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Just like a savings account is used to hold funds, a Demat account is used to store shares and securities.
For those who want to trade in stores, having a Demat account is a prerequisite as it makes share trading fast and simple. Additionally, it also wipes out all the risks and issues associated with physical share certificates.
A Demat account is also often termed as a Dematerialized account. In other terms, this account allows shareholders to covert or dematerialize their physical shares into electronic format.
With a Demat account, one can make a wide range of investments such as bonds, equity shares, government securities, mutual funds, and exchange traded funds. This account is either credited or debited each time one buys or sells the shares of a company.
Apart from being an intrinsic part of the stock trading industry, there are lots of benefits associated with a Demat account like:
• Easy and quick communication with investors
• Enables transparency
• Reduces paperwork
• Instant settlement and deliveries
• Eliminates associated risks on several fronts
• Encourages share trading volume and market participation
• Instills trust and builds confidence among investors
In simple words, the most common need of opening a Demat account is to make a wide range of
investment in equity shares, ETFs, bonds, debt securities, mutual funds, and government securities among others. In a country like India, opening a Demat account is necessary for a person who wants to invest in stocks and shares.
There are basically three types of Demat accounts in India. Given your residential status, you can open a specific type of account for trading.
Regular Demat accounts:
These are dematerialised accounts meant for residents of India. If you live in India and primarily deals in equity trading and investment, you should open a regular Demat account.
Repatriable Demat accounts:
As its name implies, a repatriable account enables account holders to transfer funds abroad if they’re an NRI. This type of account must be connected to a Non-resident External (NRE) bank account to enable the repatriation of funds.
Non-repatriable Demat accounts:
Opening a non-repatriable account is also possible for a Non-resident Indian. However, he won’t be able to transfer funds abroad. It must be linked to a Non-resident Ordinary (NRO) bank account.
Other Demat account types are:
• Joint Demat account: A max of three individuals can open this type of Demat account jointly.
• Corporate Demat account: A business firm or any commercial establishment can open this type of Demat account in its name. All accrued profits get credited to the firm’s authorised banking account.
How to open a Demat account online
Looking to open a Demat account? Here are the best performing Demat accounts in India.
Being the oldest and most trusted discount broker, Zerodha holds a special place in the hearts of its over 3 million investors today. As there is no minimum limit on brokerage charges, it is immensely popular among small investors.
Their brokerage rate is 0.01% or Rs 20 per executed order whichever falls lower. Even if you want to trade high-scale, you would have to pay just Rs. 20 per trade. According to stock investment experts, it allows investors to save up to 90% in comparison to other full-service brokers.
Last but not the least, their customer support is far better than its counterparts. As their primary business comes from derivatives, they have eliminated delivery brokerage to gain more customers. Zerodha offers zero brokerage Demat account for all investments.
Their account opening and AMC charges are given below:
• Trading Account Opening Charges – Rs 0
• Demat Account Opening Charges – Rs 300
• Trading Account Maintenance Charges (AMC) – Rs 0
• Demat Account Maintenance Charges (AMC) – Rs 300 per year
Another leading name in the discount broking space is Upstox which was earlier known as RKSV
Securities. Based out of Mumbai, their brokerage structure is very much similar to that of Zerodha. They also feature zero brokerage for delivery trades and Rs. 20 per trade for every order. You don’t need to pay a single penny for opening a Demat account with them.
Their account opening and AMC charges are given below:
• Trading Account Opening Charges – Rs 0
• Demat Account Opening Charges – Rs 0
• Trading Account Maintenance Charges (AMC) – Rs 0
• Demat Account Maintenance Charges (AMC) – Rs.0 for the first year and Rs. 150 from second
year onwards
Based out of Mumbai, TradeSmartOnline is also considered a leading player in the industry. Supported by VNS Financial Services Ltd, the firm made its foray in the brokerage space in the year 1994. The discount broking firm has two different plans – Flat fee plan and percentage based plan.
Their account opening and AMC charges are given below:
• Trading Account Opening Charges – Rs 200
• Demat Account Opening Charges – Rs 200
• Trading Account Maintenance Charges (AMC) – Rs 0
• Demat Account Maintenance Charges (AMC) – Rs.0 for the first year and Rs. 300 from second year onwards
Quite a popular name in the stockbroking industry, Sharekhan was set up in 2000. However, it was acquired by BNP Paribas later.
They have a trading platform names “Trade Tiger” which is termed as one of the most efficient trading platforms in India. They charge a minimum brokerage of 10 paise per share.
Their account opening and AMC charges are given below:
• Trading Account Opening Charges – Rs 0
• Demat Account Opening Charges – Rs 0
• Trading Account Maintenance Charges (AMC) – Rs 0
• Demat Account Maintenance Charges (AMC) – Rs.0 for the first year and Rs. 400 from second
year onwards
Being one of the largest broking houses in India, Angel Broking has been in the industry since 1987. The Angel Group is also an official member of the Bombay Stock Exchange, National Stock Exchange, and two commodity exchanges- the NCDEX and MCX.
Angel Broking has a flat rate plan known as Angel i-Trade Prime which carries Rs.20 flat brokerage per order for all categories except Equity Delivery. Equity Delivery Trading is totally Free. Their account opening charges are o. however,
They have Account Maintenance Charges (AMC) for their different brokerage plans.
• Angel Classic – Rs 450/year
• Angel Preferred – Rs. 0 for the first year and 450 per year from next year onwards
• Angel Premier – Rs. 0 for first two years and 450 per year from third year onwards
• Angel Elite – Rs. 0 for first three years and 450 per year from fourth year onwards
OPEN A ZEROBROKERAGES DEMAT AC
A trading account is primarily used to buy or sell orders in the stock market whereas a Demat account is used to dematerialise shares into electronic formats instead of physical certificates.
It is necessary to note that there is always an option to link your Demat and trading account with each other which helps in easy trading of shares.
If you’re looking to open a Demat account with any of the service providers in India, Zerobrokerages can be your most sought-after partner in that direction. Backed by immense domain expertise and unmatched industry exposure, we enable easy, quick, and effective Demat account opening.
We provide FREE Demat account opening with Upstox, Fyers, Stoxkart & TradeSmartOnline, and charge Rs. 200 for Zerodha. Moreover, we also provide an account opening service with a Forex brokers.
