Demat account is a must for an individual who is planning to buy and sell shares and can be used to hold shares in the electronic form.
New investors who wish to start trading should be smart in choosing a demat account or else he has to end-up paying a high fee and charges for each transaction. Different charges are applicable for opening and maintaining a demat account.
Say, for example, new investors can be interested in opening an account with low brokerage broking firm, firms offering zero account opening charges, or one with low Annual Maintenance Charges (AMC).
Individuals, while choosing a Demat account should check firms with good customer support along with other charges.
Here are 6 best Demat account for new small investors:
Zerodha was one of the first brokerages in the country to start discount broking in the country. The company is now scaling high with its new technology.
Zerodha is amongst the fastest growing, top volume contributors with an average daily trading turnover of over Rs 10,000 crores. The company now offers traders and investors in equities to open demat account instantaneously with their Aadhaar.
The brokerage firm charges a flat fee of Rs 20 per transaction. Intraday and equity futures attract a fee of 0.01% or Rs. 20/ trading transaction whichever is lower
- Equity delivery transactions are offered free.
- Demat account opening charges are Rs 100.
- Demat account Annual Maintenance Charges (AMC) are Rs 300 per year.
Upstox previously known by RKSV is backed by world-class investors and has now become one of the largest low-cost brokerage firms in India with thousands of customers across the country.
Upstox charges a brokerage of just Rs 20 for intraday, F&O, commodity and currencies for each executed trade irrespective of the volume. Stock investments are for free i.e. no brokerage is charged.
- Demat account opening charges - Nil
- Demat account Annual Maintenance Charges (AMC) -Rs. 150
ICICI DIRECT Demat account
ICICI Direct is one of the top financial service companies in India providing an array of services including the stock trading. New small investors who are thinking to open a Demat and trading account ICICI DIRECT is one of the best Demat Account.
You can opt for the 3 in 1 Demat account by ICICI. Clients do not need to open multiple accounts for trading and fund management separately. The main advantages of ICICI DIRECT Demat Account for new small investors or beginners are that it takes away regular fuss over funds transfer between trading and bank accounts. Being a huge brand ICICI provides wide physical presence across the country.
Motilal Oswal has a vast experience of 30 years in the field with seven lakh customers.
The company is a 4-time winner of Best Performing Equity Broker by UTI-CNBC TV18 National Financial Advisory Awards.
- Demat Account Opening Charges - Nil
- Demat Account Annual Maintenance Charges - Rs. 441
- Free Brokerage for first month (limited period offer)
- For equity intra-day trading the brokerage charge - 0.03-0.015%
- For equity delivery trading the brokerage charge - 0.25-0.18%
Company is currently offering a Limited period offer of upto Rs. 5000 cashback on brokerage charges.
Sharekhan is one of the popular stock broking firm with an international presence through its branches in the UAE and Oman.
Individuals investors can get an idea of happening in the markets from Sharekhan fundamental research reports.
- Demat account opening charges - Nil
- Trading account opening charges - Rs 750
- Demat Annual Maintenance Charges- Rs 400
- For equity intra-day trading the brokerage charge - 0.1%
- For equity delivery trading the brokerage charge - 0.5%
India Infoline (IIFL)
India Infoline (IIFL) has a good broking terminas and their execution is also very good and speedy.
Comparing in terms of intra day and delivery based brokerage can be tricky, given that brokers tend to vary their brokerage. Some offer lower brokerage to clients that trade over a fixed volume. IIFL is very safe and trusted brand. IIFL also offers you an option to place the order and close it on a mobile.
Features of IIFL platform
With the IIFL account an investor can trade in Cash, FNO, Mutual Fund, IPOs, Currency, Commodity. It has fast order execution and confirmation. Investors can watch the market live and get Real-time official scrip updates. It is very easy and user-friendly to use interface designed for optimal performance. IIFL is the single integrated window to Buy and Sell any product.IIFL is Secured Authentication & Integrated platform.
5paisa.com is financed by one of India's leading financial services companies - IIFL. Using 5paisa.com, you can avail various services at very low cost. This brokerage firm is an opt brokerage firm for those who like to trade on Mobile. 5paisa.com provides various services such as you can do Online trading, invest in Mutual Funds and also you can buy Insurance Policy on 5paisa.com.
Demat account opening charges - Rs 750.
Trading account opening charges - Rs 750.
Demat Annual Maintenance Charges- Rs 400.
For equity intraday trading the brokerage charges - Rs 10 per executed order.
For equity delivery trading the brokerage charges - Rs 10 per executed order.
Caution for new investors when opening Demat Account?
A Demat account is the same as a bank account. In bank accounts, we keep the money, where as in demat accounts you electronically hold shares. All buying and selling of shares happen through a Demat account. The Securities and Exchange Board of India (SEBI) has issued the guidelines for depository participants to operate a Demat Account.
A listed company has to allow securities to be traded in both physical and dematerialized mode. As the name indicates physical securities mean actual certificates are given and while in demat it is offered in the electronic form. Dematerialisation is the process of switching physical stocks (share certificates) into an electronic form. Shares once converted into the dematerialised form are held in a Demat account. Today, almost all of the shares trading happens using the Demat mode of shares.