Investment in stock markets is the most lucrative option to earn high returns on your funds. A well-researched and thoughtful selection of shares and planned investment is the best strategy to earn profits in stock markets. In order to buy or sell shares in the stock market, the first step is to open a DEMAT account. However, it is advisable to choose the best DEMAT accounts in India to ensure the safety of your investments.
Earlier people used to have physical copies of the share certificates. They had to give away the certificate to the buyer when they sold the shares. This process was very tedious and led to many discrepancies. The Securities and Exchange Board of India (SEBI) has made it mandatory to have a DEMAT account in 1996.
What is a DEMAT Account?
DEMAT account is the acronym for the Dematerialized account. This account works to hold shares in dematerialized or electronic form. Every DEMAT account has a unique 16 digit number id. This ID is used to identify the investor. The first 8 digits represent the depository operator, while the remaining 8 digits are the identity of the investor.
Benefits of DEMAT Account
There are numerous benefits of having a DEMAT account.
- Since shares are held in electronic format, there is no risk of theft or damage to the share certificates.
- DEMAT accounts make it easy to trade in the stock markets. You can buy and sell shares of any quantity.
- The process of transfer of shares is fast and seamless. You can transfer the shares to anyone within 24 hours of sending the request.
- It is easy to make changes in contact number, address, etc. You can update your new details with the click of a mouse.
- Apart from share certificates, you can also store other investments in electronic format.
- The process of crediting bonus shares, dividends, etc. is quick and efficient through DEMAT accounts.
How To Open a DEMAT Account?
Opening a DEMAT account is not as difficult as it sounds. Most depository participants and brokerages offer DEMAT opening services at your doorstep.
Select a Depository Participant
Selecting a DP or a depository participant is the first step in opening a DEMAT account. What is a DP? A DP is an agent that is registered with the central depository operators to provide DEMAT services to the investors. NSDL and CDSL are the two central operators, who provide depository services. Banks, brokerage firms, and online platforms provide DP services to investors. You have to choose the right DP that provides the best DEMAT accounts in India and offers services that suit your preferences
Fill the Application Form
Once you finalize the DP, the next step is to visit their website and fill the online DEMAT account opening form.
Complete the KYC Procedures
You have to complete the KYC or Know Your Customer formalities. The DP will ask you to submit scanned copies of ID and address proofs. Most of them also collect the documents from your location, if you are unable to upload them. If you are opening the DEMAT account with your bank where you already have complied with KYC norms, this step can be avoided.
Verification
Once you have completed the online application and uploaded the KYC documents, the DP will conduct an in-person verification. This is to verify the authenticity of your details and eliminate the scope for any fraud. You may be asked to visit the DP’s office, or the DP’s representative may visit you at your location. Some DP’s also perform online verification.
Signing the Agreement
The final step in the process is to sign the agreement with the DP. The agreement contains all the fine details about the services offered by the DP, fees and other charges, the rights, and duties of the investor, etc. It is advisable to go through the agreement before signing it.
Get Your Unique ID
Once you sign the document, your DP will provide the unique DEMAT account number known as the BO Id (Beneficial Owner Identification Number). This number is just like your bank account number. You can use it to access your DEMAT account.
7 Best DEMAT Accounts In India
We have already discussed that the selection of DP is the crucial first step in opening a DEMAT account. Considering the fact that there is a multitude of DPs offering depository services it is hard to choose one. We have analyzed the different service providers and come with a list of the top 7 best DEMAT accounts in India.
1. Zerodha
Zerodha offers a 3 -in-1 DEMAT account in partnership with IDFC Bank. investors have to open an account in IDFC bank to open a 3 -in-1trading and DEMAT account with Zerodha. Apart from it, they also offer normal trading and DEMAT accounts, which can be linked to any bank account. Zerodha has become the top provider of the best DEMAT accounts in India.
Their trading platform KITE is top-notch and is available for web as well as mobile applications. They have become synonymous with outstanding customer service. Zerodha has become the most favored service provider of Indian investors overtaking the likes of ICICI direct and HDFC securities. Moreover, the trading and brokerage charges of Zerodha are highly competitive.
One of the most attractive features of Zerodha is that they do not charge any brokerage on investments and deliveries. Their brokerage for derivatives is Rs.20/ per executed order.
Zerodha is the best choice for small investors and systematic investors. You can save money on brokerage. Traders can also benefit as the brokerage charges on derivates are capped at Rs.20 per trade for futures, options, and intraday trading.
Account Opening Charges
Charges for online DEMAT account opening – Rs.200
Charges for offline DEMAT account opening Rs.400
Annual Maintenance Charges
Zerodha charges Rs.300 per year as AMC for individuals, HUFs and partnership firms
The AMC charges are Rs.1000 per year for corporates (LLPs, Private limited companies, and public limited companies)
Benefits Offered BY Zerodha
- Powerful and user-friendly trading platform
- Zero brokerage on investments and deliveries
- Flat rate of Rs.20 per trade on derivatives
- The highest margin for trading 4 to 15 times
- Outstanding customer support
- Up-to-date tools for technical analysis
2. Angel Broking
Angel broking is one of the most popular stock broking firms in India with over 20 lakh customers. It has a presence in over 900 locations all over India through its direct branches and franchises. One of the attractive features of Angel broking DEMAT accounts is zero account opening charges.
Angel broking is a one-stop-shop for different investment services. They offer services such as portfolio management, insurance, equities trading, derivatives trading, currency trading, and IPO investment.
Angel broking charges zero brokerage for investment and deliveries. Brokerage on intraday trading and derivatives is Rs.20 per trade for executed orders.
Account Opening Charges
DEMAT and trading account opening charges – zero
Annual Maintenance Charges
AMC for first-year – NIL
AMC from second year onwards Rs.450 per year
Benefits of Angel Broking
- Zero account opening charges
- Excellent customer service
- Modern trading platforms such as Angel Broking Trade and Angel Broking app
- 10 times the margin of the amount deposit
- Angel speed pro software that provides 30 days intraday and 20 years of historical data of share prices.
- Multiple services under a single roof
3. ICICI Direct
ICICI Direct offers one of the best DEMAT accounts in India. ICICI is the biggest private bank in India. ICICI Direct is the brokerage services wing of ICICI bank. ICICI Direct provides 3 -in-1 account, which means that the savings account, DEMAT account, and trading account are integrated. The 3-in-1 account facilitates the seamless transfer of funds.
The account opening charges and brokerage of ICICI Direct are comparatively high but it is one of the preferred brokerage firms for investors. It provides a wide array of trading and investment services such as equities, derivatives, IPO, ETF, Mutual Funds, currency trading, and bonds. It also provides ELocker and NPS investments.
Trade Racer Web and Trade Racer Desktop are the two trading platforms of ICICI Direct. You can perform all your trading and investment activities through these platforms. The Trade Racer Desktop platform also offers access to research calls and live streaming of quotes.
Account Opening Charges
DEMAT Account opening charges – Rs.100
Trading account opening charges – Rs. 975
Annual Maintenance charges
AMC for the First year – NIl
AMC for the second year and onwards – Rs.500 to Rs.700 per year
Benefits of ICICI Direct
- Exemplary customer support
- Transparent operations
- Reputed bank with decades of presence
- Seamless transfer of funds with the 3-in-1 account
4. Upstox
Upstox is an emerging discount brokerage firm, which has gained popularity among investors due to cheap brokerage and maintenance charges. Clients of the firm get access to the most powerful trading platform.
The brokerage house is a good bet both for investors and traders. Upstox charges zero brokerage fees for equities and deliveries. The brokerage on derivatives is fixed at Rs.20 per trade irrespective of the volume of trade.
Account Opening Charges
DEMAT and trading account opening charges Rs.49
Annual Maintenance Charges
Upstox charges AMC at the rate of Rs. 25 per month, which amounts to Rs.300 per year.
Benefits of Upstox
- Fast and powerful trading platform
- Low account opening charges
- Low AMC
- Zero brokerage on equities and deliveries
- The flat brokerage of Rs.20 per trade
5. HDFC securities
HDFC securities is a subsidiary of HDFC bank, one of the largest private sector banks in the country. Established in the year 2000, HDFC securities has over 2400 branches in 185 locations across India. HDFC is one of the preferred and best DEMAT accounts in India even though the charges are higher when compared to other broking firms. It offers a 3-in-1 account that enables quick and seamless transfer of funds.
Investors can receive helpful tips on stocks through SMS. HDFC PRO Terminal and HDFC Securities Mobile Trading are the trading platforms of HDFC securities. The trading platforms offer features such as real-time market quotes, sentiment analysis, market analysis, etc. Both the SMS tips and the trading platforms are chargeable.
Account Opening Charges
DEMAT Account opening charges Nil
Annual Maintenance Charges
AMC for first-year- NIL
AMC from second year onwards – Rs750
Benefits of HDFC Securities
- Integrated DEMAT and trading accounts.
- Quick fund transfer
- Efficient customer service
- Presence in most of the locations across the country
- Zero account opening charges
6. Kotak Securities
Kotak securities offer one of the best DEMAT accounts in India. It is registered with both the NSDL and CDSL. The firm offers a lot of value-added services along with a 3-in-1 account for investors and traders.
Kotak securities boast multiple trading platforms to cater to the client requirements. The web-based platform enables the users to trade online. The firm also has a platform called “Xtralite” for clients with slow internet speed. The stock trader app is a mobile application of Kotak securities that can be used for trading, and to get real-time stock prices, live market updates, analysis, etc.
Apart from the web-based and mobile apps, the brokerage house also offers trading software called KEATProX and FASTLANE. Moreover, it also provides the call and trade facility, where you can call their call centers and place orders.
The brokerage charges at Kotak securities are charged as a percentage of the total trade volume. The firm offers different plans to choose from.
Account Opening Charges
DEMAT Account Opening charges – NIL
Trading Account Opening charges – Rs.750
Account Maintenance Charges
Kotak securities charges AMC of Rs. 50 per months for residents and Rs.75 for NRIs.
Benefits of Kotak Securities
- Zero account opening charges
- Multiple investment options
- Daily SMS alerts for stock picks
- Periodical research reports
- Offline and online trading facilities
- Wide network of branches across the country
7. Sharekhan
With over 2600 branches all over India, Sharekhan ranks as the third-largest broking house in the country. The broking firm is registered with CDSL and NSDL. Sharekhan offers multiple trading and investment services to customers across different segments such as small investors, traders, corporates, etc.
TradeTiger is the installable software of Sharekhan. Apart from this, you can also trade from the website of the company. Sharekhan App is the mobile platform where you trade on the go. Sharekhan Mini is a website for users with a slow internet connection. You can also trade offline with the dial n Trade facility.
Sharekhan offers DEMAT and trading accounts at zero fees. The brokerage is charged as a percentage of the trade volume.
Account Opening Charges
DEMAT and Trading Account Opening charges – NIl
Annual Maintenance Charges
DEMAT account AMC is Rs.750 per year. In the first year, AMC is adjusted to the brokerage charges paid in the first 6 months.
Benefits of Sharekhan
- Zero account opening fees
- A huge network of branches
- Dependable customer care
- Online and offline trading facility
- Website for users with low internet speed
- Multiple brokerage plans to choose from
Apart from these 7 best DEMAT accounts in India, there are many popular stockbroking firms such as Religare, IIFL, Aditya Birla, and Motilal Oswal, as well as banks such as SBICAP securities, AXIS Direct, and YES securities.
Factors to Consider Before Choosing a DEMAT Service Provider
1. Customer Support
Customer support is one of the crucial factors to consider while choosing a DEMAT service provider. Choose a DP with fast and swift customer support to ensure that you make the most of the available investment opportunities.
2. User-Friendly Trading Platform
Study the trading platform of the shortlisted service providers before finalizing one. The trading platform should be up-to-date with a user-friendly interface. Most of the popular service providers provide trading platforms that are suitable for laptop, mobile, and web applications.
3. Account Opening Charges
Some service providers such as Angel Broking charge zero fees for opening trading and DEMAT accounts, while others charge a minimal fee. Compare the services offered by the different firms and the account opening charges to zero in one of the best DEMAT service providers.
4. Annual Maintenance Charges
The DPs’ charge annual maintenance fees from the investors. The AMC charges range between Rs.300 to Rs.1500. Enquire about the annual maintenance charges and other fees before you finalize a DEMAT account provider.
5. Transparency in Operations
The operations of the DP must be transparent as you have to entrust him with your valuable investments. Most of the service providers send periodical statements about your trading volumes and holding stocks. These statements will help to boost your confidence in the service provider.
Choosing the right DP is the first step to be successful in investing. Now that you have a list of the 7 best DEMAT accounts in India, go ahead and open a DEMAT account with your preferred institution. Choose the right service provider based on your trading volume, investment style, and budget.
Before we conclude, lets have a quick look at the best DEMAT Accounts in India. Here are our best picks for DEMAT Accounts For Different Investors and Traders