Demat accounts are different from trading accounts. The latter is an account which allows investors to place their stock orders on the exchanges. People who want to invest in derivatives or purchase shares need to have a trading account.
After you have place the order for preferred shares on the exchanges and have been allocated the shares, they need to be sent for safekeeping at some place. All the stocks are stored in a digital form in a specific place, which is referred to as a demat account. Demat account is an abbreviated form for ‘dematerialized account’ which shows that the shares are stored in digital form and not as paper.
Demat accounts are mandatory for investors who want to sell or buy shares so as to be able to store them during the holding period. People who want to begin investing in the equity market need to be smart when opting for a demat account, else they may end up paying large sums of money as charges and fees for each stock transaction. It may also be noted that charges for maintaining and opening a demat account are also applicable. Thus, you need to find out all the charges involved and their performance over the past years before opting for a demat account that is ideal for you.
Presented below is a list of 5 best demat accounts in India.
It is one of the most well-known online brokers and demat account providers in the country. The popular company was acquired by BNP Paribas in 2015, but it continues to be the preferred demat account provider for millions of investors in India.
Sharekhan offers all options of trading, i.e., in IPO, equities, currency, F&O, and commodities. The pricing chart is really simple. The company offers a prepaid option so as to decrease the brokerage fees for a specific period of time. It also does not levy any payment gateway fees, from and to the bank.
- Sharekhan does not charge any fees for opening a trade and demat account. It however does levy a fee of INR 400 as annual maintenance for your demat account.
- The brokerage fee for intraday trading is 0.1 percent on the sell as well as the buy sides. This charge is subject to a fee of at least 5 paise per sold/purchased share.
- For Options trading, there is a charge of 2.5 percent of premium or INR 100 per lot, whichever is higher.
- Charges for trading in equity futures are 0.1 percent during the first leg. For the second leg, the fee is 0.02 percent if you square off on same day, and 0.10 percent charge for squaring off on other days.
- Charges for equity delivery are 0.5 percent on both sell and buy sides subject to a fee of at least 10 paise per share. A brokerage fee of INR 16 per scrip is levied as sell delivery charges for orders of not more than INR 3200.
- All charges for applicable taxes are extra.
Zerodha is one of the largest discount brokerage firms in India and is regarded as the first online discount broker in the country. The company came up with the idea of discount broking suite that levied a flat charge irrespective of the size and amount of transaction. Thus, irrespective of whether the value of an initiated trade was INR 1 crore or INR 10,000, the brokerage fee levied by the company would be the same amount in both cases.
The discount brokerage option was not the end of it all. Zerodha also decided to charge no fees for delivery trading. This was instrumental in decreasing the barriers for retail small investors in the share market. This resulted in rapid growth of the firm and made it one of the top contributors in terms of volume; the average turnover of trade at the company is more than INR 10,000 crores.
- Zerodha offers trade in just about all segments, including NSE, BSE, BTST, Forex Trading, MCDEX, Mutual Funds, and Spot Trading, etc.
- Fees for opening a demat account are INR 100. The annual maintenance charges for the demat account are INR 300.
- The fee structure at is a flat brokerage charge of INR 20 per transaction or trade. It also does not charge any stock delivery fees.
- Equity and intraday futures trading come with a charge of INR 20 per trade or 0.01 percent per trade, whichever amount is lower.
- ICICI Direct
ICICI direct has been in the brokerage and demat business for decades and has been popular with millions of investors. The brand is a trusted one and the preferred choice of retail small investors in all segments, including mutual funds, stock investments, corporate bonds, or other instruments being traded. ICICI Direct accounts are ‘three in one’ accounts, which means that it consists of a demat account, a trading account, and a bank account. It is very easy to open an ICICI Direct demat account online.
- ICICI Direct offers trading in all segments, including NSE, BSE, Spot Trading, BTST, Mutual Funds, IPO, and Term Insurance, etc.
- There is a flat charge of INR 750 for opening a demat account. This fee is inclusive of opening charges for all, i.e., a trading account, a demat account, and if you want, a bank account.
- ICICI Direct is regarded as one of the costliest brokerage firms in India. Two of the plans offered by the company are ICICI Direct I-Saver Account and ICICI Direct I-Secure.
- Charges for ICICI Direct I-Saver account are, equity delivery charges ranging between 0.75 percent and 0.25 percent as per the volume of trade and equity intraday charges ranging between 0. 375 percent and 0.125 percent as per trading turnover per calendar quarter
- ICICI Direct I-Secure comes with a flat fee for demat trading account. Other charges include 0.275 percent flat charge for equity intraday and 0.55 percent flat charge for equity delivery.
- Both the above plans have a similar fee structure for currency future, equity future, currency options, and equity options. It is important for investors to carefully check all the applicable charges and fees so as to avoid unwanted and undesired surprises.
- IIFL (India Infoline) online/5paisa.com
India Infoline (IIFL) and the company’s online platform named ‘5paisa.com’ offer a ‘two in one’ trading and demat account. The brokerage firm offers all trading services. It has smartphone apps for purposes of trading. A few unique options offered by the firm include equity SIP.
- IIFL/5paisa offers trading in all segments, including MSE, BSE, NCDEX, mutual funds, MCX, currency, commodities, and IPOs, etc.
- The firm does not levy any demat account opening charges. Fee for opening a trading account is INR 650. The annual maintenance charges for trading and demat account is INR 400 after first year.
- Brokerage charges include INR 10 per executed trade/order for equity intraday; INR 10 per executed trade/order for equity futures; INR 10 per executed trade/order for equity delivery; INR 10 per executed trade/order for equity options; and INR 10 per executed trade/order for currency F&O.
- Angel Broking
Angel broking is another full service brokerage firms in India. The popular company has its presence all across India and even has numerous sub-brokers throughout the country for the benefit of investors who want to trade with the help of a broker instead of trading online.
- Angel broking offers trading in all segments such as MCX, BSE, NSE, and NCDEX, etc. Investors can trade on apps or via browsers with the help of Angel Swiftland, Angel SpeedPro, Angel Eye, and Angel Lite. The firm has also started ARQ advisory/assistance services for optimization of portfolio.
- Angel broking does not levy any fee for opening a trading and demat account.
- Several plans are offered by the company, namely, Angel classic, Angel Premium, Angel Preferred, and Angel Elite. Investors can check out the features of the plans and select one which best suits their trading volumes. Brokerage charges for each of these plans vary accordingly.
- Angel classic is for investors with Trading/Delivery volume of INR 10,000 to INR 24,999. Charges for this plan are 0.32 percent for equity delivery; 0.32 percent for equity futures; 0.32 percent for equity inter trade; INR 40 for Nifty Options; and INR 80 for other Options.
- Angel Premium is for investors with Trading/Delivery volume of INR 50,000 to INR 99,999. Charges for this plan are 0.176 percent for equity delivery; 0.0176 percent for equity futures; 0.0176 percent for equity inter trade; INR 24 for Nifty Options; and INR 48 for other Options.
- Angel Preferred is for investors with Trading/Delivery volume of INR 25,000 to INR 49,999. Charges for this plan are 0.224 percent for equity delivery; 0.0224 percent for equity futures; 0.0224 percent for equity inter trade; INR 32 for Nifty Options; and INR 64 for other Options.
- Angel Elite is for investors with Trading/Delivery volume of INR 100,000 and more. Charges for this plan are 0.128 percent for equity delivery; 0.0128 percent for equity futures; 0.0128 percent for equity inter trade; INR 16 for Nifty Options; and INR 32 for other Options.