Check out these best demat account options for small investors
You must understand the significance of a demat account if you intend to engage in the Indian stock market. Trading stocks requires the possession of a demat account. Anyone wishing to purchase, sell, or hold shares in electronic format must have it.
When choosing a demat account, novice investors should use common sense; if not, they should be prepared to pay hefty fees and charges for each trade. There are additional fees associated with creating and keeping a demat account.
When opening a demat account, you can select from a number of profitable characteristics, such as affordable brokerage broking firms, firms that charge no account opening fees, or low Annual Maintenance Charges (AMC).
One factor to consider when selecting a stock broker for market trading is customer assistance. The top demat account choices that are excellent for novice small investors are listed below:
Angel One
Angel One maintains an extensive presence across India with 110 branches, 11,000 trading terminals, and over 18,000 authorised persons spanning 1800+ cities as of 2022. They boast more than one crore registered users who download their app regularly – providing one platform where you can trade all types of securities!
Angel One recently revamped its brokerage plans in response to discount stock brokers like Zerodha. Under its flat rate brokerage plan ‘Angel iTrade PRIME, Angel One now provides intraday, F&O, Currencies, and commodity trading at Rs 20 per trade except Equity Delivery which remains free for users; all exchanges & segments use one simple rate that applies across them all.
- Full-service brokerage services are available at ultra-low brokerage fees.
- Flat fee stock broker charging Rs 20 per order across segments and exchanges. Brokerage free equity delivery trades.
- Training and hand-holding are available for beginners.
- Margin trading facility and securities as collateral are available.
- Do not charge for NEFT/fund transfers. (Others charge ~Rs 10 per).
- Only charge Rs 20 for intraday square-off and call & trade (others charge Rs 50).
- Free advisory/tips for stocks and mutual funds (Others do not).
Angel One is well known for its superior trading software and investment advisory. Angel is also a highly-respected full service broker offering discounted brokerage rates to their customers.
Zerodha
It is regarded as the industry leader in discount brokerage. But by employing technology that is focused on results, the business has achieved a new height.
Among the high volume, fastest-growing contributors, Zerodha has an average daily trading turnover of more than INR 10,000 crores. The company now provides dealers and equity investors with the ability to instantaneously register a demat account with their Aadhaar card.
- Equity delivery transactions are offered free of charge on both the NSE and the BSE.
- The charge for intraday equity and equity futures is 0.01% or Rs. 20 per trading transaction, whichever is less.
- For equity options, a flat fee of Rs. 20 is levied each executed order.
- The one-time fee for opening a demat account is Rs 100.
- The annual maintenance charges (AMC) for a demat account are Rs 300 per year.
Furthermore, there will be STT or CTT costs that vary depending on the transaction, such as 0.1% on buy and sell for equity delivery, 0.025% on sale for equity intraday, 0.01% on sell for equity futures, and 0.05% on sell for equity options trading.
Furthermore, GST charges of 18% are levied on brokerage and transaction fees.
Upstox
Upstox, formerly known as RKSV, is backed by top worldwide investors and is regarded as one of India’s largest low-cost brokerage firms, serving thousands of customers across the country.
There are no fees or commissions for stock investments, and there is no brokerage. However, you should be prepared to pay a brokerage of as little as 0.01% or up to Rs 20 per traded order (whichever is lesser) for intraday, F&O, commodity, and currency trading, regardless of volume.
- Demat account opening fees are Rs. 150 for NSE, BSE, and MCX.
- Annual Maintenance Charges (AMC) for demat accounts are Rs. 150, but not for trading accounts.
Aside from that, there is an additional charge of INR 100 for processing account opening forms that are forwarded to the firm’s mailing address. When you open a demat account with Upstox, your trading account is created instantly after you select the segments in which you wish to trade.
ICICI Direct Demat Account
ICICI Direct is one of India’s biggest financial services organizations, offering a variety of services including stock trading.
The ICICI 3 in 1 Demat account is an option. Clients are not required to open separate accounts for trading and money management. The key advantage of an ICICI Direct demat account for new small investors or beginners is that it eliminates the customary trouble of transferring funds between trading and bank accounts.
The brokerage charges of the corporation comprise everything, as well as the DP charges of Rs. 25 or 0.04% (whichever is greater) when shares are sold or deducted from the demat account. Other costs, such as CDSL and NSDL, as well as other statutory charges, are levied in a piecemeal fashion.
- Demat account opening charges- 0
- Demat account AMC- 0
- Trading account opening charges- 0
- Trading account AMC- Rs. 700
Alice Blue
Alice Blue was established in Bangalore as a discount stockbroker in 2006, offering both stock and commodity trading services at BSE, NSE, and MCX exchanges. Alice Blue is also certified with CDSL to offer a depository account (demat account).
AliceBlue provides one simple brokerage plan called Freedom 15 (F15), designed to reduce brokerage fees so customers incur as few costs when trading. As this discount brokerage plan offers equity delivery trades without incurring brokerage costs; customers incur no brokerage fee on them either! For all other segments Alice Blue charges flat Rs 15 per executed order or 0.01% (whichever is lesser).
- Equity Delivery Trading in Freedom (15) plan is free; only pay up to Rs 15 when trading other segments.
- No Minimum Brokerage Fee. No Commitment Requirement and no Prepaid Plans Available.
- Alice Blue Financial Services have provided brokerage services since 2006.
- Omnesys NEST PLUS Trading Platform serves as the backend for ANT. NEST provides powerful Risk and Order Management System features used by over 200 top brokers in India.
- ANT Trading Software is available free-of-charge to its customers.
- Customers may choose from an extensive variety of Advance Order types including Bracket Orders and Cover Orders to meet their ordering needs.
Discount broker Alice Blue provides its customers access to proprietary and third party trading tools online in order to facilitate deeper analysis of trades, making more informed trading decisions, and access to paid tools/apps via its ‘Trade Store.’ Key tools available through Trade School also can help with investing concepts/trading skills development.
Samco
SAMCO Securities is one of India’s premier investment technology companies, offering an array of securities for trading and investment such as stocks, Equity Derivatives, Currency Derivatives, Commodities Mutual Funds IPO.
SAMCO Group was established in 2015, renowned for their ultra-low brokerage fees, exclusive margin products, and free trading software. SAMCO also features StockBasket: an expert-selected basket of stocks chosen based on 25+ stock rating parameters; Mr Jimeet Modi of Samco Group founded this company.
- At BSE, NSE, NCDEX and MCX brokerage is only Rs 20 for every trade executed across all segments.
- Excellent margin products are now available to traders.
- Instant paperless account opening. Free.
- First year Demat AMC free, thereafter Rs 400 annually
- 100% cashback on brokerage fees in the first month!
- Research, Recommendations, Charts, News & Insights are provided herein for your consideration and purchase decision making purposes.
- Add-on products, such as StockBasket, KyaTrade and RankMF are readily available.
SAMCO provides innovative and secure trading platforms to trade across a variety of products via web, mobile and desktop software. SAMCO maintains a Stock Market library as well as informative blogs about capital market basics, market insights and tax management that create investor awareness to make more informed investment decisions.
5paisa
5paisa.com is India’s premier online stockbroker providing discount brokerage services at competitive rates to retail investors in India. 5paisa Capital Ltd, formed under IIFL founders’ direction and operated as an independently traded public limited company since October 2017, boasts more than one million clientele as of March 2021.
5paisa online trading provides equity, commodity and currency trading at BSE, NSE and MCX exchanges at competitive flat rate discounts – charging only 20 Rs in brokerage regardless of size, segment or exchange of trade.
- Flat Rs 20 Rs/order regardless of trade volume or segment/exchange affiliation.
- One account to invest in stocks, mutual funds, commodities, currency research and advisory.
- Account opening in five minutes should be FREE and paperless!
- Lower Direct Perpetration Fees; Free Mutual Fund Account
- Multilingual Trading App and Website. No Software fees charged!
- Customers may benefit from free technical, derivative and fundamental research and advice without additional charges.
5paisa’s trading platform comprises Mobile Trading App, Trading Website and Installable Trading Terminal, all built using cutting edge technologies for optimal use of mobile technology in financial services.
