If you are new to the trading and stock broking business, it is extremely important for you to make sure you approach a broker that gives you the best possible deal, not only in terms of service, but also costs. So, you should check brokers that offer you a free demat and trading account.
What to look for in Free demat account, free trading account?
It does not mean that just because there is a free demat and trading acccount, you could get the best of service. Most of the low cost brokerages do not offer even send you a physical contract. So, you need to be careful on the service part. Also ask them for the annual maintenance charges. We have tried to mine out the latest data, however, it is highly possible that data gets outdated. You need to check with the broker, before you open your account. Here are a list of brokers that offer you a free demat and trading account.
Geojit Financial Services
Geojit Financial Services backs you with good equity research. Earlier, the firm was names as Geojit BNP Paribas. However, BNP Paribas also picked a stake in Sharekhan. The firm offers free trading account, free demat account and nil maintenance charges. In the cash market the firm charges a delivery based transaction of 0.3 per cent, while the intra day charges are 0.03 per cent in the cash segment. In the futures segment too the charges are 0.03 per cent.
This brokerage form offers free demat account but, the interesting this is the brokerage being offered by this firm. In fact, 5 paisa.com offers a brokerage of only Rs 10 flat per trade. So, irrespective of how much value of trade you do the charges would be just Rs 10 per trade. You can undertake trades from the desktop, web and mobile platforms. You would have a single account for all your investments. Interestingly, you can trade across all platforms including equities, futures and options as well as currency. Trading account can be opened without any paper work provided you have your Aadhaar Card. Not a bad deal at all, though you would need to familiarize yourself with the trading platform.
Sharekhan offers a range of plans and also a free demat and trading account. The services of the firm are excellent and it also has one of the largest branch networks in the country. If you trade in high volumes the firm may also offer some discount to you in terms of broking and other charges. This is a pretty old broking firm and there have been some changes in the management of the firm in the past. In the options and futures segment Sharekhan charges a brokerage in three legs that include 0.10%, 0.02% or 0.10%. You can visit the brokers website to check what these legs and the brokerage is.
Sushil finance also offers free trading and demat account. The company also offers research facilities for clients to back them-up with the right purchase decision. The firm also helps one to execute a three in one order screen for buying and selling in BSE/NSE cash and derivatives segment of the capital markets. Brokerage rates are flexible and would be based on the volumes that have been executed. The brokerage charges unlike Geojit is not fixed and is rather flexible. Probably, higher the value of the trade, lower will be the brokerage charges.
Motilal Oswal Demat Account
Motilal Oswal Financial Services is one of the reputed brokers in the country which caters to a large invsetor base. It provides a diversse number of services such as retail broking, institutional broking, asset management, private wealth management and distribution, investment banking, private equity, commodity broking, currency broking, principal strategies & home finance.
Presently Motilal Oswal Financial Services has more than 1700 business locations with over 7.5 lakh registered customers. Motilal Oswal' guides its clients through research-based advice which is one reason for such a high customer base. It spends Around 10% revenue on research and hiring & training for research.
For Demat Account Opening Charges, Motilal Oswal currrently offers Zero fee and trading Account Opening Charges Zero, and Annual Maintenance Charges is Rs 450. The main advantages of Motilal Oswal is the Award-winning research advise, which covers around 95% of market capitalization. It gives free brokerage for the first month.
Angel broking also a top-notch broking firm in the country offers a lifetime free demat account. The stock brokerage charges and the services are also very competitive. The digital KYC is sufficient and you need not have any documentation. The firm promises that you would be able to trade in one hour flat. If you undertake online transactions there is a discount of 20 per cent on brokerage.
Religare is offering free demat account. There maybe other terms and conditions that you need to adhere too. We wish to inform are readers that one need not always go by the free demat account, as we have to also look for the service aspect. Some brokerages may not offer you service like free pick up of forms for opening the account. This is particularly true of low cost brokerages. Also, look for your own convenience especially if the brokerage is close to you. Also, the software that is available for trading should be friendly and very easy to operate. So, largely there are a host of things that you should look for before opening a free demat and trading account.
Low cost brokers
There are many brokers that offer you free demat and trading account. However, you need to ensure that they also provide service. Some of these may not provide service like coming to your house and filing the forms etc.
However, they do provide very reasonable brokerage charges. Some brokers like Zerodha offer you zero brokerage for delivery based transactions.