Investing in the stock market requires a Demat account, especially when a beginner. You need in-depth information about the Best Demat Account for Beginners in India. A Demat account is similar to a bank account in that it keeps your shares and securities in one place. The working is quite similar; when you buy shares, they are credited in your Demat account, and when you sell shares, they are debited from your Demat account.
Since everything is held electronically, there are no physical shares, providing to which you need a Demat account that will hold your securities at one place.’
Summing up, a Demat account is used to hold the securities in an electronic or dematerialized form. It is required to hold some securities like bonds and debentures. This article will cover the top 10 Best Demat account for beginners in India. If you are a beginner, you can read about the companies and choose accordingly.
Depository Participant- Everything you need to know
A depository participant or a DP is a mediator of the central depository, which holds the record for all the transactions made in the share market. The central depository included the NSDL and CDSL as the leading depositories of the share market. They appoint a DP, which can be a stockbroker, bank, or other non-bank finance company.
Why is Demat account required?
A Demat account is the first step to trading in the stock market. There are three accounts required to trade, i.e. Demat account, a trading account, and a linked bank account. A Demat account is different from a trading account the Demat account, and you hold the securities in one place. The data is secured in electronic form.
On the other hand, through a trading account, you execute the data, which will reflect in your Demat account. Demat account is important to trade in the stock exchange, i.e., stocks, commodities, and currency. Moreover, it is also a requirement to invest in IPOs, Bonds, and Mutual Funds. In short, a Demat account holds the securities stocks, bonds, mutual funds, etc., in electronic form.
What is the best Demat account for beginners?
Talking about beginners, they have two choices: opening a Demat account with a stockbroker or directly with a bank. With the bank, there is a convenience of three in one account. This account combines your bank account demat account and trading account, which helps make the process seamless. The process goes like when you buy securities, the amount to pay for them is debited from your bank account, and the shares are credited to your demat account; through the trading account, the trades are executed.
Similarly, you can open a Demat account with any of your desired stockbroking firms. You can open a Demat and trading account with the same stockbroker; you must pay a certain amount to the brokers.
Best Demat account for beginners in terms of transactions
As you begin with trading, you may not carry a large volume of transactions. For this, you have an option of basic services Demat account or BSDA, which helps cut the cost to some extent. This account was introduced by the Securities & Exchange Board of India (SEBI) to reduce the burden on small investors.
There are many features of a BSDA account. Some of them are:
AMC’s annual maintenance charges are lower in the BSDA account than the regular one.
There are no charges for the holding up to Rs 50,000 and Rs 200,000. You have to pay Rs. 100 if it goes over this.
The debt securities have no charge for holdings of up to Rs 100,000, and you have to pay Rs 100 for holdings of between Rs 100,001 and Rs 200,000. If the holding goes above this, your account will be subject to regular charges.
BSDA is way cheaper than the non BSDA account, for which you have to pay between Rs 500 and Rs 800 per year. So if you are not looking to invest on a large scale, you can opt for a BSDA account.
List of 10 Best Demat Account for Beginners in India
This list covers the best Demat account for beginners. If you are a beginner and looking for the options of the Demat account, then you can go through these stockbroking firms for the same.
| S.No | Broker Name |
| 1. | ICICI Direct |
| 2. | Sharekhan |
| 3. | Motilal Oswal (MOSL) |
| 4. | 5paisa |
| 5. | Zerodha |
| 6. | Upstox |
| 7. | Kotak Securities |
| 8. | SBI securities |
| 9. | HDFC Securities |
| 10. | Finvasia |
Insight of the companies
Here is the complete insight into the companies offering the best Demat account for beginners. You can go through each company and learn about them.
1. ICICI Direct
The first one on the list of best Demat accounts for beginners in India is ICICI Direct. It is one of the largest retail stock broking firms in India. The company is the subsidiary of the ICICI group offering services in online trading and investment services to over 50 lakh customers. It covers the stock market’s major benefits that include equity, commodity, and currency trading at BSE, NSE, and MCX. Moreover, the company also offers Mutual Fund & IPO services, Fixed deposits, Bond, NCDs, wealth products, Home Loans, Loans against Securities, etc.
They have a popular 3 in 1 account for its customers, including ICICI Bank Account, ICICI Trading Account, and ICICI Demat Account. This results in a seamless trading experience. Also, they have a variety of plans to offer to their customers, such as the Lifetime Prepaid Brokerage Plan, I-Secure Plan, ICICIdirect Prime Plan, and Neo Plan.
Here are the details of ICICIdirect Account Opening Charges and AMC
| Transaction | Charges |
| Account Opening Charges | Rs 0 (Free) |
| Demat Account Annual Maintenance Charges AMC | Rs 300 per year |
| Demat Debit Transaction Charges (Sell Orders) | Rs 20 per transaction |
| Call & Trade Charges | Rs 50 per order |
2. Sharekhan
The company started in February 2000 and is the 3rd largest stockbroker after ICICI Direct and HDFC Securities. One of the leading companies that provide the best Demat account for beginners. They are currently working through the online trading website Sharekhan.com. Moreover, they have their physical presence, i.e.1800 offices that are the franchises and branches in over 550 cities across India. The company has an International presence too in UAE and Oman.
The services offered are for customers, including individual investors and traders, corporate, institutional, and NRIs. They currently provide services in various segments like equity cash and derivatives on BSE and NSE commodities trading facilities on MCX and NCDEX. It also offers depository services (Demat account) and the option to invest in mutual funds and IPOs.
Here are the details of Sharekhan Account Opening Charges and AMC
| Transaction | Charges |
| Trading Account Opening Charges (One Time) | Rs 0 |
| Trading Annual maintenance charges (AMC) | Rs 0 |
| Demat Account Opening Charges (One Time) | Included in trading account opening charges |
| Demat Account Annual Maintenance Charges (AMC) | Rs 400 (Free for 1st year with a trading account.) |
3. Motilal Oswal (MOSL)
The company was Incorporated in 1987 as Motilal Oswal Securities Ltd. (MOSL). It is a Mumbai-based financial service firm that offers services in Equity, Commodity, Currency, and Derivatives. Moreover, they deal in other products like Mutual Funds, IPOs, Gold, Insurance, and Fixed Income products. It has a famous segment MOAMC discretionary Portfolio Management Service (PMS). The company has been widely recognized for its top Demat account in India.
The cline base is quite diversified that includes retail customers (including High Net worthy Individuals), mutual funds, foreign institutional investors, financial institutions, and corporate clients.
Currently, they have a network spread over 500+ cities and towns, and it comprises 2,200+ Business Locations operated by the company and its Business Partners. Moreover, they have over 10,00,000 registered customers with over Rs 69,500 Crores in depository assets.
Here are the details of Motilal Oswal (MOSL) Account Opening Charges and AMC
| Transaction | Charges |
| Trading Account Opening | Rs 1000 (One Time) |
| Trading Annual Maintenance (AMC) | Rs 0 |
| Demat Account Opening | Rs 0 |
| Demat Account Annual Maintenance (AMC) | Rs 299 |
4. 5paisa
5paisa is one of the leading names in the online stockbroking field. It is offering discount broking services to retail investors in India. The company is publicly traded, professionally managed, and promoted by IIFL founders. Currently, they have over 1.2 million clients.
Their services are in equity, commodity, and currency at BSE, NSE, and MCX; they are flat-rate discount stockbrokers. The brokerage charges are a flat 20 Rs brokerage irrespective of the trade, segment, or exchange size.
It has subscription plans such as Basic Pack, Power Investor Pack, and Ultra Trader Pack. The plans have benefits such as Zero Account opening charges to Flat Fees reduced from Rs 20 to Rs 10.
The Demat account services are offered through its depository participant membership with CDSL. Customers can trade through Mobile Trading App, Trading Website, and Installable Trading Terminal.
Here are the details of Motilal Oswal (MOSL) Account Opening Charges and AMC
| Service | Charges |
| Trading Account Opening Charges (One Time) | Rs 300 |
| Trading Annual maintenance charges (AMC) | Rs 0 |
| Demat Account Opening Charges (One Time) | Rs 0 |
| Demat Account Maintenance Charges (AMC) | Rs 540 yearly (charged as Rs 45 per traded month) |
5. Zerodha
Zerodha is the best stock broker in India with the title of largest and most popular broker offering online flat fee discount brokerage services. They deal in various segments such as Equity, Currency, Commodity, IPO, and Direct Mutual Funds.
It has some exciting brokerage plans, such as it charges Rs 0 brokerage for equity delivery trades and direct mutual funds. In the case of the intraday and F&O, it charges flat Rs 20 or 0.03% (whichever is lower) per trade. It is one of India’s most renowned providers of top Demat accounts.
It offers an excellent online trading platform that charges a low brokerage fee and is the most transparent stockbroker.
Here are the details of Zerodha Account Opening Charges and AMC
| Transaction | Charges |
| Trading & Demat Account Opening | Rs 200 |
| Trading Account AMC | Rs 0 |
| Demat Account AMC | Rs 300 per year |
6. Upstox
Upstox is one of the most renowned names in the stock broking industry. They are India’s tech-first low-cost broking firm that provides the trading at some unbeatable prices. It deals in different segments such as equities, commodities, currency, futures, and options. One can easily trade through their Upstox Pro Web and Upstox Pro Mobile trading platforms.
The company is managed by investors, including Kalaari Capital, Ratan Tata, and GVK Davix. Moreover, they offer trading, analysis, charting, and many more rich trading features. The trading platform is built on the Omnisys NEST OMS (Order Management System) and Omnisys NEST RMS (Risk Management System). Moreover, they are offering the best Demat account for beginners.
Customers interested in trading in the Equity F&O, Equity Indra-day, Commodities, and Currency Derivatives can do it through Upstox Pro. It is one of its paid services.
Here are the details of Upstox Account Opening Charges and AMC
| Transaction | Charges |
| Upstox Account Opening Charges | Rs 249 |
| Upstox Demat AMC | Rs 0 |
7. Kotak Securities
The company is the subsidiary of the Kotak Mahindra Bank. It was founded in 1994, providing stockbroking services and distributing financial products in India. Currently, they have 1209 branches, franchisees, and satellite offices that offer assistance to 11.95 Lakh customers. Moreover, they are the leading Bombay Stock Exchange and the National Stock Exchange members. Also, they are the top participants of National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
The company that offers Kotak securities offers a three-in-one account, i.e. is to open Demat, trading, and a bank account together with Kotak Mahindra Bank Limited. The accounts help in the seamless transaction, and the required funds get credited automatically. So it’s easy to manage. The company offers services in Equity, IPO, Mutual Fund, ETF, Tax-free bonds, Currency Derivatives, Gold ETF, etc.
Here are the details of Kotak Securities Account Opening Charges and AMC
| Transaction | Charges |
| Trading Account Opening Charges (One Time) | Rs 0 |
| Trading Annual maintenance charges (AMC) | Rs 0 |
| Demat Account Opening Charges (One Time) | Rs 0 |
| Demat Account Opening Charges (One Time) | Rs 600 per annum |
8. SBI securities
SBICAP Securities Ltd (SSL) is another leading stockbroking firm, a subsidiary of State Bank Group and SBI iCapital Markets Ltd. It is a full-time service broker that was founded in the year 2006. It offers services in Equity, Retail Equity, Derivatives, Broking, Depository Services, and Third-Party Distribution products. Also, they provide online trading services to investors & traders.
Moreover, they have the company’s flagship trading platform that allows Resident Indians and Non-Resident Indians (NRIs) to invest online. They can easily invest in Equity, Derivatives, Mutual Funds, ETFs, IPOs, and NCDs. Moreover, the company is a provider of the demat account for beginners. They also deal in Home Loans, Car Loans, and Loan Against Securities (LAS). Also, they are registered with the Securities Exchange Board of India and a Depository Participant with NSDL & CDSL.
Here are the details of SBI securities Account Opening Charges and AMC
| Transaction | Charges |
| 3-in-1 Account Opening Charges | Rs 850 |
| Annual Maintenance Charges (AMC) | Rs 500 |
9. HDFC Securities
HDFC Securities(HDFCsec) is another leading stock broker that provides demat accounts for beginners. It is an Equity Trading Company and a subsidiary of HDFC Bank. The company provides both online trading and trading on the phone. Moreover, the company offers the 3 in 1 account, making the transaction seamless. This account includes the HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. The company provides services in Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment.
Here are the details of HDFC securities Account Opening Charges
| Transaction | Charges |
| 3-in-1 Account Opening Charges | Rs 999 |
10. Finvasia
Finvasia is another leading firm providing the best Demat account for beginners. It is an Indian based technology-driven financial service provider. The company offers a wide range of financial services in India and 14 other countries. The key services they offer are trading in equity, currency and commodity, asset management, investment banking, advisory, and currency hedging. Moreover, the company entertains retail, institutional and foreign customers.
The company is based in Chandigarh, and they have offered stock broking services in India since August 2016. Moreover, they are members of BSE, NSE, and MCX.
| Transaction | Charges |
| Finvasia Trading Account Opening Charges | Rs 0 |
| Demat account Opening Fee: | Rs 0 (Rs 199 for Power of Attorney) |
| Trading Account AMC | Rs 0 (Free) |
| Demat Account AMC | Rs 0 per year (Rs 1000 for corporate clients) |
Conclusion
In conclusion, this article concludes the top 10 best Demat accounts in India for beginners. Many new investors and traders are interested in investing and want the best suggestions for the demat account, and this article covers the best Demat account for beginners. If you are interested in opening a demat account, you can contact a broker or a sub-broker. For more information about the demat account, you can read “A Guide to Open Demat Account in India”.
