Which Demat Account is best in India and Why?

4 min read
Which Demat Account is best in India and Why?

What is Demat Account ?

For investing your money in the stock market, You need a Demat account number to settle trades electronically. Having a Demat Account allows you to buy shares and store them safely. It is similar to a bank account in which you hold deposits with the bank and the record of debit/credit balances are maintained in a bank passbook. In the same way, when you purchase or sell shares, it will be credited or debited to/from your Demat Account respectively. It can be used to hold a variety of investments like equity shares, exchange-traded funds, mutual funds, bonds, and government securities. You can open a Demat Account without possessing any shares. and can maintain a zero balance in your account.

Stockbrokers can directly buy & sell stocks in the share market on behalf of their clients and charge a small commission for this service. However, the commission is minimal compared to the fast trading platform that they offer.

From big banking corporations like HDFC Securities, ICICI Direct, Kotak securities, etc, to traditional brokers like Motilal Oswal, Sharekhan etc to newer fastly growing startups like Zerodha, 5Paisa, etc all are examples of stockbrokers in India.

Types of stockbrokers in India?

There are two basic types of stockbrokers in India: Full-service brokers (Traditional Broker) & Discount brokers (Budget brokers).

A) Full-service brokers:

A full-service broker is a licensed financial broker-dealer firm that provides a large variety of services to its clients, including research and advice, retirement planning, tax tips, and much more. They also facilitate investing in Forex, Mutual Funds, IPOs, FDs, Bonds, and Insurance.

Example: ICICI Direct, HDFC Securities, Kotak Securities, Sharekhan, Motilal Oswal, etc.

B) Discount brokers:

A discount brokerage is a business that allows clients to buy and sell securities but does not provide advice, research, planning or other investment services. Clients who use discount brokerages usually have little to no interaction with a real broker. As a result, discount brokerages charge lower fees.

These brokers just provide the trading facility to their clients for stocks, commodities and currency derivatives. They do not offer advisory services. However, these stockbrokers can save you a lot of brokerages while trading in stocks. Here, you need to pay a flat brokerage charge on the executed trades.

A few top discount stockbrokers in India are Zerodha, Upstox, 5Paisa, Trade Smart Online, etc

Factors to check while selecting your stockbroker?

  • Stock Broker’s Background
  • Minimum Account Balance Requirement
  • Broker Type
  • Commission Cost
  • Trading Platform
  • Good Customer Support
  • User interface

Some popular stock brokers like Upstox (know more) recently got $25 million from Tiger Global to expand their services and customer base so,
trusting factor becomes easier to accept when any broker as a start-up gets the fund due to its mission and vision.


Besides, you need to look into their web and mobile trading platforms, advisory services (if you are looking for trading advice), customer service, complaint ratio and other perks offered by that stockbroker like research reports, trading/investing education, etc.

Best Demat Account to open

Ratan Tata-backed Upstox has the best demat account in India. (Know more)

10 Big reasons to choose Upstox over others 1. 0 Brokerage charges for all delivery trades (No hidden charges)

2. 100% paperless a/c opening using Aadhar.

3. Trade in Stock, F&O, Currencies & commodities.

4. Account activates in just 3 hours.

(After successful submission of all formalities, you can get your id and pass in 3 hours.)

5. Pay only ₹20 per order for Intraday.

6. 20X margins on Equity trades. 4X margins on Futures & Currencies. 1.33X margins on buying Options.

7. Place Buy/Sell orders & see order/position books directly from charts. 100+indicators to help you analyze the markets!

8. Interactive web interface and easy to use free mobile app.

9. Get a FREE stock after opening the account.

10. Advanced Options strategies Profit from advanced options strategies including Straddle, Strangle, Butterfly. Place orders using options strategies directly from Pro trading platforms.

Upstox gets $25 million from Tiger Global Nowadays they are offering benefits worth ₹28,000 for real.

Open your brokerage free Demat account here

Good News: For the next two days, Upstox is opening free demat account. Above all, Upstox is backed by world class investors including Mr. Ratan Tata.

Can I open multiple accounts?

Yes, you can open multiple accounts.

In fact, you can open as many trading accounts as you want with multiple stock brokers. If you wish, you can have one account with a discount broker and another with a full-service broker.



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