Investing in the stock market can be a lucrative way to grow your wealth over time. However, before you can start investing, you need to open a Demat account. A Demat account is a digital account that holds your stocks and other securities in an electronic format. In India, there are several financial services companies that offer Demat accounts.
Best Demat Account For Trading In India
In this blog, we will discuss the best Demat accounts in India for beginners.
Angel Broking
Angel Broking is a full-service brokerage firm in India that offers a range of financial products and services, including Demat accounts. Angel Broking offers a user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. Angel Broking offers a free Demat account, and there are no account opening charges. They also offer free equity delivery trading, which means you don’t have to pay any brokerage fees for buying or selling stocks for delivery. However, they do charge a fee for intraday and F&O trading.
Upstox
Upstox is a popular discount brokerage firm in India that offers a range of financial products and services, including Demat accounts. Upstox offers a simple and user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates, which makes it a great option for beginners. Upstox offers a free Demat account, and there are no account opening charges. They also offer free equity delivery trading, which means you don’t have to pay any brokerage fees for buying or selling stocks for delivery. However, they do charge a fee for intraday and F&O trading.
Zerodha
Zerodha is another popular discount brokerage firm in India that offers a range of financial products and services, including Demat accounts. Zerodha offers a simple and user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates, which makes it a great option for beginners. Zerodha offers a free Demat account, and there are no account opening charges. They also offer free equity delivery trading, which means you don’t have to pay any brokerage fees for buying or selling stocks for delivery. However, they do charge a fee for intraday and F&O trading.
5Paisa
5Paisa is a discount brokerage firm in India that offers a range of financial products and services, including Demat accounts. 5Paisa offers a simple and user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates, which makes it a great option for beginners. 5Paisa offers a free Demat account, and there are no account opening charges. They also offer free equity delivery trading, which means you don’t have to pay any brokerage fees for buying or selling stocks for delivery. However, they do charge a fee for intraday and F&O trading.
Groww
Groww is a popular investment platform in India that offers a range of financial products and services, including Demat accounts. Groww offers a simple and user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. Groww offers a free Demat account, and there are no account opening charges. They also offer free equity delivery trading, which means you don’t have to pay any brokerage fees for buying or selling stocks for delivery. However, they do charge a fee for intraday and F&O trading.
SBI
SBI is a popular public sector bank in India that offers Demat accounts to its customers. SBI offers a user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. SBI offers a free Demat account, but there are account opening charges. They also charge brokerage fees for all types of trading.
ICICI
ICICI is a popular private sector bank in India that offers Demat accounts to its customers. ICICI offers a user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. ICICI offers a free Demat account, but there are account opening charges. They also charge brokerage fees for all types of trading.
Sharekhan
Sharekhan is a full-service brokerage firm in India that offers a range of financial products and services, including Demat accounts. Sharekhan offers a user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. Sharekhan offers a free Demat account, but there are account opening charges. They also charge brokerage fees for all types of trading.
Motilal Oswal
Motilal Oswal is a full-service brokerage firm in India that offers a range of financial products and services, including Demat accounts. Motilal Oswal offers a user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. Motilal Oswal offers a free Demat account, but there are account opening charges. They also charge brokerage fees for all types of trading.
IIFL
IIFL is a full-service brokerage firm in India that offers a range of financial products and services, including Demat accounts. IIFL offers a user-friendly platform for trading in stocks, derivatives, and commodities. Their trading platform is available in both web and mobile versions, and they offer competitive brokerage rates. IIFL offers a free Demat account, but there are account opening charges. They also charge brokerage fees for all types of trading.
Beginners guide to open a demat account
If you are new to investing in stocks, you may be wondering how to open a demat account in India. A demat account is an account that allows you to hold and trade shares in electronic format, rather than in physical certificates. Here is a beginner’s guide to opening a demat account in India:
Step 1: Choose a Depository Participant (DP) The first step in opening a demat account is to choose a depository participant (DP). A DP is a financial institution that acts as an intermediary between you and the depository, which is a central agency that holds and maintains electronic securities. In India, there are two depositories: National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). You can choose a DP that is registered with either NSDL or CDSL.
Step 2: Check the eligibility criteria Before opening a demat account, you need to check the eligibility criteria set by the DP. Generally, individuals who are 18 years or older and residents of India are eligible to open a demat account. Some DPs may also require you to have a savings bank account with them.
Step 3: Fill out the account opening form Once you have chosen a DP and checked the eligibility criteria, you need to fill out the account opening form. The form is available on the DP’s website or can be obtained from their office. You will need to provide your personal details, such as your name, address, date of birth, and PAN (Permanent Account Number) card number. You will also need to provide your bank account details and your signature.
Step 4: Submit the necessary documents You will need to submit the necessary documents along with the account opening form. These documents include:
- PAN card: A copy of your PAN card is mandatory for opening a demat account.
- Address proof: You can submit a copy of your passport, driving license, voter ID card, or Aadhaar card as proof of address.
- Identity proof: You can submit a copy of your passport, driving license, voter ID card, or Aadhaar card as proof of identity.
- Passport size photographs: You will need to submit two passport size photographs along with the account opening form.
Step 5: Sign the agreement Once you have submitted the necessary documents and the account opening form, you will need to sign the agreement. The agreement outlines the terms and conditions of the demat account, such as the brokerage fees, account maintenance charges, and other fees.
Step 6: Activate the account After signing the agreement, you will receive a welcome kit from the DP, which will include your demat account number and other important details. You will need to activate the account by linking it to your trading account.
Step 7: Start trading Once your demat account is activated, you can start trading in shares. You will need to transfer funds from your bank account to your trading account to buy shares. You can also sell shares and the proceeds will be credited to your trading account.
Opening a demat account in India is a simple process that can be completed in a few steps. By following this beginner’s guide, you can open a demat account and start trading in shares. Remember to choose a reliable DP, submit the necessary documents, and read the agreement carefully before signing it.
Conclusion In conclusion, there are several financial services companies in India that offer Demat accounts. However, when it comes to choosing the best Demat account for beginners, it is important to consider factors such as account opening charges, brokerage fees, trading platforms, and user-friendliness.
Upstox, Zerodha, Angel Broking, 5Paisa, Groww, SBI, ICICI, Sharekhan, Motilal Oswal, and IIFL are some of the best Demat accounts in India for beginners, and each of them offers its unique set of features and benefits. As a beginner, it is important to research and compare different options before choosing the one that best suits your needs and preferences.