account. It is important to choose a broker that offers competitive annual maintenance charges.

Trading Platform

The trading platform is the software provided by the broker for executing your trades. It is important to choose a broker that offers a trading platform that is easy to use and has features like market data, market research data, and market analysis tools.

Margin Trading Facility

The margin trading facility is a facility offered by the broker to trade with funds borrowed from the broker. It is important to choose a broker that offers margin trading facility if you plan to trade on margin.

Joint Demat Account

Just like a savings account or joint bank account, a joint demat account is an account that is shared by two or more people. It is important to choose a broker that offers joint trading and demat account facility if you plan to open a joint demat account.

3 Wrapping Up

A demat account is an essential tool for investors who want to trade in securities listed on the stock exchanges. In this guide, we have discussed the best demat account providers in India based on their features, benefits, brokerage charges, and demat trading account opening process. It is important to consider these factors while choosing a demat account broker to ensure that you make an informed decision. It is also important to note that investing in the stock market involves risks and investors should conduct their own research and analysis before making any investment decisions.

If you are confused, check out our blog on a detailed comparison of which is better Upstox or Groww.

FAQ's about Demat Account

Can we have 2 demat accounts?

Yes, it is possible to have two Demat accounts. There is no restriction on the number of Demat accounts that an individual can hold, as per the guidelines issued by the Securities and Exchange Board of India (SEBI).

Having multiple Demat accounts can be beneficial in some situations, such as:

  • Diversification: You can use multiple Demat accounts to spread your investments across different brokers or investment portfolios. This can help you diversify your investment risks and optimize your returns.
  • Convenience: You can use one Demat account for long-term investments and another for short-term trades, or you can have separate Demat accounts for different family members.

However, it’s important to note that maintaining multiple Demat accounts can also come with certain challenges, such as managing multiple login credentials, keeping track of multiple investment portfolios, and incurring additional fees such as account opening charges, annual maintenance charges, and transaction charges.

Opening a Demat account is not inherently risky, but it involves certain risks that you should be aware of before opening an account. Some of the potential risks associated with Demat accounts include:

  1. Market Risk: The value of your securities can fluctuate based on market conditions, and there is a risk of loss if the value of your investments declines.
  2. Operational Risk: There is a risk of operational errors such as incorrect transactions, failed trades, or delayed settlements, which can impact the value of your investments.
  3. Fraud Risk: There is a risk of fraud, such as unauthorized access to your account, unauthorized transactions, or fraudulent sale of your securities.
  4. Broker Risk: The risk of the broker going bankrupt, insolvency, or engaging in unethical practices, which can result in the loss of your investments.

To mitigate these risks, it’s important to choose a reputable broker who is registered with a recognized regulatory authority, such as the Securities and Exchange Board of India (SEBI). You should also review the broker’s terms and conditions, account opening forms, and fee structure before opening an account. Additionally, you should take measures to secure your account, such as choosing a strong password, enabling two-factor authentication, and monitoring your account activity regularly.

A Demat account is not a tax-free account. Although you do not pay tax on the securities held in your Demat account, you may be liable to pay taxes on any gains made from the sale of those securities.

The tax liability on gains from securities held in a Demat account is determined by the holding period of the securities. If the securities are held for less than 12 months, they are considered short-term capital assets, and any gains from the sale of these securities are subject to short-term capital gains tax. The current tax rate for short-term capital gains is 15%.

If the securities are held for more than 12 months, they are considered long-term capital assets, and any gains from the sale of these securities are subject to long-term capital gains tax. The current tax rate for long-term capital gains is 10% for gains exceeding INR 1 lakh.

In addition to capital gains tax, there are other taxes associated with Demat accounts, such as Securities Transaction Tax (STT), which is charged on the purchase and sale of securities, and Goods and Services Tax (GST), which is charged on brokerage fees and other charges related to your Demat account.

No, you cannot withdraw all the money from a Demat account because a Demat account is used to hold securities in electronic form, not cash. While you can sell the securities held in your Demat account and receive the sale proceeds, the money is not directly withdrawable from your Demat account.

When you sell securities held in your Demat account, the sale proceeds are credited to your linked trading account that you have registered with your Demat account. From there, you can withdraw the money as per your needs. It’s important to note that you may need to pay taxes on the sale proceeds, depending on the holding period and the gains made from the sale of the securities.

Additionally, there may be other fees and charges associated with withdrawing funds from your Demat account. These fees can vary based on the broker and the bank, and may include charges such as transaction fees, transfer fees, and withdrawal fees.

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About This Article

Kaushik Jethva
Written by: Kaushik Jethva author

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Updated: May 25, 2023
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