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.

Price

• 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). 

2. 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.

Price

• 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. 

3. 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.

Price

• 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

4. 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.

Price

• 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

5. 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.

Price

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

6. 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. 

Price

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

7. 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.

Price

• 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

8. 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.

Price

• Brokerage charges for options and currencies are ₹20 per lot
• Demat account annual maintenance charge is ₹299

9. 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.

Price

• 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

10. 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). 

Price

• 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