Individuals who prefer to trade shares and securities should have a Demat account as this will help the investors to hold the shares and securities in a safe, easy and convenient form. The term 'Demat' is the abbreviation of Dematerialisation Account.
But to hold a Demat account one has to bear certain charges which come along with the account and it includes opening charges, safety charges or custodian fees, annual maintenance charges, transaction charges and so on. Hence the holder of a demat account at times may feel an urge to close down the account as there are many fees which have to be borne by them to maintain an account. To help investors to reduce the different types of fees, some of the brokers in India offer a demat account for free.
Let's first understand the basic meaning of a demat account.
What is a Demat Account?
A Demat Account is the full form of dematerialized account. It is an account which can be used to hold shares, securities, bonds, exchange-traded funds, mutual funds in an electronic format. The very purpose of holding a Demat Account is to hold the shares and other securities traded by an individual can be converted from physical form to electronic form and this eases them to trade easily during online trading sessions.
In India, depositories like National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL) are the two well recognized existing depositories which provide free demat account services. Apart from this stockbroker or depositary participants, intermediaries facilitate these services.
Each of these intermediaries is likely to have their demat account charges which usually varies based on the volumes held in the account, type of subscription, terms and conditions agreed between a depository and a stockbroker.
To reduce the burden of investors who has to pay several types of charges some of the brokers offer free demat account to investors. Let's know the list of 5 Best Free Demat Accounts in India.
Motilal Oswal Free Demat Account
This demat account rolled out by the Motilal Oswal Financial Services Limited is one of the diversified financial services firms which provides a range of financial products and services to the customers. The company was set up by Motilal Oswal and Raamdeo Agarwal as a brokerage house way back in 1987.
Features of Motilal Oswal Free Demat Account
- Get Zero Annual Maintenance Charges (AMC) for a lifetime.
- Investors can get customized investment plans with just one click.
- Investors can get a wide choice of asset classes to invest in.
- The company offers in-depth analysis from experts on a daily, weekly and monthly reports from across the asset class and provides a bit of solid advice to its customers.
- It has a dedicated research team who work on large-cap, mid-cap stocks.
Angel Broking Free Demat Account
Angel Broking is one of the oldest brokerage houses which is prevailing in the industry since 1987. The firm is known for technology-enabled DEMAT and trading account as the investor need not have to provide all the relevant details every time as the transaction will be carried out through the depository participant (DP) identification.
Features of Angel Broking Free Demat Account
- There is no charge or Zero charge for equity deliveries.
- There will be no hidden charges associated with the account.
- The firm will charge Rs 20 per order for intraday, currencies, commodities and futures and options (F&O)
- Investors can get a 100% digital account opening as the company adopts a paperless demat account opening process.
- The investors can opt for a two-in-one account for seamless trading of equities, commodities, IPO, currencies, mutual funds, derivatives.
5Paisa.com Free Demat Account
5Paisa.com which is a member of BSE and NSE is one of the discount brokers offering firm which provides investing and trading services in several segments which includes derivatives (futures and options), stocks, currency.
The company is backed by the experience and usage of advanced technology which is mainly developed by its parent company IIFL over the last 20 years in the retail broking industry.
Features of 5Paisa.com Free Demat Account
- There are no brokerage fees.
- There are be no Depository Participants Charges associated with the demat account.
- Zero Account Maintenance Charges (AMC) with pricing plans.
- Investors can avail the benefits of an integrated platform for a mutual fund, stocks, insurance and advisory services.
- Get instant paperless trading and demat account.
- Get advanced mobile application facilities.
Upstox Free Demat Account
Upstox is one of the low-cost broking firms in the country which provides trading on different segments such as currency, commodities, equities, futures, options. Upstox is backed by a group of investors which includes Ratan Tata, GVK Davix and Kalaari Capital.
Features of Upstox Free Demat Account
- Get a Free Trading and Demat Account.
- Zero brokerage charges for the first 30 days from the date of opening of the account.
- Get free equity deliveries which are easy on the pockets.
- The brokerage charges Rs 20 per intraday orders.
- Get innovative, cutting-edged trading software platform on the website, desktop or mobile as per the convenience of the investor.
- Investors can go for paperless account opening by just providing Aadhaar Card details.
Zerodha Demat Account
Zerodha, one of the brokerage firms in India which started its operations in August 2010 also provides a free demat account for traders, investors. The term ‘Zerodha' is a combination of two words - Zero and Rodha. The word Rodha is a Sanskrit word and refers to the barrier.
Features of Zerodha Demat Account
• The equity delivery trades are free as there will be no charges associated with it.
• The brokerage charges Rs 20 or 0.03% (whichever is low) on the executed order for intraday trading and everything else.
• This brokerage firm has a portal, interactive blog, Z-Connect to resolve the queries of investors, traders.
• Traders need not have to pay any upfront fees or turnover commitment.
• Analysis, charting, trading is rolled out into the desktop platform known as Pi.
About the Author
Archana is a content writer at GoodReturns. She has been writing articles related to investment planning and personal finance for more than two years.