Best Demat and Trading Account in India 2023
Willing to begin your investment journey in the breathtaking world of the stock market? This post will help you take the first step to selecting the best Demat and trading account in India for investment. Let’s begin.
Demat and trading account in India: Definition
A Demat account is an account in which your securities & stocks are stored electronically. It is mandatory in India to store your stocks in the best Demat account only. A trading account is an account through which you can buy and sell stocks in Indian stock exchanges. The purchased stocks are stored in your Demat account.
Importance of the Demat and Trading Account in India
- A Demat account allows you to store an extensive range of financial instruments like ETFs, mutual funds, equity shares, and government securities.
- A Demat account allows you to perform multiple activities, such as trading and investing.
- A trading account is a bridge between your Demat and your bank account, which enables you to do stock market trading.
- A trading account also lets you access NCDEX, NSE, MCX, and BSE.
Low Brokerage Demat and Trading Account in India 2023:
A low brokerage and high exposure Demat and trading account are for the ones who trade very often. Frequent traders have brokerage charges as one of their primary concerns. Not choosing the brokers wisely, will lead to fewer profits as all of their investment will go into the brokerage fee. Therefore, a discount broker is an ideal choice for them through which they can save up to 90% of the brokerage compared to full-service stockbrokers.
Discount brokers allow their customers to trade at the lowest brokerage charges. Undoubtedly, they offer excellent Demat and trading accounts, trading platforms, and customer care, but do not provide financial guidance. Wisdom Capital, Upstox, and Zerodha, are some of the well-reputed discount brokers that offer the best Demat and trading account in India. On the other front, ICICI Direct, Motilal Oswal, and Sharekhan are a few well-known full-service stockbrokers.
Benefits of Discount Brokers like Wisdom Capital/Upstox over Full-service Stock Brokers
For Investor
For example, you invest INR 20 Lakhs. With 0.55% brokerage of ICICI Direct, you have to take out INR 11,000 as the brokerage charges whereas you pay nil in case of choosing the best Demat and trading account in India with discount brokers, such as Wisdom Capital, Zerodha. Hence, you will be able to save 100% brokerage compared to full-service stockbrokers like ShareKhan, ICICI Direct.
For Trader
For example, you, as a trader, invest INR 20 Lakhs and sell INR 20 Lakhs worth of stocks on the daily basis. That means the transaction amount will be INR 800 Lakhs in around 20 trading days. Full-service stockbrokers like ICICI Direct will charge 0.0275% of the transaction amount, i.e., INR 22000 (0.0275 * INR 800 Lakhs) per month, and hence, INR 2,64,000 annually.
On the other front, with the best demat and trading account in India with discount brokers, such as Wisdom Capital, Upstox, the brokerage charges do not rely on the trade value. For each order, they will charge INR 20 irrespective of the transaction volume. Hence, it would be INR 40 per day (INR 20 for buy and sell each), 20 * INR 40, i.e. INR 800 per month, and 12 * INR 800, i.e. INR 9,600 per year. Hence, traders can save over 90% of brokerage charges and add that amount to their profits when they opt for a demat and trading account with discount brokers.
Top 5 Demat and Trading Accounts in India by Top Discount Brokers
1. Wisdom Capital
Wisdom Capital is one of the leading online stock brokers and first movers in a discount brokerage that offer the best demat and trading account in India. It offers one of the most incredible & affordable plans for traders and investors. Under its freedom plan (one-time fee of INR 999 for opening a demat and trading account), there is zero brokerage. It additionally offers automated online investments & trade execution (broker-assisted) in all NSE/BSE stocks. They offer useful tools like charting, live data, etc., either at no cost or at a minimal fee for making sound decisions and substantial profits. Besides an excellent demat and trading account, It also allows an investor to trade in almost all Agri and non-Agri metals, commodities, seamlessly.
Wisdom Capital Demat and Trading Account Brokerage Fees:
Equity
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- Delivery: 5 Paisa or 0.05%
- Intraday: 1 Paisa or 0.1%
- Futures: INR 9 per order
- Options: INR 9 per order
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- Currency Futures/Options: INR 9 per order
- Commodity Futures: INR 9 per order
Features
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- Zero commission in all segments
- Excellent Trading Platform (free to use)
- Demat Account Maintenance Charges: INR 999 + taxes (lifetime)
- INR 20 for Call & Trade
- Incredible Customer Support
- Decent margin under Freedom Plan (zero brokerage charges)
- Highest margin up to 60X in intraday, with the brokerage as low as 0.007%
- Trade Eye: User-friendly mobile trading app
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Account Opening Charges
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- Opening Charges for Trading Account (One Time): Zero
- Trading Annual Maintenance Charges for Trading Account: Zero
- Opening Charges for Demat Account (One Time): Zero
- Annual Maintenance Charges for Demat Account: INR 999 (Lifetime)
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2. Upstox
Upstox, previously known as RKSV Securities, is another leading discount broker headquartered in Mumbai. They also charge zero brokerage charges for delivery trades and INR 20 per trade for an executed trade order, and there are no charges for opening a Demat and trading account.
Upstox Demat and Trading Account Brokerage Fees:
- Equity
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- Intraday: 0.05% or INR 20 per order (whichever is least)
- Delivery: Zero
- Futures: 0.05% or INR 20 per order (whichever is least)
- Options: INR 20 per executed trade order
- Currency Futures/Options: 0.05% or INR 20 per order (whichever is least)
- Commodities: 0.05% or INR 20 per order (whichever is least)
Account Opening and AMC
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- Trading Account Opening Charges: Free
- Demat Account Opening Charges: Free
- Trading Account Maintenance Charges: INR 0
- Demat AMC: Zero (for the first year) and INR 150 (second year onwards)
Advantages
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- Zero commission charges on delivery trades
- Free account opening (Demat) and lower AMC
- INR 20 (maximum) per trade for non-delivery trades
- Upstox Pro (Flawless Trading Platform)
Disadvantages
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- Chargeable Call & trade facility
- 3-in-1 Demat account only if you have savings account with IndusInd Bank
3. Zerodha
Zerodha is another one of India’s biggest stockbrokers that offer Demat and trading accounts and has built its rapport over time. They do not charge any brokerage fees for delivery trading. However, for intraday & derivatives, they charge INR 20 per transaction. Derivatives are their primary income source and hence they do not charge brokerage for delivery so that they can draw more audience. However, they do not offer monthly unlimited plans, which is a major disadvantage for most people.
Zerodha Demat and Trading Account Brokerage Fees
- Equity
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- Intraday: 0.03% or INR 20 per order (whichever is least)
- Delivery: Zero
- Futures: 0.03% or INR 20 per order (whichever is least)
- Options: INR 20 per order
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- Currency Futures/Options: 0.03% or INR 20 per order (whichever is least)
- Commodities: 0.03% or INR 20 per order (whichever is least)
Advantages:
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- Free delivery based trades and INR 20 (maximum) per trade in other segments
- One of the first movers in discount brokerage
- Provides stock education to investors through Zerodha Varsity (an open platform)
- Zerodha Kite (Great trading platform)
- Coin: a platform for direct mutual fund investment
Disadvantages:
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- INR 20 for Call and trade
- 3-in-1 Demat account (provided you have savings account with IDFC First bank)
Opening a Demat and trading account with Zerodha is an entirely online process, i.e. 100% paperless provided your mobile number is linked with your Aadhar.
Account Opening Charges
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- Online through Aadhaar: INR 200
- Offline by submitting forms: INR 400
4. 5Paisa
5Paisa is a discount broker that offers flat-fee brokerage plans along with free suggestions & research data to their clients. Its parent company is India Infoline (IIFL), one of India’s reputed full-service stockbrokers.
5Paisa Demat and Trading Account Brokerage Fees
Optimum Plan
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- Plan Charges: Zero
- Equity
- Delivery: INR 20 per transaction
- Intraday: INR 20 per transaction
- Futures: INR 20 per transaction
- Options: INR 20 per transaction
- Currency Futures/Options: INR 20 per transaction
Platinum Plan
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- Plan Charges: INR 499/month
- Equity
- Delivery: INR 10 per transaction
- Intraday: INR 10 per transaction
- Futures: INR 10 per transaction
- Options: INR 2 per transaction
- Currency Futures/Options: INR 10 per transaction
Titanium Plan
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- Plan Charges: INR 999/month
- Equity
- Delivery: Free
- Intraday: INR 10 per transaction
- Futures: INR 10 per transaction
- Options: INR 2 per lot
- Currency Futures/Options: INR 10 per transaction
Advantages
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- A reputed parent company, IIFL (India Infoline Limited)
- Offers research data and tips (rare with discount brokers)
- Allows IPOs, insurance, and mutual fund investments
- Zero account opening charges
Disadvantages
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- No fixed per month brokerage plans
- Robotic recommendations
5. Trade Smart Online
Another leading discount broker in India is Trade Smart Online and is headquartered in Mumbai. Their parent company is VNS Financial Services Ltd. (full-service broker) that has been serving the brokerage industry for more than 25 years. They offer trading services in commodity, currency, and equity segments.
Demat and Trading Account Brokerage Fees:
Power Plan
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- Equity
- Intraday/Delivery/Futures: INR 15 per order or 0.01% (whichever is least)
- Options: INR 15 per order
- Commodities, Currency Futures/Options: INR 15 per order or 0.01% (whichever is least)
- Equity
Value Plan
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- Equity
- Intraday: 0.007% per transaction
- Delivery: 0.07% per transaction
- Futures: 0.007% per transaction
- Options: INR 7 per lot
- Currency
- Futures: 0.007% per transaction
- Options: INR 7 per lot
- Commodities: 0.007% per transaction
- Equity
Account Opening and AMC
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- Demat and Trading Account Opening Charges (One time): INR 200 for both
- Trading AMC: INR 0
- Demat AMC (Account Maintenance Charges): Zero (for the first year) and INR 300 (second year onwards)
Advantages
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- Multiple trading plans
- Algo trading (through NEST platform)
- No minimum balance & low brokerage charges
- Free Brokerage & Span Margin Calculator
Disadvantages
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- No suggestions/tips
- No assistance for IPO/Mutual funds
Best Demat and Trading Account in India: FAQs
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What do you mean by stockbrokers?
best Stock broker in India are organizations/individuals registered in the stock exchange, participate in the stock market on behalf of their customers, and offer the best Demat and trading account in India. From big firms like Kotak Securities, ICICI Direct, HDFC Securities, etc. to the new & rapidly emerging brokers like Wisdom Capital, Upstox, Zerodha, etc., are some of India’s leading stock brokers that offer the best Demat and trading account in India.
Discount brokers in India buy & sell stocks on behalf of their clients directly and charge a small brokerage fee for the same. However, in comparison with the best Demat and trading accounts in India, fast trading tools & platforms they provide, the brokerage fees are quite less. Using these trading platforms on either mobile or web, traders can buy or sell shares.
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Do I need a stockbroker to trade in stocks?
Indeed, you require the best Demat and trading account in India with a stockbroker to trade in the Indian stock exchange. There are several processes involved in the stock exchange for an excellent trading experience. And here, besides the stock exchanges and regulators, stockbrokers play a crucial role.
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What factors to check while selecting a stockbroker for the best Demat and trading account in India?
One must consider brokerage charges as an important factor while selecting a broker for opening the best Demat and trading account in India, as overpriced stockbroker can cause you some financial woes.
Moreover, the second most crucial factor involved while choosing a Demat and trading account is to check the stockbroker’s reputation. A stockbroker with a long track record of providing reliable trading tools and excellent customer care should be preferred. Additionally, while opting for the best Demat and trading account in India, you should also check their mobile & web trading platforms, advisory services, and other add-on benefits offered, such as trading guidance, research reports, analysis, etc.
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With which stock broker can I open the best demat and trading account in India?
Opening a Demat and Trading account with full-service brokers like ICICI Direct, HDFC Securities, or any other reputed firm is a wise decision for investing in commodities, fixed deposits, mutual funds, currencies, shares, bonds, etc.
However, if you are just willing to trade in stocks or commodities, getting the best demat and trading account in India opened with discount brokers is more beneficial. It is so because these brokers offer a faster trading platform with low brokerage charges that helps traders save several bucks. A few reputed discount stock brokers in India are Wisdom Capital, Zerodha, Upstox, 5Paisa, Angel Broking, etc.
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What are the steps involved in the process of opening a Demat and trading account?
Opening the best demat and trading account in India is an entirely online process, i.e., hassle-free & paperless. It hardly takes an hour to open your demat and trading account provided you have the soft copies of your documents, such as Aadhar Card, PAN card, and passbook/check-book of savings account on your laptop or mobile. All it takes is to visit the stockbroker’s website and apply for the best demat and trading account in India.
Wrap Up: Best Demat and Trading Account in India
There is no single demat and trading account that can be said as best for everyone as each trader has different preferences, some are a novice, while some are experienced. So which stockbroker should be considered for the best demat and trading account in India? The answer is Wisdom Capital, as it provides an incredible trading platform, zero brokerage and unlimited trading (freedom plan), and round-the-clock customer service.
The aspect of technology also plays a crucial role while selecting a broker for the best demat and trading account in India. Therefore, it is essential to grasp adequate data about the most advanced technologies used in the stock market. An excellent technology will provide you with real-time information on the margin money, relevant stocks, financial records, the price of the portfolio, etc. Additionally, it might offer an advantage of instant analysis of the firm that you select for trading/investment.
Before choosing the best demat and trading account in India, you must conduct extensive study and analysis. Additionally, remember to compare the brokerage fees listed here with the appropriate stockbrokers. Please let us know in the comments area if you believe the information listed above needs to be updated.
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