To avoid the trouble of paperwork while buying or selling shares, the best demat account in India is the answer. We’d compare the top Demat account providers in India so that you can find the one that’s right for you.
In this article, we will give a detailed idea to you all about the best demat accounts that are present in India, including their pros and cons. This would help you make a well-informed decision.
So, let’s plunge right in!
What is a demat account?
A demat account is an account that is used to hold shares and securities in an electronic form. It is very similar to a bank account where you can deposit and withdraw money. A demat account is essential if you want to trade in shares and securities.
The main advantage over traditional brokerage services is that the rates for currency transactions are usually better than those available in most retail outlets since banks get preferential access to global markets through their own trading desks.
Additionally, demat accounts also allow investors more flexibility as they can hold multiple currencies at the same time without having to move them around each time prices change.
The Best Demat Account in India
A lot has happened over the past decade in the trading arena in India. Everybody wants to ride this trading wave, but simply doing so without analyzing information or acquiring knowledge can lead to trouble. Same goes for choosing a suitable demat account, the one that will facilitate the seamless process of trading for you. With the overflow of options that emerged in the last couple of years, all guaranteeing effortless trading, low cost, and additional perks has made it essential to test their credibility.
So, let us quickly have a look at the table below with some of the providers of the best demat accounts for long term investment to ensure you don’t fall prey to any unwarranted losses.
- Zerodha: Top Rated Account Broker with Discounted Price
- Upstox: Reliable Platform for Long Term Investment
- 5Paisa: Best Demat Account with Several Trading Features
- Paytm Money: Trusted App for Low Brokerage Account
- Angel Broking: Online Demat Account for Beginners
- IIFL: Most Trusted Financial Service Broker
- Motilal Oswal: Best Financial Service Provider
- ShareKhan: Most Popular Full Service Platform
- Religare: Top Broking Company with a Loyal Client Base
- HDFC Securities: 3-in-1 Account for HDFC Bank Clients
- Axis Direct: Top Provider with Diverse Product Portfolio
- ICICI Direct: Largest Trading Firm for Domestic and Global Trading
- SBICAP Securities: Best Company for Trading and Investment
| Name Of The Brokerage Firm | Rating |
| Zerodha | 5/5 |
| Upstox | 5/5 |
| 5Paisa | 4.6/5 |
| Paytm Money | 4.5/5 |
| Angel Broking | 4.8/5 |
| Motilal Oswal | 4.6/5 |
| Sharekhan | 4.6/5 |
| HDFC Securities | 4/5 |
| Axis Direct | 4.5/5 |
| ICICI Direct | 4.5/5 |
| SBICAP Securities | 4/5 |
1. Zerodha
Zerodha happens to be the biggest stock brokerage service provider in India right now. This is a Bangalore based company that was the first to introduce the concept of brokerage.
Zerodha is also one of those platforms that levies no additional taxes or government fees, thus becoming the biggest discount broker. They also have the lowest brokerage fee of just 0.03 percent. In addition to this, they provide the best customer service compared to any other discount brokers. Lastly, their KITE trading platform has the most amazing UI, with advanced trading tools for an accurate technical analysis. All of this makes Zerodha the no. 1 demat account in India.
Benefits
- They charge zero brokerage for stock delivery
- Expect fixed Rs. 20 charges for intraday trades
- Their analysis and charts are one of the best in the trade
- Invest in mutual funds directly with their coin via the Zerodha app.
- Easy to understand plans
- No brokerage on delivery
- There is no minimum cap per transaction
- This is one platform that provides you with 5x during intraday MIS as well as for CO or Cover Orders
Charges Incurred
| Annual Maintenance Charges | First year zero, and then Rs. 300 a year |
| Account Opening Charges For Demat And Trading | Rs. 200 |
| Account Opening Charges For Commodity | Rs. 100 |
Brokerage Charges
| Equity Intraday | Rs. 20 or 0.03% per order, as in whichever is lower |
| Equity Delivery | Zero Brokerage |
| Equity Options | Rs. 20 flat per order (executed) |
| Equity Futures | Rs. 20 or 0.03% per order, like whichever is lower |
Cons
- The account opening charges may be a turn-off for some
- You need to have a specific bank account to get more benefits
- No monthly unlimited plans
Special Features
As of now for the first year, they are not charging any AMC and you can even save Rs. 200.
2. Upstox
Upstox is definitely the best demat account for long term investment. Cheap brokerage charges and advanced technology platforms make Upstox one of the best discount brokers in India.
When compared to other full brokers, you can save a good amount in brokerages; upto 90 percent. However, its plans are quite similar to Zerodha. Furthermore, Upstox focuses a lot on technical aspects and thus provides the fastest online trading platform in India with some real good features like Ami-broker (a software that helps you strategize in trading and put those strategies to use). Lastly, through their platform, you can also invest in Mutual funds, SIPs, and even gold.
Benefits
- For a limited period, they are offering a free account opening with zero AMC charges
- They have an Upstox Pro platform with other premium features.
- You can place stop loss orders.
- Keep margin shares
- You get prepaid brokerage of Rs. 1000 that remains valid for a month’s time as you open an account
- You can invest as low as Rs. 1 and start trading
- Their plans are low cost
- You can open an account really fast with Upstox
- Live insights into trading markets
- Backed by Mr. Ratan Tata
Charges Incurred
| Annual Maintenance Charges | No charges |
| Account Opening Charges For Demat And Trading | Free |
| Brokerage Credit Readily Available For Free | Rs. 1000 |
Brokerage Charges
| Equity Intraday | Less than Rs. 20 per order or 0.05% |
| Equity Delivery | 2.5% or Rs. 20 whichever is lower |
| Equity Options | Rs. 20 per order (executed) |
| Equity Futures | Less than Rs. 20 per order or 0.05% |
Cons
- You can get more benefits only if you have an account in a particular bank
- A charge of Rs. 20 for delivery trade may not go down with everyone
Overall, they are a proven traditional brokerage firm with good trading platforms. They have a fixed low brokerage irrespective of the trading volumes.
3. 5Paisa
5Paisa is the cheapest demat account, which charges low brokerage of Rs. 10 per trade. They are also proven to be the safest demat account providers in India. They have unique propositions under their Ultra Trader pack (Rs.999 per month) and the Power Investor pack (Rs.499 per month) including low brokerage, free delivery, etc. If you do not choose a plan, you have to pay the brokerage of 20 per trade.
The portfolio analysis tools and market research tools are the highlights of 5Paisa.
The 5Paisa mobile trading app for demat account can be used for trading. No other mobile app in India can beat its app in terms of fast speed, user usability, and experience.
Benefits
- If you submit all the required documents, your 5Paisa account will be opened on the same day
- They levy the lowest brokerage of Rs. 10 per trade.
- Account opening charges are nil
- You even get a portfolio analysis tool.
- Learn trading through their simplified courses.
- You can invest in mutual funds, commodities, gold, and even US stocks.
- No commission in mutual fund investments.
- Allows you to open a joint demat account with 3 members.
- Offers market research tools.
Charges Incurred
| Annual Maintenance Charges For Demat | Rs. 400 |
| Account Opening Charges For Trading | Rs. 650 |
| Online Demat Account Opening Charges | Zero |
Brokerage Charges
| Equity Intraday | Rs. 10 per order (executed) |
| Equity Delivery | Rs. 10 per order (executed) |
| Equity Options | Rs. 10 per order (executed) |
| Equity Futures | Rs. 10 per order (executed) |
Cons
- You are likely to face server issues during peak trading hours
What makes them unique is their Ultra Trader pack that offers you a cashback of Rs. 1000 brokerage each month. Isn’t that great?
4. Paytm Money
Paytm Money is a broking and investment platform. They are a depository participant member of CDSL and an associate of BSE and NSE. Users trust Paytm money for investments in stocks, digital gold, NPS, mutual fund investments, ETFs, and IPOs. This makes them the best demat account for ipo.
Their free Equity Delivery trading offer is very competitive. Paytm Money is a registered stockbroker with SEBI and also an Investment Advisor. They even have an advanced app that makes you trade seamlessly. In addition to this, you get Demat AMC at no cost compared to others who charge around Rs. 200 for the same. They have both a mobile trading and a web trading platform, so access your investments anywhere.
Benefits
- Good mobile app
- Instant account opening digitally
- You can apply for IPOs online
- Earn 1% more on returns of Mutual Funds
- Direct mutual funds are commission free
- Simple pricing model
Charges Incurred
| Annual Maintenance Charges For Demat | Zero |
| Annual Platform Maintenance | Rs. 30 a month |
| Online Demat Account Opening Charges | Rs. 200 |
Brokerage Charges
| Equity Intraday | Rs. 10 per order or 0.05% whichever is lower (executed) |
| Equity Delivery | Zero, but a minimum of Rs. 0.01 may levy |
| Equity Options | Rs. 10 per order (executed) |
| Equity Futures | Rs. 10 per order (executed) |
Cons
- Currency and commodity trading are not available as of now
- No NRI trading account
- You will have to pay Rs. 30 per month for the trading platform
Nonetheless, we must admit that you get real-time information about trading on this platform. Using advanced charts and tools can be beneficial for you.
5. Angel Broking
Angel Broking is the oldest full-service brokerage firm in India. They have a long-standing relationship with other networks. This means that they have a vast network that helps you trade in stocks, commodities, mutual funds, currencies, IPOs, futures, and options with them. They also offer portfolio management and life insurance services.
The highlight of angel broking is Angel ARQ which is an investment advisory tool that helps users choose the right investment opportunity for them. They also have a centralized structure of working and that enables them to solve client queries pretty quickly.
Lastly, their Angel One trade, web trading platform and Angel SpeedPro, their well-renowned trading terminal give it an edge above its competitors.
Benefits
- Provide free research and recommendations.
- Free equity delivery trade for life.
- Partnered with a leading US stock broker, Vested Finance.
- A large network with a huge client base.
- You can open the fastest accounts with them.
- Assistance is available in Hindi and English both.
- Offers research by a brilliant team of analysts; hence, your portfolio is managed by experts
Charges Incurred
| Annual Maintenance Charges | Zero for the first year, then it accrues Rs. 20 a month Zero |
| Account Opening Charges For Trading | Zero |
| Account Opening Charges For Demat | Zero |
Brokerage Charges
| Equity Intraday | Rs. 20 or 0.25% per order, like whichever is lower |
| Equity Delivery | Zero brokerage for a lifetime |
| Equity Options | Rs. 20 or 0.25% per order, as in, whichever is lower |
| Equity Futures | Rs. 20 or 0.25% per order, as in, whichever is lower |
Cons
- Owing to an extra-large database, they are unable to provide 24/7 customer service
- Their discounts do not match the current providers
You get a margin to make up to 5x of the amount that you deposit. The best part is you can start trading as your KYC gets through!
Current offers: To open your account with no charges and AMC for a year.
6. IIFL
IIFL is a renowned company for a reason. Their wide network of 4500+ branches makes it easily accessible and they also have another company, 5 paisa as an extension to this one. This company has maintained its relevance since 1995 and is one of the most reliable sources if you wish to open a demat account. Their international presence is also commendable, which helped them receive the “Best Broker with Global Presence” award.
They offer several trading and investment products to their clients at an affordable brokerage rate. The highlight of this brokerage company is that it guides its clients to make wise and informed decisions.
Benefits
- They offer a variety of brokerage plans.
- IIFL is famous for their investment products.
- They provide an excellent trading platform to clients.
- Research and advisory tips to analyze portfolios.
- Relationship managers are available for guidance.
- Users can open a free demat and trading account.
Charges Incurred
| Annual Maintenance Charges | Zero |
| Account Opening Charges for Demat | Zero |
| Account Opening Charges for Trading | Zero |
Brokerage Charges
| Segment | Charges |
| Delivery Brokerage | Zero for all trades |
| Equity Intraday, Futures and Options, Currency and Commodity | Rs. 20 per trade or 0.05%, whichever is lower |
| Equity Options | Rs. 20 per order |
Cons
- No 3-in-1 demat account feature.
- Intraday charts aren’t available in the Investor Terminal.
- It lacks efficiency when compared to other brokers.
7. Motilal Oswal
If you trust only years of experience then Motilal Oswal is the perfect trading platform for you. With over 35 years of experience in the financial services industry, Motilal Oswal is one of the most trusted names in the business. They offer various trading and financial services like trading FDs, private wealth management, institutional broking, retail broking, and IPOs. This platform is mostly loved by retail investors.
They are present in 2200 locations and have a big customer base. They also spend around 10 percent of their revenue on building a research team to provide clients with accurate analysis!
Benefits
- Motilal Oswal’s web and app platform makes it easy to track your investments and make trades
- You get a personal advisor
- Wide variety of assets.
- Expect to get updated market reports
- There is no need of a minimum balance to start trading
- No AMC.
- Award-winning research team.
Charges Incurred
| Annual Maintenance Charges | Can go up to Rs. 899 or can opt for Rs. 2,500 for a lifetime |
| Account Opening Charges For Demat And Trading | Zero |
| Account Opening Charges For Commodity | Zero |
Brokerage Charges
| Equity Intraday | 0.04% |
| Equity Delivery | 0.04% |
| Equity Options | Rs. 50 flat per lot |
| Commodity Options | Rs. 200 flat per lot |
Cons
- Brokerage charges are a bit high as compared to others
- Not a 3-in-1 demat account
8. Sharekhan
Sharekhan also offers a wide range of research and analysis tools to help you make informed investment decisions. They offer free call and trade options, market forecasts and portfolio balancing through their competent team. Their account opening charges are nil and provide varied investment opportunities ranging from F&O, equities, etc.
Their web-trading platform called Trade Tiger is one of the finest in the market with great trading tools.
Benefits
- Sharekhan offers both online and offline workshops for investors
- Good portfolio management
- Learning from video and audio tutorials facilities
- There is no requirement for a minimum deposit
- You get notifications about the prices of your favorite stocks
- They also help with portfolio rebalancing
- You get 24/7 assistance
Charges Incurred
| Annual Maintenance Charges | Rs. 300 |
| Account Opening Charges For Demat And Trading | Rs. 200 |
| Account Opening Charges For Commodity | Rs. 100 |
Brokerage Charges
| Equity Intraday | 0.10% for 1st and 2nd leg |
| Equity Delivery | 0.50% |
| Equity Options | Rs. 100 per lot or may be 2.5% as in, whichever is higher |
| Equity Futures | 0.10% for 1st and then 0.02% for the second leg |
Cons
- High brokerage rates as compared to other brokers
- The charges on the 2nd leg may not be liked by all
They even conduct online classes for their customers of all levels. Be it a beginner or an advanced broker, they have means to assist all and sundry.
9. Religare Securities
This brokerage firm is leading the stock broker market with its variety of trade and investment services and a client base of more than 8 lakhs. Their branches are spread across 500 cities and each of them offers a personalized experience to its customers, both online and offline.
Religare Securities is a full service broker, which was established by Nitin Aggrawal & Manjushree Nitin Ghodke in 1984. This company has evolved and created a space for itself in India over the years.
Benefits
- They offer advanced tools and resources to educate customers.
- No minimum margin money balance required.
- Exclusive products in various segments.
- Global investing is possible through Religare.
Charges Incurred
| Annual Maintenance Charges | Free for first year, then Rs. 400 second year onwards |
| Account Opening Charges For Demat | Zero |
| Account Opening Charges For Trading | Zero |
Brokerage Charges
| Equity Intraday | 0.050% to 0.010% |
| Equity Delivery | 0.50% to 0.10% |
| Equity Options | Rs. 70 per lot |
| Equity Futures | 0.05% |
Cons
- Customer service isn’t available 24*7.
- Need to maintain a minimum account balance.
10. HDFC Securities
In your search for the best demat account in India HDFC securities can be your answer if you prefer brand-name and the security that comes with it.
While the costs of trading with HDFC securities is similar to its competitors, the highlight of creating a demat account with them is the availability of their 3-in-1 account (Demat, trading and savings account). This ensures seamless trading and transfer of funds.
Thus, you get all the benefits of an HDFC account, including analysis, access to research, and customer support.
Benefits
- You can invest globally.
- 24/7 customer care.
- Place orders over call.
- Good market research tools.
- You get a 3-in-1 demat account that translates into faster transfers
- Educational resources
Charges Incurred
| Annual Maintenance Charges For Demat Account | Rs. 750 a year |
| Account Opening Charges For Trading | Rs. 999 |
| Account Opening Charges For Demat Account | Zero |
Brokerage Charges
| Equity Intraday | 0.05% or a minimum of Rs. 25 for buying as well as selling |
| Equity Delivery | 0.50% or may be a minimum of Rs. 25 |
| Equity Options | 1% or a payment sum of Rs 100, as in whichever is higher and is valid for buying as well as selling |
| Equity Futures | 0.025% or may be a minimum of Rs. 25 |
Cons
- There is no commodity trading as of now
- You need to have an HDFC savings accounts first
Yes, their trading platform BLINK is not free but they have one of the best services in the brokerage industry. Their web-trading platform HDFC pro terminal (Rs. 1999) is also not free but has some good analytical reports.
11. Axis Direct
Axis Direct is a great and trusted option when trying to invest in a demat account. The company has a diversified product portfolio that includes private equity, derivatives, online trading, insurance, equities, and mutual funds.
Like HDFC securities they too offer a 3-in-1 account facility to provide smooth transfers. In addition to this, they provide classes, webinars, blogs to beginners to aid them in learning about making the right investments.
Benefits
- Market research is done by professionals which is truly valuable
- Beginners also get a lot of materials for extra help and this makes their demat account for beginners friendly
- Their app has 3-in-1 account which is offered by Axis Direct
Charges Incurred
| Annual Maintenance Charges For Demat | For the first year, there are no charges, thereafter, you will have to pay Rs. 750 per year |
| Account Opening Charges For Demat | Rs. 900 |
| Annual Maintenance Charges For Trading | Zero |
Brokerage Charges
| Equity Intraday | 0.03% or 0.03% according to the plan you have enrolled for |
| Equity Delivery | 0.25% or 0.50% according to the plan you have enrolled for |
| Equity Options | Rs. 20 per lot in both plans |
| Equity Futures | 0.03% or 0.05% according to the plan you have enrolled for |
Cons
- If you do not have an Axis Bank savings account then be ready to pay hefty extra charges
- Rs. 20 for executed orders as brokerage fees
Non-Axis Bank customers have to pay Rs. 2500 a year for account maintenance. Furthermore, you get a lot of investment opportunities with this bank.
12. ICICI Direct
For many people, managing their finances and investing can be a daunting task. ICICI Direct offers a demat account that can help make the process a little bit easier. But first you will need to have a bank account with ICICI Bank because they offer a 3-in-1 (trading, demat, and savings account.) And if you trade in low volumes then this is just perfect for you.
They also have a lot of trade plans tailored according to one’s needs. Lastly, their biggest highlight is their option of letting users trade in fractional shares globally, this is what makes it on our demat account company list of top 10 demat accounts.
Benefits
- You get to invest in global shares
- There are a lot of learning materials at your disposal
- A 3-in-1 account as you need to have an ICICI bank account
- Market research and analysis tools are available
- There is no minimum balance required
Charges Incurred
| Annual Maintenance Charges | For the first year there are no charges, thereafter, you will have to pay Rs. 700 per year |
| Account Opening Charges For Demat And Trading | Zero |
| Account Opening Charges For Demat | Varies from 0 to Rs.975 as per the schemes and plans change |
Brokerage Charges
| Equity Intraday | Rs. 20 per order and unlimited for every order |
| Equity Delivery | Zero Brokerage |
| Equity Options | Rs. 20 per order |
| Equity Futures | Zero |
Cons
- Small investors may find the charges to be quite high
13. SBI CAP Securities
Like some other banks SBICAP Securities, too, offers a 3-in-1 account that links your savings account, trading account, and demat account. This account can be used to trade in mutual funds, equity, debt, derivatives, and more.
The best part about SBICAP securities are their learning tools and trading tips along with their relationship manager that make them worthy of coming on this list. And making it the best depository participant in India.
Benefits
- You get market analysis tools
- Trading tips are prompted
- A dedicated relationship manager is another advantage
- You can trade in equities, currencies, MFs, and more
Charges Incurred
| Annual Maintenance Charges For Demat Account | Rs.350 per year |
| Account Opening Charges For Trading | Zero |
| Account Opening Charges For Demat | Rs. 850 |
Brokerage Charges
| Equity Intraday | 0.05% |
| Equity Delivery | 0.50% |
| Equity Options | Rs. 100 flat per lot |
| Equity Futures | 0.05% |
Cons
- The opening charges are pretty high
The fact that it is part of the respected SBI group, makes SBICAP Securities a reliable brokerage firm. Their app has been termed as the best app in India making them a trustable online demat account provider.
What To Look For While Choosing A Demat Account?
There are many brokers who offer demat account services in India. So, it is essential to select the best demat account in India that suits your needs.
Here are some factors that you need to consider before choosing a demat account:
1. Reputation
It is important to choose a demat account provider who has a good reputation. You can check the reviews of different providers online to get an idea about their reputation.
2. Cost
Make sure to compare the costs of different providers. Some of the costs that you need to consider are annual maintenance charges, transaction charges, and most importantly, account opening charges. This account comparison in terms of cost is quite important.
3. Technology
The best service providers use cutting-edge technology to offer a seamless experience to their clients.
4. Services
A good provider will offer a wide range of services such as tools for research, online trading, advisory services, and mobile trading.
5. Customer support
Make sure to choose a provider who offers excellent customer support. This is essential in case you face any issue while trading.
Faqs
It saves you from unnecessary paperwork and dematerializes your securities and shares. This means it is way safer to go the digital way and avoid paper fraud.
Yes, you can as there are some providers that allow zero balance accounts as well.
All the names that we have mentioned so far are safe and reliable. Right from Zerodha, Upstox, HDFC Securities to Angel Broking, all are safe to use.
Zerodha has better technology which suggests that it has better trading tools, user-friendly interface, and good customer service. Upstox gives you leverage over Options, Futures, and Intraday owing to its priority brokerage plan.
You see the two have different benefits and packages. Both are good and you are free to make a call as per your main concerns.
Of course, you can as there is no point keeping a dormant account (lie if you are not using it) and paying for its maintenance. Just follow the network’s guidelines to close the account.
Conclusion
There are a number of different demat accounts to choose from in India that confuses the people as to which demat account is best. However, the best demat account in India will depend on your needs and what you’re looking for in a demat account and cannot have a one size fits all approach.
However, our winner in terms of overall benefits is Zerodha. Make sure you choose the one that satisfies you the best!