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.
• Equity delivery transactions both on the NSE and BSE are offered free i.e zero brokerage charges.
• Intraday equity and equity futures attract a fee of 0.01% or Rs. 20/ trading transaction whichever is lower.
• For equity options flat Rs. 20 is charged per executed order.
• Demat account opening charges (one-time) is Rs 100.
• Demat account Annual Maintenance Charges (AMC) are Rs 300 per year.
Further there are STT or CTT charges that vary across transactions i.e for equity delivery it is 0.1% on buy and sell, for equity intra-day it is 0.025% on the sell, 0.01% on selling in case of equity futures and 0.05% on sell for equity options trade.
Now on, GST charges @ 18% also apply on brokerage plus transaction charges.
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.
Stock investments are for free i.e. no brokerage is charged. Further, Upstox charges a brokerage of just 0.01% or upto Rs 20 per traded order (whichever is lower) for intraday, F&O, commodity and currencies irrespective of the volume.
- Demat account opening charges - Rs. 150 for NSE, BSE as well as MCX
- Demat account Annual Maintenance Charges (AMC) -Rs. 150 only for demat accounts and not for trading accounts.
- An additional sum of Rs. 100 is charged for processing physical account opening forms in case they are sent to the broking firm's mailing address.With Upstox as and when you open a demat account, your trading account is automatically opened after you select the segments you wish to trade in.
ICICI DIRECT Demat account
ICICI Direct is one of the top financial services companies in India providing an array of services including stock trading.
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 advantage of ICICI Direct demat account for new small investors or beginners is 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.
The company's brokerage charges are all-inclusive and includes the DP charges that is Rs. 25 or 0.04% (whichever is higher) when shares are sold off or debited from the demat account . Other charges such as CDSL and NSDL as well as other statutory charges are levied separately.
Demat account opening charges- Nil
Demat accout AMC- Nil
Trading account opening charges- Nil
Trading account AMC- Rs. 700
Motilal Oswal has a vast experience of 30 years in the field with nine lakh plus 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
- For equity intra-day trading the brokerage charge - 0.03-0.015%
- For equity delivery trading the brokerage charge - 0.25-0.18%
Sharekhan is one of the popular stock broking firm with an international presence through its branches in the UAE and Oman.
Individual investors can get an idea of the happenings in the markets from Sharekhan fundamental research reports.
- Demat account opening charges -Included in trading account opening charges
- Trading account opening charges - Rs 750 for classic account, Rs. 1000 for Trade Tiger A/c. It is to be noted that these charges are fully adjusted against first six-months brokerage charges.
- Demat Annual Maintenance Charges- Rs 400 (free for 1st year with trading account)
- For equity intra-day trading the brokerage charge - 0.1% for both buy and sell sides.
- For equity delivery trading the brokerage charge - 0.5% or 10 paise per share or Rs 16 per scrip whichever is higher.
India Infoline (IIFL)
India Infoline (IIFL) has good broking terminals and their execution is also very good and speedy.
Comparing in terms of intra day and delivery based trades, 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.
With the IIFL account an investor can trade in Cash, F&O, 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 wirh interface designed for optimal performance. IIFL is the single integrated window to Buy and Sell any product.
Demat account opening is free with IIFL and for the first year Demat AMC also entails no cost. Brokerage firm charges 0.5% for equity delivery, for equity intraday and futures trade, the charges are 0.05% while for equity options it is 1% of premium or Rs. 100 per lot whichever is high.
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 apt 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 - Free
Trading account opening charges - Rs 650 (one time)
Demat Annual Maintenance Charges- Rs 400.
For equity intraday trading the brokerage charges - Rs 10 per executed order irrespective of the trading volume
For equity delivery trading the brokerage charges - Rs 10 per executed order.
With presence in the industry since 1987, Angel Broking offers its customers technology-empowered demat and trading account. Coupled with it also offers fundamental and technical research guidance.
• Demat Account Opening Charges- Nil
• Demat account AMC charges- Rs. 450
• Brokerage fee for equity delivery -0.13-0.40%
• Brokerage fee for equity intraday and futures -0.0128% to 0.04%
• Brokerage fee for equity options- Rs.32- Rs. 50 per lot
• Brokerage fee for commodity-0.128% to 0.4%
It is to be noted that brokerage is a flat monthly fee depending on the trade transaction.
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.
Kotak Securities Demat and Trading Account:
Kotak Securities Demat and trading account comes with a 3 in 1 account which means it brings together saving account, demat account and trading account into one smart service. This account makes it comfortable for investors and gives a smooth experience. Kotak Securities holds membership of both Bombay Stock Exchange and National Stock Exchange and the trader can call to toll-free numbers 1800 209 9191, 1800 222 299 and also can send SMS to KSQ to 5676788.
Charges associated with Kotak Securities Account:
Trading Account Opening Charges: Rs 750 (One Time)
Demat Account Opening Charges: Rs 0 (One Time)
Demat Account Annual Maintenance Charges (AMC): Rs 50 for Indians and Rs 75 for NRIs
Trading Annual maintenance charges (AMC): Rs 0