Planning to open Demat account but don’t know which ones are the best options to start with? Well, you have come to the right place. In this post, we are going to tell you which is the best Demat account service provider in India so that you dont have to worry about making the right move in share trading. But before that, let us first tell you what is a Demat account! Keep reading this post to find out more.
What is a Demat account?
Lesser known as a dematerialized account, Demat accounts are used to hold securities and shares in a more electronic form. In countries like India, it has now become mandatory for people to hold all the purchased shares in Demat form. A few people like to keep them as certificates as they were probably inherited previously inherited from parents. But in these times, it is essential to convert them into electronics so that they can easily be purchased within stock markets.
Demat accounts have various advantages. You can immediately transfer your securities and are able to eliminate bad deliveries, mutilation, theft, risk by loss, etc at a very easy pace. Not just that, you can allow corporate benefits like dividends, bonus rights, etc. that will help with nomination facilities, etc.
Motilal Oswal
Motilal Oswal is a well-established and popular firm especially among retail investors. They are known for offering custom made products and personalized services to their clients. They also have a highly qualified team of professionals who are assigned as portfolio/relationship managers to strategically manage client’s funds.
Motilal Oswal is not only into broking but they also offer several other services such as investment banking, portfolio management, institutional broking, commodity broking, asset management, etc.
Zerodha
Established in Bangalore, Zerodha introduced the whole concept of discount brokerages within India. It is also one of the biggest brokers in India. The best part about Zerodha is that they don’t always charge brokerage or any trades. But you will be expected to pay Rs 20 for the executed orders of derivative and intraday trading. Demat accounts are also easy to open and dont take longer than 15 minutes. You won’t be expected to pay any additional charges apart from small maintenance fees from the second year.
Upstox
Upstox is a Mumbai based firm, previously known as RKSV securities, the brokerage is identical compared to Motilal Oswal & Zerodha. The Demat accounts here can be easily opened online and you will not be paying any additional charges for opening your account. Demat accounts are easy to be open on the internet and you will not have to pay any extra charges for opening your account. But, there will be an annual charge for maintenance of Rs 150 that you will pay from the second year.
5 Paisa
5 Paisa is described as a discount broker which usually charges you the lowest brokerage costs compared to all the other brokers. They are promoted by IIFL, a popular NBFC established in India approximately two decades ago.
Demat accounts can easily transform your stock market trading experience. These days, you don’t even have to go to a store to start your account. Just download the right share market app and you will be able to open your account in no time.