Best Demat Accounts for Beginners in India (2024)

Best Demat Accounts for Beginners in India (1)

The past couple of years has been very interesting for investors and traders in India. The Indian stock markets have seen a phenomenal rise in the number of Demat accounts that have been opened post the start of the pandemic. The rise in various fintech companies that have created an environment of ease of trading has also contributed to this increased interest in stock markets. There are multiple Demat account providers in the market today. Given below are the details of Demat accounts and top Demat account providers for beginners in stock markets.

Table of Contents hide

1 What are the Best Demat accounts in India?

2 What is meant by a Demat account?

3 What are the factors to consider while opening a Demat account?

What are the Best Demat accounts in India?

There are several reliable and popular Demat account providers in India. Here are some of the best Demat accounts in India based on factors such as reputation, fees, user-friendliness, trading platforms, and customer support:

Fisdom App

Fisdom is an ideal option for opening a Demat account. It offers a hassle-free process to open a Demat account and complete KYC requirements which can be within 5 minutes. Investors can open their Demat Account at zero account opening charges(available for a limited period) through the Fisdom portal. Fisdom provides a seamless user interface that can help investors and traders access all their investments in their portfolios and take strategic decisions for the same.

Some key highlights of Fisdom app are

One app to invest in Stocks (delivery & intra-day), IPOs, NCDs, SGBs, Mutual Funds, ETFs, Derivatives, and leveraged products
Create up to 10 watchlists of 25 scrips each & keep track of 250 scrips with their analysts’ views
Analyst picks recommend the top scrip rated by the analyst
Portfolio tab gives you access to statements,balances, and un-realized & realized P&L.
Order placement made simple with just 2 clicks
Get in-depth market details, key stats, peer comparisons, latest news, option chain, etc, of your favorite stocks. Research and advisory services
Flexible brokerage charges
Get access to proprietary screeners and research reports
Wide range of charting tools
Ability to invest through Mobile app, web app, desktop terminal or Call & Trade
Option to avail services of dealing desk with dedicated relationship manager and access to tailored investing/trading services
Added services like Private Wealth Management and Tax filing are also available on Fisdom app

Other options for Demat account in India

Zerodha Demat Account – Zerodha is the top Demat account and trading service provider in India today. It provides a simple user-friendly interface and low brokerage fees for faster and more convenient trading.
Upstox Demat Account – Upstox is another popular discount brokerage firm in India that offers a Demat account with low brokerage charges and faster trading platforms.
Angel Broking Demat Account – Angel Broking is a full-service brokerage firm in India that offers a huge range of investment options with zero account opening fees and excellent customer support.
ICICI Direct Demat Account – ICICI Direct is a well-known and trusted full-service brokerage firm in India that offers a Demat account with a user-friendly trading platform, value-added services, and competitive brokerage charges.
HDFC Securities Demat Account – HDFC Securities is one of the most popular full-service brokerage firms in India. It offers Demat account services with competitive brokerage charges.
Sharekhan Demat Account – Sharekhan is one of the oldest names in brokerage firms in the country and offers Demat account services. Their platform is quite user-friendly and also provides crucial research reports along with robust customer support.
Kotak Securities – Kotak is a newage name in the brokerage firms that provides various investment options and centralised portal for storing all securities.

What is meant by a Demat account?

The term ‘Demat’ is the short form or the common name used for ‘Dematerialised’ accounts. These accounts are used to hold the securities like shares, mutual funds, bonds, etc. the electronic form. The term “Dematerialization” means the conversion of physical share certificates into an electronic format. This format was introduced in 1996 when the physical format of shares was no longer permitted. The securities held in the Demat account are considered to be a safer, more convenient, and quicker way to manage the investment portfolio.

Demat accounts are maintained by depository participants, which are registered intermediaries between the investor and the depository. There are two depositories in the country. These are the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). Stockbrokers have to register with these depository participants as per the due process following which they can offer Demat services to the investors and traders.

What are the factors to consider while opening a Demat account?

As mentioned above, there are multiple Demat account providers in the country today. Therefore, investors and traders have to consider many important factors while opting for or opening a Demat account. Some of such key factors are highlighted below.

The reputation and credibility of the depository participants (DP) should be the primary concern for opening the Demat account. This is an important step as choosing a DP with a good reputation and track record will ensure that the investments are kept safe.
The user interface provided by the DP should be easy to understand and navigate along with ease of opening the Demat account. Therefore, it is equally important to consider the trading platforms and tools that are available with the Demat account and at the same time provide the utmost safety of their funds.
The charges for opening the Demat account are another major concern while opening the Demat account. A DP that offers low transaction charges and account opening fees will minimize costs for investors and ultimately aid in increasing returns in long run.
The DP should also have robust backend services or customer service and support. This is an essential feature of Demat account providers as a faster remedy of issues and queries is instrumental in ensuring trading and investing is a seamless process.
Many DPs also provide many value-added services like online trading, research reports, and other value-added services that may be beneficial to you. Therefore, a DP with multiple features is an important factor to be considered while opening a Demat account.
Minimum balance requirement: Certain DPs require the investors and traders to maintain a minimum balance, therefore, it is also important to check the minimum balance requirement of the account and ensure that it is in a comfortable range.

What are the benefits of Demat accounts?

Some of the key benefits of Demat accounts are highlighted below.

A safe and secure portal to hold all types of securities eliminating the risk of loss on account of theft or damage of share certificates.
Demat accounts provide easy access to securities that investors and traders can access at any time and from anywhere. This also acts as a centralised portal for all the investments of the investor enabling easy access in a single place.
Demat accounts also provide for a faster and safer transfer of securities and a faster settlement process ultimately benefitting the investors and traders.
The cost of investing is also greatly reduced through the use of Demat accounts as compared to the traditional mode of physical trading.

Conclusion

Demat accounts are one of the primary requirements for trading and investing in stock markets. The newage investing platforms available today make this process quite seamless and hassle-free ensuring further retail participation in the stock markets. These portals are also instrumental in increasing investor awareness and providing the utmost customer support to solve all their queries or issues.

FAQs

Can a person have multiple Demat accounts?

Yes. There is no restriction on having any maximum number of Demat accounts for an individual. The underlying condition is that all the Demat accounts have to be linked with a valid PAN Card

Is it mandatory for Demat accounts to be linked with PAN Card?

Yes, submitting PAN Card and linking the same with a valid Demat account is mandatory as per the SEBI Circular dated 27th April 2007.

What are the documents needed for opening Demat accounts?

The documents needed for opening Demat accounts include PAN Card, Income Proof, Address proof, cancelled cheque, signature, and passport-size photographs.

What are the types of Demat accounts?

There are three types of Demat accounts namely, regular Demat accounts, repatriable Demat accounts, and non-repatriable Demat accounts.

Concepts Covered in the Article:

Demat Accounts and Top Providers: The article introduces Demat accounts, electronic repositories for holding securities like shares, bonds, and mutual funds. It highlights top Demat account providers in India, including Fisdom, Zerodha, Upstox, Angel Broking, ICICI Direct, HDFC Securities, Sharekhan, and Kotak Securities.
Meaning and Significance of Demat Accounts: It explains that Demat accounts hold securities in electronic form, ensuring safety, convenience, and faster management of investment portfolios. These accounts are maintained by depository participants such as NSDL and CDSL.
Factors for Choosing a Demat Account: The article emphasizes essential considerations while selecting a Demat account provider, including reputation, user interface, fees, customer support, additional services, and minimum balance requirements.
Benefits of Demat Accounts: The benefits include enhanced security, easy access to securities, faster transactions, reduced costs compared to physical trading, and streamlined centralization of investments.
FAQs and Related Information: It covers frequently asked questions about having multiple Demat accounts, the necessity of linking PAN cards, required documents for opening accounts, and different types of Demat accounts.
Additional Information: The article provides links to further information such as Demat account charges, procedures for converting physical shares to Demat, and the advantages of having a Demat account.

Understanding these concepts is vital for individuals venturing into stock markets or considering investing through Demat accounts. It's crucial to select the right provider based on individual preferences and requirements, considering factors like fees, usability, customer support, and additional services offered.

Feel free to ask if you seek more specific details or need guidance on any of these aspects!