Demat Account is mandatory for buying and selling stock in the stock market. Demat account is used to hold shares and mutual funds in the electronic form. It is very easy to open a demat and trading account. There are multiple banks such as ICICI, HDFC, SBI where you can open a demat account. Apart from banks, 30+ stock and brokerage houses offering demat and trading account. The features and benefits offered by banks, stock and brokerage house are almost similar. It becomes difficult for the investor to select the best demat and trading account. If you are one of them, here is a list of Best Demat and Trading Account in India. These accounts are selected based on fees, trading charges, features and customer support services.
Difference Between Demat and Trading Account
The key difference between a Demat and Trading account is the Demat account is used to hold shares and mutual funds in the electronic format. On the other hand, trading account is used to buy and sell securities in the stock market. Demat is the short form of “Dematerialized Account”. Dematerialized account means securities held in the electronic format.
Although Demat and Trading account are two words both are interrelated and used together for representing account. The Demat and Trading Account is known as 2-in-1 account. If saving account is associated with this type of account it is known as 3-in-1 account. Now let’s take a look at a few things which you should consider before selecting Demat & Trading Account.
Also Read – 10 Best Dividend Stocks in India
Things to consider while selecting a Demat & Trading Account
The first thing to check while opening a demat account is a trading platform. Some of the stock brokerage houses give a very good trading platform with user friendless and speed. Some of them give terminal access for doing fast trading. Apart from that few brokerage houses also provide additional tools and apps. You should select the account based on your needs.
Brokerage and Other Cost
You should check brokerage charged and other cost associated with demat and trading account. Some of brokerage house charge flat fee structure with per trade charges. While other charges fixed brokerage charges irrespective of trade. You should consider brokerage and annual maintenance charges before opening a demat account.
One of the most important factor while making a selection of a demat cum trading account is customer support. The brokerage house/bank should provide very good customer support to the customer along with guidance.
Mobile App Support
Mobile App has become one of the mandatory requirement nowadays. The brokerage house/bank offering demat cum trading account should provide a mobile app for doing a transaction on the move. The mobile app should be easy to use and fast.
Full Service vs Discount Broker
There are two types of broker available in the market (1) Full Service (2) Discount Broker
- Full Service
A full-service broker is also known as a traditional broker. The full-service broker provides full (end-to-end) services to the customer. This includes research, advisory, investment, wealth management, and portfolio services. The full-service broker operates online as well as offline. The full-service broker has a dedicated team for doing technical and fundamental analysis. The brokerage charges of a full-service broker are higher compared to a discount broker.
- Discount Broker
Discount Broker only offers brokerage services. If you are a trader you should prefer a discount broker. The discount broker charges a flat fee for each executed order irrespective of trade value. The discount broker operates online with zero branch office concept. A discount broker is preferred by do it yourself investors.
Best Demat and Trading Account – Discount Broker
Zerodha is the largest discount broker in India. Zerodha is famous for its technology and the lowest trading rate. Zerodha is best for small investors and traders. Zerodha offers free equity investments with flat Rs.20 or 0.01% (whichever is lower) intraday and F&O trade. Key features of the Zerodha Account are given below.
- Free equity investment. No brokerage on delivery.
- Lowest brokerage charge.
- Fast and user-friendly trading investment platform.
- Completely online account opening.
- Mobile app for trading on the move.
Trading Account Opening Fee – NIL
Demat Account Opening Fee – Rs.300
Equity Intraday & Future trading brokerage Rs.20/per trade or 0.01%
AMC – Rs.300
5Paisa is most popular and one of the best discount broker in India. 5Paisa demat & trading account is recommended for both beginner and advance investors. 5Paisa offers flat brokerage of Rs.10 per trade irrespective of trade amount.
- Integrated platform for equity, mutual funds and insurance
- Paperless process of account opening
- Ultra-fast mobile application for trading
- Real time advisory via robo advisor
- Automated trading tool based on pre-defined parameters
Account Opening Fee – NIL
AMC Charges – Rs.45+GST per month
Brokerage Charges – Rs.10 per trade
Upstox is one of the most popular fast, reliable and popular discount stock broker in India. Upstox offers easy to use trading platform. Upstox also provides facility to invest in the mutual funds. Upstox offers free equity delivery trades. The brokerage charge of Upstox are similar as that of Zerodha. You need to pay Rs.20 per trade or 0.01% (whichever is lower) for intraday trading.
- Fix low cost brokerage charges
- Fast trading platform Pro Web for Pro traders
- Light weight mobile app (Pro Mobile) for trading
- Very good customer support with live chat option
- Complete online process of opening demat account
Account Opening Fee – Rs.150
AMC Charges – Rs.150
Brokerage Charges – Rs.20 per trade or 0.01%
Best Demat and Trading Account – Full Service
#1 ICICI Direct
ICICI Direct is one of the most popular full service broker. ICICI Direct offers 3-in-1 account for the customer. ICICI Direct provides simplest and efficient online platform for the stock market investment. ICICI Direct offers facility to invest in equity, mutual fund, IPO, NCD, Bond and other products. Key features of ICICI Direct account is given below.
- 3-in-1 account offer facility to invest in equity, mutual fund, IPO, NCD etc.
- Fast and user friendly trading cum investment platform along with mobile, Call-N-Trade facility.
- Unified investment dashboard for viewing investment at single page.
- Investment advice, wealth management and portfolio management services.
- You can trade on both BSE and NSE via ICICI Direct.
- Customer support service by ICICI Direct is very good.
Account Opening Fee – Rs.975
Brokerage for I-Secure Plan – Flat brokerage 0.55% in delivery.
Brokerage for I-Saver Plan – Brokerage range from 0.25% to 0.75%
AMC – Rs.600
#2 HDFC Securities
HDFC Securities offers one of the best demat cum trading account. HDFC Securities offers 3-in-1 account. All these account are linked together and operates as single account. You can use HDFC securities account for trading at BSE, NSE, future trading as well as investment in IPO. Key features of HDFC Securities demat account are given below.
- Fast and transparent. Orders are placed electronically and executed instantly.
- HDFC Securities offers highest level of securities such as 128 bit encryption technology.
- Dedicated and Separate contact numbers for trading over the phone as well as customer care.
- Access to research reports and investment advice.
- Personalized trading platform on browser as well as mobile app.
- Accessibility to advance trading platform – ProTerminal
Account Opening Fes – Rs.999
Brokerage – 0.50% for delivery
AMC – Rs.750
Sharekhan is India’s largest brokerage house after ICICI and HDFC. Sharekhan offers full brokerage services. Zero account opening fee and lower brokerage rate are positive points about ShareKhan. Key Features of ShareKhan demat cum trading account are given below.
- Access to research and advice on all segments.
- Make unlimited calls for trading.
- 3-dedicated toll free numbers.
- Sharekhan Classroom facility for learning.
- Advance tool with screening facility.
Account Opening Fes – Zero
Brokerage – 0.50% for delivery
AMC – Rs.400
Make sure to select demat and trading account based on your requirement and feature services offered by stock broker. If you are trader or DIY investor you should go for discount broker such as Zerodha, Upstox or 5Paisa. If you are long term investor and need help from stock market expert you should go for full service broker such as ICICI Direct, HDFC Securities, Sharekhan etc.