Best Demat Account in India

If you are looking to invest in the stock market, having a demat account is the first step towards it. A demat account serves as a digital repository that securely holds your shares and securities in electronic form, making trading easy, convenient, and secure. Choosing the right demat account is a must for a seamless investing experience.

But how do you choose the best demat account in India? So many options are available, each with its features, charges and benefits. How do you compare them and find the one that suits your needs and preferences?

Don’t worry; we have got you covered. In this blog post, we will help you find the best demat account in India by comparing some of the most popular ones on various parameters. We will also give you some tips on how to open a demat account and what to look for when choosing one.

So, let’s get started!

6 Best Demat Accounts in India

So here is the list of best demat accounts in India 

1. Zerodha

Zerodha offers a Demat account that lets you trade in various segments with either zero or low brokerage. It offers a range of online tools and platforms like Kite, Coin, Varsity, Console, etc. and has one of the most robust customer support systems. 
Build-in house, Kite is India's simplest stock trading app. With a user-friendly interface, advanced features like 100+ indicators and cover/GTT orders, and multilingual support, Kite is a trader's dream.

Pros: 

• Zero brokerage for equity delivery trades, which means you don’t have to pay any commission for buying and selling shares in the cash segment.
• Low brokerage for other segments, such as equity intraday, futures, options, and currency, which is 0.03% or ₹20 per executed order, whichever is lower.
• Kite, a user-friendly platform, is available on both desktop and mobile devices and offers a simple and intuitive interface for trading and investing.
• Direct mutual fund investments, through Zerodha’s platform called Coin, allow you to invest in direct plans of mutual funds without any commission or fees.
• Customer support through phone, email, and chat is very responsive and helpful.

Cons: 

• Account opening and maintenance charges, which are ₹300 for opening a demat account and ₹300 per year for annual maintenance charges.
• Only the Indian market is covered, which means you cannot trade or invest in foreign markets or currencies through Zerodha.

2. Groww

Customers can use the Groww app for free and open an account with no maintenance costs. The app lets them invest in mutual funds without any transaction or hidden fees, but for stocks, they have to pay some fees like brokerage, Demat, and other taxes and duties. Groww charges a flat fee for each stock trade and has the simplest and most transparent pricing model.

Pros: 

• Zero account opening and maintenance charges, which means you don’t have to pay any fees for opening and maintaining your demat account.
• Instant and paperless online account opening, which means you can open your demat account in minutes without any physical paperwork
• Users can also purchase US equities, US ETFs, US FDs, and digital gold.
• Commission-free investment for customers on Mutual Funds.

Cons: 

• No commodity and currency trading, which means you cannot trade or invest in commodities and currencies through Groww.
• No advanced orders, such as GTT, bracket, cover orders, and AMO orders, means you cannot place orders that are triggered automatically based on certain conditions.
• It does not provide research reports on stocks and doesn't offer analysis, trading advice, or recommendations.

3. Upstox

With Upstox accounts, one can open a Demat account to trade in various products like shares, digital gold, futures, mutual funds, and more. It also gives live updates on the trading market to help users make the right choice. One can start investing with Upstox by opening a Demat account for as low as one rupee. It also offers no commission on Mutual Funds and IPOs and a nominal fee of just ₹20 per order on Equity, F&O, Commodity, and Currency trading. 

Pros: 

• Upstox’s morning newsletter is a great source of insights and a quick overview of the market situation. It is well-structured and easy to read.
• With Upstox, you get free delivery transactions, low and consistent trading fees, and the option to borrow money for trading using your shares as security.
• Upstox provides you with different kinds of knowledge resources, from technicals to fundamentals of investing.
• You can switch between TradingView and ChartsIQ libraries with ease when you use Upstox.

Cons: 

• If you are an NRI, a Hindu Undivided Family, or a Company, you can only open a demat account by filling out some forms and sending them to us. You cannot do it online.
• Customers must exercise caution when choosing a mutual fund because both direct and standard plans are available.
• When intraday square-off orders are not squared off by the customer, an additional ₹20 is charged for each executed order.

4. 5paisa

5paisa provides affordable financial services such as online trading, mutual funds and insurance. They charge only ₹20 per order for any kind of trade, whether it is Equity Delivery, Intraday, F&O or Currency Derivatives, and have a simple and low-cost brokerage model.

Pros: 

• Whether you're a beginning trader, investor, or expert trader, 5Paisa brokerage plans have something for you.
• All-in-one account for stock, mutual fund, commodity, currency, research, and advisory investments.
• 5paisa offers traders a cutting-edge trading platform and free technical, derivative, and fundamental research.

Cons:

• Customer support is inadequate.
• 5Paisa doesn't provide services for NRI traders.
• Call & Trade is offered, albeit at a significant premium.
• Expenses for exchange transactions are higher than those of other discount brokers.

5. HDFC Securities

HDFC Securities offers over 30 products and serves over 1 million customers across different segments.
It has the lowest brokerage rates of 0.10% per trade for Equity Delivery and ₹20 per transaction for derivatives trading. HDFC Securities also provides a 3-in-1 account that combines a savings bank, trading, and a Demat account. Customers can use one account for all their investment needs.

Pros: 

• To handle all financial transactions in a single place, you can use a 3-in-1 account option by HDFC Securities.
• You get automated chat assistance from the intelligent virtual assistant ARYA.
• There are several tools and services, such as portfolio analysers and HDFC Blink, for monitoring services.
• With global investment opportunities, there is the choice to purchase both US and Indian equities and exchange-traded funds.

Cons:

• HDFC brokerage is fairly expensive, but it is negotiable for investors who invest large amounts of money.
• Its terminal-based trading platform, HDFC Blink, operates on a fee-based subscription model.
• Tips and research services provided via SMS are paid services.

6. Axis Direct

Through Axis Direct, you can open a 3-in-1 account that combines a savings bank, trading, and a Demat account for seamless transactions. You can also access research and analysis tools to help you make intelligent investment decisions. 

It offers free research reports to its customers and classroom sessions, webinars, Online Tutorials and Articles by Experts to help beginners understand the basics.

Pros:

• Users benefit from a seamless and error-free trading experience because of the availability of 3 in 1 account services.
• Convenient access to several financial instruments and market areas.
• Detailed research reports and professional advice on stocks and investing.
• Real-time updates on trading platforms and applications.

Cons:

•  Some customers have faced poor support.
• Axis Direct has high fees and charges for its services when compared to other brokers.
• Its trading platform is not free.

Here is the comparison table:

Conclusion

A Demat account is a must-have for anyone who wants to invest in the stock market. However, choosing the best Demat account in India can be daunting, as so many options are available.

But, what if we tell you about a platform that can compare brokers offering demat accounts in seconds, and not just compare, help you open the demat account too?
This will surely help you take your first step towards your stock market journey.

Let us tell you that the platform we are talking about is Finology Select. 

Finology Select helps you compare and choose the best Demat account that suits your needs on every factor. By leveraging our comprehensive tools and resources, you can confidently open your demat account.

So, if you're ready to embark on your investment journey, take advantage of the services offered by Finology Select and open your demat account today. Remember to assess your goals, research thoroughly, and choose the demat account that best suits your needs. Start investing and make your mark in the stock market!