The entire process of Stock / Shares / Securities in Share Market runs on an electronic system, with the help of which anyone can buy and sell those Shares / Stocks through the Internet from the existing marketplace.
So just as a bank account is required for money transactions, similarly a special account is required to buy and sell stocks. With the help of which any person can trade stock or share from anywhere through electronic medium. Where SEBI has said that it is necessary to have a demat account for trading stock / share, without which no person can buy and share any stocks.
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What is Demat Account
Demat account simply means ending the paperwork being done for buying and selling shares and giving it a digital form. When shares / stock are being traded, Demat Account provides a storage facility, through which share is provided digitally and added to the account. Demat account is like a special account, whose main purpose is to provide security to the shares / stock, so that the share / stock can be safely added and transferred.
In other words, just as the money is kept securely in a bank account by providing digital form, similarly shares / stocks are stored digitally and securely in a Demat Account.
Difference between Demat Account & Trading Account
Both Trading Account and Demat Account are corelated with each other but still many differences are found in them.
- Trading account is used to buy and sell share / stock, while Demat account is used for storing those shares.
- Where, Trading Account is used for placing or ordering in stock exchange and Demat Account is used to securely deposit and securely transfer those stocks.
- Trading account is part of a digitally running system whereas Demat account is a form of “dematerialized account”.
In Demat Account, you have an account that works for depositing and withdrawing shares in digital form and Trading Account gives you the facility to buy or sell and trading shares from anywhere.
Top 10 Demat Account in India
There are many companies in India that provide the facilities of Trading Account and Demat Account at a very low cost. Given their complete information below, you can choose the best Demat and Trading Service for yourself.
- 5Paisa
- Zerodha
- Sharekhan
- Angel Broking
- Religare
- Aditya Birla
- Kotak Securities
- Motilal Oswal
- Ventura Securities
- ICICI Direct
1. 5Paisa Demat and Trading Account
If you want to open your Demat Account, then in today’s date 5Paisa is the best option for this. You can open your Demat account on 5Paisa within 15 minutes. This is different from all accounts because it is a very easy and low cost demat account. In this, if you open an account, then you get first 5 Transactions Free, and later on every transaction there is a charge of Rs 10 per transaction no matter how much Rupees your transaction is.
Benefits of 5Paisa
5Paisa provides you many different types of services, some of which are as follows:
- There is no cost of account maintenance in the first year, it is absolutely free.
- You can also invest in Mutual Fund from this single account and can also buy insurance.
Charges of 5Paisa Account
- The fee of Account Maintenance for 2 years is Rs. 400 / -. {Best demat account lowest brokerage}
- It takes a fee of Rs 650 / – to open a demat account, but you can ask for a discount in customer support if you want. If your offer continues to move more, then you can open it completely free too.
5Paisa brokerage structure and Margin facility – It is a very good serviceable demat account company and it charges very less transaction charges than any other demat account. So if you want, you can open your Demat and trading account within 5 minutes in 5Paisa.
2. Zerodha Demat and Trading Account
Zerodha is India’s largest financial services company, offering discount broking services. If seen, Zerodha is the best platform for small investors. Because there is no charge on trade delivery and when it comes to Brokerage Rate, then for every order i.e. buy sell, it will charge 0.01% of its value or Rs 20, whichever is less. This means that no matter how big the transaction value is, the maximum order change will be up to Rs 20 only.
This is the reason that more than 2 lakh trading customers are associated with Zerodha today and on an average, more than 10 thousand crores transactions are done on Zerodha everyday. There is also a 60 Day Challenge in which if a trader earns a good profit in a period of 60 days, then he will be declared a Winner and all the brokerage change on it will be refunded. (Maximum brokerage refund is Rs. 6000 per challenge.
Benefits of Zerodha
Zerodha provides solutions to all the problems of investors and traders in one place. Its website, which is specially made for low internet speed users, proves very helpful.
Zerodha Brokerage has no minimum per transaction and no brokerage charge on delivery.
Zerodha offers 4 to 10 times margin facility and Zerodha also has its own Mobile App with the help of which you will be able to trade easily.
Charges of Zerodha Account
- Trading Account Open Charge – Rs. 0
- Trading Account Maintenance Charge – Rs. 0
- Demat Account Open Charge – Rs. 300 (once)
- Demat Account Maintenance Charge – Rs. 300 (yearly)
So Zerodha is also a good company offering a Demat Account Service, if you want, you can easily open Demat Account in Zerodha in no time. {Best demat account for long term investment}
3. Sharekhan Demat & Trading Account
Sharekhan was established in February 2000 and is headquartered in Mumbai. Today it has more than 2600 Branches in 575 City in India and with more than 4800 employees. It handles more than 12 lakh customers. There are two types of accounts in Sharekhan –
Classic Account – This is an Online Trading Account which is very useful for general trading and investment.
Trade Tiger Account – Mainly for those traders who actively do Daily Trading. {Best demat account in india 2021}
Charges of Sharekhan Account
- 0 rupees to open trading account.
- 0 rupees for opening a demat account.
- Annual Account Maintenance expenses Rs 750 yearly.
4. Angel Broking Demat And Trading Account
Angel brokerage is the oldest brokerage company in India, which has its network Branches in more than 900 cities in India. Speaking of today, this company alone is providing financial service to over 10 lakh customers in Broking. It is also a good company, you can choose for yourself by looking at its service and charges.
Benefits of Angel Broking
Angel Broking also has a Mobile App with the help of which you can easily track your portfolio by looking at the current market position, prices and changes.
This is a good platform for tracking of Portfolio and Updates Information in the market. This also provides all the information and live news of the market.
You can start your trading through Digital KYC within 1 hour and along with this you will be provided with the service of Free SMS Advisor for the first three months. {Best demat account in India 2020}
Charges of Angel Broking Account
- Charge for Trading Account Opening Rs. 0
- Charge for Demat Account Opening Rs. 0 {free demat account with no annual charges}
- Angel Classic trading from 10,000 to 24,999 – 450 rupees charge yearly
- Angel Preferred trading from 25,000 to 49,999 – There is no maintenance charge in the first 1 year and 450 rupees every year after that.
- There will be no maintenance charge in AP in the first 2 year, trading from 50,000 to 99,999 and then 450 rupees every year.
- Also there is no AMC charge for the first 3 years for trading with Rs 1 Lakh or more and after that there is a yearly charge of Rs 450.
5. Religare Demat And Trading Account
Religare security limited is a financial service group providing services to more than 8 lakh customer on both online and offline platforms. You can choose for yourself by looking at its charges and services.
Benefits of Religare Securities Ltd
In RSL, you will be able to invest in equity, derivative, currency, security, commodity and mutual funds etc. through one account.
It provides you with a mobile trending platform, with the help of which you will be able to trend at any time and from anywhere.
And also provides you the facility of Historical Chart with Intraday Reporting.
Charges of Religare Account
- Trading Account Opening Charges – Rs. 0
- Demat Account Opening Charge – Rs. 0
- Demat Account Maintenance – First year Free and Rs. 500 Yearly
- Intraday Charges – 0.05% {best demat account for intraday}
- Delivery – 0.50%
Also read: Groww Demat and Trading Account Open Online – Opening Procedure, Forms and Latest Offers
6. Aditya Birla Demat And Trading Account
You must have heard the name of Aditya Birla many times. This financial service company benefits more with very low charges. In this Demat account, charge is also less and margins are also many times higher, if you want to get more benefits with less charges then you can open Demat Account in Aditya Birla.
Charges of Aditya Birla Account
- To open a Demat Account, there is a charge of Rs. 0.
- 450 rupees yearly charges of Demat Account Maintenance
- Charges for opening a trading account- Rs. 750 rupees
- Trading Account Maintenance charge is also Rs. 0.
7. Kotak Securities Demat And Trading account
Kotak securities gives you a Demat Account that will enable you to easily invest in equity, mutual fund and currency derivative and also keep the certificates of shares, brand, securities, mutual funds and exchange all in one place. This is very useful and friendly Demat Account mainly for new Traders and small Investors.
Benefits of Kotak Securities
Kotak securities offers 4 types of trading platforms to its investors as per their requirement.
- Its share trading website which can be access from anywhere and even with slow internet, investors can use it.
- Kotak also offers a Mobile App through which Trades can execute, portfolio monitoring, streaming Kotak and intraday charts. {best demat account for day trading}
- It facilitates investors through more than 1400 branches.
- Kotak offers many investment options. It provides facilities of SMS alerts, market points, provisional report etc.
Charges of Kotak Securities Account
Demat Account Opening Fees- 0 Rs.
Demat Account Maintenance Charge- 600 rupees yearly
Trading account opening charge- Rs. 750 rupees
Trading Account Maintenance charge- Rs. 0 rupees
8. Motilal Oswal Demat and Trading Account
Motilal Oswal is also a company providing financial services to more than 7.5 lakh customers with 1700+ Branches. Which gives you three types of trading platforms that make trading very easy –
1. Desktop Trading Platform
2. Web Trading Platform
3. Mobile Trading Platform.
In addition, the research advisors cover 95% of the market and you are given the first month’s brokerage charge free. For this reason, it is the third-ranked financial services company in India that provides all types of services.
Charges of Motilal Oswal Account
There is no charge for opening Demat Account and Trading Account.
And for the maintenance of account Rs. 450 is taken as a yearly charge.
9. Ventura Securities Demat Account
Ventura Securities is also a good financial service providing company that provides almost all types of financial services. It also has a Mobile App which is very useful for trading, with the help of which trading becomes easy.
Account Charges are very low in this and apart from this it offers three types of trading platforms –
1. Ventura Pointer
2. Web Based Trading or Ventura Wealth which are useful for investors.
There are many plans in it, with the help of which you can invest. If you open an account, then you will have to pay the amount of the plan at that time. The brokerage plan charge is as follows.
Charges of Ventura Securities Account
Trading account opening charge- 150 Rupees
Trading Account maintenance charge- 0 Rupees (Nil)
Charge to open Demat Account- Rs 300
Demat Account maintenance charge- First year free and after that Rs 400 yearly
10. ICICI Direct Demat and Trading Account
ICICI Direct is India’s largest Financial Service Provider Company with 20 lakh customers. If you have a savings account in ICICI and you want to invest in Mutual Fund or trading but your investment value is low, then you can use ICICI Direct, which will give you many benefits.
It allows you to keep three account together – Saving Account + Trading Account + Demat Account.
ICICI Direct has the option of Trading and Invest, in which you can invest in equity, derivative, mutual funds, SIP, IPO, NCD and bonds. ETF and currency and also you can take a loan in lieu of security.
It also offers you two platforms according to your interest –
1. Share Trading Account
2. Trade Racer
ICICI Direct is the best option for low investment value, in which you can transfer money easily.
Charges of ICICI Direct Account
Demat Account Opening- Rs. 100
Demat Account Maintenance- Rs. 500
Trading Account Opening- Rs. 975
Trading Account Maintenance- Rs. 0
Our Recommended Best Demat Account Forever
Zerodha vs 5Paisa
See if you talk about the best Demat Account, then two accounts come in it, 5Paisa and Zerodha. But out of these two, it is clearly the question of which one is the best, so this task is quite difficult. Because both are offering their best services, you can compare them and make a choice for yourself.
Charges of Zerodha and 5Paisa
In 5paisa you will have to pay 650 Rupees for this, while in Zerodha this is a total of 300 Rupees Charges.
Maintenance Charges- In case of Zerodha, there is a charge of Rs 300 per year and in 5Paise the first year maintenance charge is free, whereas from the second year it becomes Rs 400 per year.
Brokerage Charges- The most important thing if you are a daily trader, then brokerage charge is very important for you. In 5Paisa, where they take Rs. 10 / – on every Transaction, that is, whatever amount of Transaction you have done, you have to pay only 10 rupees on it. But in Zerodha, you get 0.01% of that Amount or 20 rupees whichever is less on every transaction. That is, 0.01% if below Rs. 20 lakh and if above, then Rs. 20 brokerage charge.
Delivery Charges- There is no Delivery Charge in Zerodha and the rest of the charges are 0.01% or 20 rupees only. Talking about 5Paisa, the first 5 Transactions are Free and 10 Rupees fixed charge on all other types of delivery.
User Interface of Zerodha is a little friendly to the user and 5Paisa is a bit complex. You can see below for other information and if you want to open your Demat Account now, then you can open the account within 15 minutes by visiting Zerodha or 5Paisa’s website.
Things To Keep In Mind For New Investors
For beginners, the only problem may be its customer service which should not be fine but the best. However, you have to see if you need anything more than this.
Once you have decided which broker will be best for your needs, to open a demat account, all you need is the following documents:
- PAN Card (Mandatory Document)
- Id proof
- Address proof
- Photography
Finally, we repeat the fact that there is no such thing as a ‘best’ share broker – that stock broker is always the ‘best’ that suits your needs and goes with your preferences. We would also like to mention that you should ensure that you do not go to a stockbroker who is not registered with SEBI.
