Best Demat Account for Beginners in India

In India, there are a large number of Demat account providers who offer competitive services to potential customers who are interested in dealing with shares. Opting for a Demat account that is offered and managed by a well-established brokerage firm is always a wise choice.

Let’s know more about the best Demat account providers in India. 

What Is a Demat Account and Why is it Required?

Opening a Demat account is the first step you will need to take if you wish to invest in the stock market. Demat is short for dematerialization. A Demat account helps to store the shares that you own in an electronic format. Unlike the earlier paper version of trading, a Demat account reduces the risk of theft and fraud as the entire process is completely online.

It is mandatory to own a Demat account as it is not possible to hold shares without it. Apart from this, you will require a Demat account if you have plans to invest in debt securities like debentures and bonds.

Central depositories fulfill the responsibility of setting up as well as maintaining every Demat account. National Security Depository Limited and Central Depository Service Limited are the two central depositories in India that manage the depository participants who in turn help you to open a Demat account.

List of Top 10 Demat Accounts for Beginners in India

In India, there are multiple brokerage firms that provide competitive services for potential investors who wish to deal in shares. It might get really confusing to figure out the best Demat account for you, especially when you are about to open your first Demat account. 

You can either open a Demat account through a bank or a brokerage firm. 

Here are the top stock brokerage firms in India that offer Demat account services: 

  1. Zerodha

Based in Bangalore, Zerodha is India’s one of largest and most popular Demat account brokers. It is the first discount broker in India and one of the best in the country with a huge client base of around 50 lakh customers. 

You can learn more about trading by using their open platform Zerodha Varsity and also get market data and advanced charts which might help you make wise investment decisions. 

Zerodha deals in various segments like equity, commodity, currency, IPO, and direct mutual funds. It is possible to directly invest in mutual funds through the Zerodha app and can utilize their state-of the art trading platform which is known as Zerodha Kite.

Hassle-free online account opening process through Aadhaar card within minutesYou can open a 3-in-1 Demat account only if you have a have IDFC First bank savings account
All types of account related fees are quite reasonableCall and trade orders are chargeable at ₹20
You get the opportunity to create your own trading platform
You will be able to utilise market research tools which are of high quality


  • Online account opening charges for both Demat and trading account is ₹200
  • Offline account opening charges are ₹400 for both trading and Demat account
  • Demat annual maintenance charge is ₹300 (excluding GST charges every quarter). 
  1. Upstox

Upstox is another Mumbai-based leading discount broker. With their Demat account, you will be able to trade in stocks, digital gold, mutual funds, futures etc. Their software helps you make better investment decisions by offering chart-based information. Your Demat account with Upstox will be entirely paperless.

There are no commission charged on investmentCall and trade orders are chargeable
Upstox has a superior mobile trading platform known as Upstox ProYou will not be able to open a 3-in-1 Demat account if you do not have an IndusInd bank savings account
You can trade from anywhere around the world
No Demat opening charges and low annual maintenance charge


  • No commission for investing in mutual funds, stocks and digital gold 
  • Maximum of ₹20 per trade for non-delivery trades related to intraday and futures and options as well as commodity and currencies orders. 
  1. ICICI Direct

ICICI direct is one of the largest retail stock broking firms in the country. It offers services such as equity trading, commodity trading, and currency trading at NSE, BSE and MCX. This company also offers mutual funds and IPO services. You will receive material for learning the concepts and even get opportunities to invest in global market fractional shares.

You can opt for a 3-in-1 Demat account which will help in easier flow of fundsIt levies the highest brokerage charges among all its peer firms
You do not require any minimum balance for your Demat account to be operationalIf you want to invest in penny stocks, this firm might not be suitable for you
It is a one-stop shop for all types of investments as well as insurance plans
You can get market insights, research reports and learning material before taking investment decisions


  • Annual maintenance charge for the first year is nil and ₹700 from the second year onwards. If the Demat Account is under BSDA, there are no maintenance charges for a holding value of up to ₹50,000. 
  • Call and trade charges are ₹20 which is higher than other firms
  1. Sharekhan

Sharekhan offers an all-in-one trading platform that offers audio and video clips for learning, portfolio management, market research etc. Both beginners and experienced traders can benefit from the services that this Demat account has to offer. You can also opt for professional advice to manage as well as rebalance your portfolio. This platform lets you trade in bonds, stocks, mutual funds, FX, ETFs, Futures and Options.

Trading and Demat account opening charges are nilThis platform does not offer 3 in 1 Demat account services
Its trading terminal, known as TradeTiger, is one of the best in the countryFor classic account holders, there are no commodity trading services
You do not have to pay any charges for call and trade
There are active prepaid schemes available to reduce brokerage slabs


  • Demat account maintenance charge for the first year is nil and from the second year onwards, it is ₹400
  • For each delivery the fee is 30 paisa per 100 paisa and for intraday brokerage fee is 3 paisa for every 100 paisa
  1. Kotak Securities

This company is a subsidiary of Kotak Mahindra bank and has multiple branches, franchises and satellite offices all over India. It offers a 3-in-1 account which means your Demat, trading and savings account get integrated. Other than that, it also offers trading advice and market analysis tools. This is one of the best options if you are planning to invest in small amounts.

It is really beneficial for small investorsBrokerage charges are higher in comparison to other full-service brokers
The company offers services like investments in equity, mutual funds, IPO, ETF, tax-free bonds and currency derivatives, all under one roofYou will not receive any support for commodity trading
You will get chat facilities and a support team as well


  • Demat account maintenance charge is ₹50 per month
  • No charges applicable for intraday trading
  1. HDFC Securities

It is another leading stock broker that offers Demat account for beginners. HDFC securities is a subsidiary of HDFC bank. You can trade in Indian as well as international equities. With HDFC securities, you get customer support 24×7. Apart from this, you also receive tools for market research. This company has a good reputation as its parent bank is one of the biggest private sector banks in India. 

You will get the portfolio-tracking feature. Trading platform of this company, which is known as HDFC Blink, is not free and you will need to pay monthly subscription charges. 
NRIs can open a Demat Account with this brokerage firm. You will not receive any support for trading in commodity segments
You can attend the educational seminars that they conduct for their clients frequently. SMS-based research tips are also chargeable
You get the 3-in-1 Demat account facility which is useful for quick transfer of funds


  • Demat account maintenance charge is ₹750 every year
  • Charge for opening a 3-in-1 account is ₹999
  1. Angel Broking

With its headquarters in Mumbai, Angel broking is one the most reputed brokerage firms in India. Other than equity and commodity trading services, they also provide mutual funds, life insurance and portfolio management services. Earlier, they used to follow full-service \ but now they follow the discount brokerage model. The entire account opening process is online and your portfolio will be managed by experts.

They provide services on most of the prominent stock exchanges like Bombay Stock Exchange and National Stock Exchange.

Their newest investment approach works on artificial intelligenceCall and trade orders are chargeable at ₹20
The app and website are available in English as well as Hindi languageYou will not get any fixed per month brokerage plans
You will receive comprehensive research reports and tips from financial analystsSome recommendations are based on AI, which is purely dependent on algorithms


  • There are no account opening charges. You will also not have to bear any AMC charges for the first year. 
  • After the first year, the monthly account management charge is ₹20
  1. Motilal Oswal

This is one of the most famous brokerage firms among retail investors. They not only offer rocking services but also services like portfolio management, asset management, institutional broking, commodity broking, investment in IPOs, loans, bonds, etc. It is one of the oldest Demat account providers. You will receive in-depth research analysis tools as well as investment advice.

It is a trustworthy company with more than 30 years of experienceThey do not offer 3-in-1 Demat account services
There are around 1700 accessible branches across the countryBrokerage charges are higher when compared to discount brokerage services
Motilal Oswal allows fund transfers via more than 50 banks


  • Brokerage charges for options and currencies are ₹20 per lot
  • Demat account annual maintenance charge is ₹299
  1. India Infoline Limited

The firm is known for trading at a low cost. Their portfolio analysis software and price alerts via their mobile app might be extremely useful for you. They also offer market analysis tools for doing in-depth market research so that you can make well-informed financial decisions. You get to trade in a wide range of assets like stocks, IPO, currencies, and much more.

You get alerts whenever there is a price changeEach call and trade order costs ₹50 which is really high
They have a large number of branches across all major towns and cities in IndiaThey do not offer the option to invest in mutual funds directly
You can transfer funds with more than 60 banksThere is no facility for a 3-in-1 Demat account


  • Demat maintenance service is absolutely free for the first year and is ₹450 from the next year onwards
  • You need to pay ₹20 for every executed order of equity options
  1. SBICAP Securities

It is an online mobile-based trading platform that offers educational resources along with market analysis tools, thus assisting you in making informed investment decisions. They are one of the best brokerage firms in the market who are known for their stock trading advice. They are a subsidiary of the State Bank of India (SBI). 

They have dedicated relationship managers who offer customised solutionsDemat account maintenance charge is ₹350
You can opt for their 3-in-1 account for seamless fund transfersYou need to pay charges for call and trade orders
Option brokerage fee is cheaper when compared to other brokerage firms3-in-1 account opening charge can go as high as ₹850


  • Demat account opening is free of cost

Final Word

A Demat account helps you save time by allowing seamless transactions and storage of securities. If you are a beginner to trading, try to choose a Demat account that offers additional features like expert advice and learning materials. You should also look for a brokerage firm that charges minimal fees for every executed order.

Frequently Asked Questions

Is it possible to own more than 1 Demat account in India?

Yes, it is completely legal to own more than one Demat account in India as long as you open them with different brokerage firms. However, it is mandatory to link all the Demat accounts to your PAN card.

Is it possible to transfer shares from one Demat account to another?

Yes, it is absolutely possible to transfer shares from one Demat account to another. However, it would be easier if both Demat accounts have been opened under the same central depository.

Can I close a Demat account?

Yes, it is absolutely possible to transfer shares from one Demat account to another. However, it would be easier if both Demat accounts have been opened under the same central depository.

What documents are necessary for opening a Demat account?

For opening a Demat account you need to provide identity proof, address proof, income proof, bank statement and passport-size photographs.

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