Investing in real stock shares includes a lengthy process, a lot of paperwork, and the danger of receiving phony shares. Therefore, a Free Demat account is necessary to keep the entire process simple and fast.
Any investor in India who wants to own securities such as stocks, bonds, or mutual funds must first open a Demat account.
So, when it comes to keeping shares and assets without having to bother about paperwork, a Demat account is your best bet. And free demat account is like the cherry on the cake!
Here’s why you should open a Demat account right now.
1. A Demat account is required to buy or sell stocks.
2. Without it, you can’t invest in equity directly.
3. SEBI requires it for transactions involving listed business securities.
What is a Demat Account?
Dematerialized accounts are also known as Demat accounts. Holding a Free Demat Account, in other terms, is the process of converting or dematerializing your physical shares into an electronic format.
For example, a Demat account keeps electronic copies of publicly traded company shares and securities.
You can have a wide range of investments in a Demat account, including bonds, equity shares, government securities, mutual funds, and exchange-traded funds.
Like a bank account, a Demat account gets credited or debited each time you purchase or sell stock in a company.
It not only removes redundant paperwork but also helps to streamline the stock trading process.
Two institutions, National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) manage all Demat accounts in India.
1. Zerodha
India’s No. 1 stockbroker is Zerodha. It is the world’s largest and most popular online discount brokerage firm, with equity, currency, commodities, initial public offerings, and direct mutual funds services.
For equity delivery trades and mutual funds, Zerodha charges no brokerage. Zerodha has developed its trading software, including Zerodha Kite (a web and mobile trading app), Coin (a mutual fund investing platform), and Varsity (a mutual fund investment platform) (investor education program)
Read our Zerodha Review.
Charges for Creating a Zerodha Account
| Account Opening Fees | |
| Trading Charges [One Time] | Rs 200 |
| Trading AMC [Yearly] | Rs 0 (Free) |
| Demat Charges [One Time] | Rs 0 |
| Demat AMC [Yearly] | Rs 300 |
| Margin Money | 75% Margin |
Zerodha Flat Brokerage Plan
| Segment | Brokerage Fee |
| Equity Delivery | Rs 0 (Free) |
| Equity Intraday | Rs 20 per executed order or .03%, whichever is lower |
| Equity Futures | Rs 20 per executed order or .03%, whichever is lower |
| Equity Options | Rs 20 per executed order |
| Currency Futures | Rs 20 per executed order or .03%, whichever is lower |
| Currency Options | Rs 20 per executed order or .03%, whichever is lower |
| Commodity Futures | Rs 20 per executed order or .03%, whichever is lower |
| Commodity Options | Rs 20 per executed order or .03%, whichever is lower |
Pros and cons
Pros
- For stock delivery, there are no charges of Rs. 0
- On intraday trades, impose a brokerage fee of Rs. 20.
- Platforms for advanced trading
Cons
- During trading hours, servers may go down.
2. Upstox
Upstox is a tech-first low-cost brokerage service in India that offers exceptional trading chances. On its Upstox Web and Upstox Pro Mobile trading platforms, the company offers trading in several areas such as equities, commodities, currency, futures, and options. It is also one of our Top Rate – Free Demat Account
Trading, analyzing, charting, and many other trading functions are available on the Upstox trading platform. Unisys NEST OMS and Omnisys NEST RMS are used in the Upstox trading platform.
Read our Upstox Review.
Upstox brokerage plans
| Brokerage Plans | |
| Equity Delivery Trading | Zero |
| Equity Intraday Trading | Rs.20 per order or 0.05% (whichever is lower) |
| Commodity Options Trading | Flat Rs.20 per executed order |
| Commodity Futures Trading | Rs.20 per order or 0.05% (whichever is lower) |
| Equity Futures Trading | Rs.20 per order or 0.05% (whichever is lower) |
| Equity Options Trading | Flat Rs.20 per executed order |
| Currency Futures Trading | Rs.20 per order or 0.05% (whichever is lower) |
| Currency Options Trading | Flat Rs.20 per executed order |
| Minimum Brokerage | Rs.20 |
| Demat AMC Charges | Rs.249 |
| Trading AMC Charges | Rs. 354 |
Upstox Demat Account Opening Charges
| Demat Services | |
| Trading Charges [One Time] | NA |
| Trading AMC [Yearly] | Rs. 300 + 18% GST |
| Demat Charges [One Time] | Rs 0 (Free) |
| Demat AMC [Yearly] | Rs 249 |
Pros & Cons
Pros
- Each package includes free equity delivery brokerage.
- Traders can use several technical indicators.
- Upstox is backed by Ratan Tata, which lends credibility to the RKSV group
Cons
- The priority plan limits margin exposure.
- Customers must exercise caution when choosing a mutual fund
- Every user in the basic plan must pay the Demat transaction charges
3. 5paisa
5paisa is the leading online stock broker in India that provides ordinary investors with low-cost brokerage services. IIFL founders promote 5paisa Capital Ltd, a publicly-traded and competently managed company.
At the BSE, NSE, and MCX, 5paisa online trading is accessible in stock, commodities, and currency. It is one of India’s most affordable discount brokers. If you are a frequent trader, you can save up to 95% on brokerage fees. Apply 5Paisa Free Demat Account Now
Read our 5paise Review.
5paisa brokerage plans
| Transaction | Optimum Plan | Platinum Plan | Titanium Plan |
| Stock Delivery | Rs. 20 per order | Rs. 10 per order | Free |
| Stock Intraday Trading | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
| Stock Futures | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
| Stock Options | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
| Currency F&O Trades | Rs. 20 per order | Rs. 10 per order | Rs. 10 per order |
5paisa Account Opening Charges
| Service | Charges |
| Trading Account Opening Charges (One Time) | Rs 300 |
| Trading Annual maintenance charges (AMC) | Rs 0 |
| Demat Account Opening Charges (One Time) | Rs 0 |
| Demat Account Maintenance Charges (AMC) | Rs 540 yearly (charged as Rs 45 per traded month) |
Pros & Cons
Pros
- The promoter of 5paisa is the IIFL Group, a leading Indian NBFC with over two decades of experience.
- It allows you to choose between two subscription options based on your trading demands.
- Traders can access free technical, derivative, and fundamental research as well as an advanced trading platform.
Cons
- Demat transaction fees are rather high.
- In comparison to other bargain brokers, there are higher exchange transaction fees.
- Call & trade is provided at a significant premium.
- NRI trading is not available on 5paisa.
4. Fyers
Fyers Securities is an Indian stockbroker with cheap commissions. They are one of the most affordable stock brokers available online situated in Bangalore. At the NSE, Fyers trades in the Equity Cash, F&O, and Currency Derivatives segments.
For Demat and internet trading, Demat, and mutual fund services, they have partnered with IL&FS broker Securities Services Limited. This stockbroker created a new way of stock investment known as “themed investment,” allowing investors to invest in the same equities category rather than individual stocks.
Read our Flyers Review.
Fyers brokerage
| Brokerage Charges | |
| Equity Delivery Trading | Free |
| Equity Intraday Trading | Rs.20 per order or 0.03% (whichever is lower) |
| Commodity Options Trading | Rs.20 per executed order |
| Equity Futures Trading | Rs.20 per order or 0.03% |
| Equity Options Trading | Rs.20 per executed order |
| Currency Futures Trading | Rs.20 per order or 0.03% (whichever is lower) |
| Currency Options Trading | Rs.20 per executed order |
| Minimum Brokerage | Rs.20 per executed order |
| Demat AMC Charges | Free for 1st year & Rs.300 |
| Trading AMC Charges | Free |
Fyers Account Opening Charges
| Demat Services | |
| Depository Source | CDSL & NSDL |
| Account Opening Charges | Free |
| Demat AMC Charges | 1st Year Free & Rs.300 per Annum |
| Trading AMC Charges | Free |
| Margin Money | Zero-Margin |
| Offline to Online | Yes |
Pros & Cons
Pros
- Opening an account online is completely free.
- Trading of free equity delivery. There is no commission on cash and carry trades.
- There are no hidden fees. The fees are very clear.
- An in-house trading platform provides the ability to introduce new features/services quickly.
- All of the trading software is available for free.
- Without a POA, you can open a Demat account.
Cons
- Charges for exchange transactions are higher than those charged by other discount brokers.
5. IIFL
The India Infoline Foundation (IIFL) was founded in 1995. It is an India Infoline Groups brokerage firm. In India, IIFL is a rapidly expanding financial services solution provider.
Through its membership with the NSDL and CDSL depositories, IIFL offers a Demat account. Your shares are held by these two government-approved depositories, NSDL and CDSL. IIFL holds a depository participant membership, allowing it to open and maintain Demat accounts. IIFL is merely a middleman between customers and central depositories.
Read our IIFL Review.
IIFL began as a retail brokerage firm with the launch of its 5 paisa trading solution or platform.
IIFL Flat Brokerage Plan
| Brokerage Charge & Fees | |
| Equity Delivery | Rs 0 (Free) |
| Equity Intraday | Rs 20 per order |
| Equity Futures | Rs 20 per order |
| Equity Options | Rs 20 per order |
| Currency Futures | Rs 20 per order |
| Currency Options | Rs 20 per order |
| Commodity | Rs 20 per order |
| Minimum Brokerage | Rs.0.05 per Share |
| Demat AMC Charges | Rs 0 (Free for 1st year) |
| Trading AMC Charges | Free |
IIFL Demat Account Opening Charges
| Trading Charges [One Time] | Rs 0 (Free) |
| Trading AMC [Yearly] | Rs 0 |
| Demat Charges [One Time] | Rs 295 |
| Demat AMC [Yearly] | Rs 0 (Free for 1st year) |
| Margin Money | 75% Margin |
| Offline to Online | Yes |
Pros & Cons
Pros
- IIFL Securities has offices in many major cities in India as well as internationally.
- Trading Terminal, their trading platform, offers innovative technology-based trading and investing options.
- Personal Fixed Deposits are accepted as collateral for margin funding.
- It is your one-stop-shop for all of your trade and financial requirements.
Cons
- They do not provide a 3-in-1 solution that includes trading, Demat, and a bank account.
- Their brokerage fees are higher than those charged by other full-service stockbrokers.
- There are no margin or brokerage calculators available to determine how much a transaction will cost.
6. Angel Broking
Angel Broking is one of India’s largest full-service retail brokers, specializing in online discount broking. Stock and commodities broking, investment counseling services, margin finance, loans against shares, and financial product distribution are among the company’s investing and trading services.
Angel Broking currently provides the ‘Angel iTrade PRIME’ flat-rate brokerage package, allows you to trade in all market categories (Intraday, F&O, Currencies & Commodities)
Angel Broking is well-known for its superior trading tools and financial advice. In addition, Angel is the first large-scale full-service broker to offer its clients discounted brokerage prices.
Read our Angel Broking Review.
Angel Broking Brokerage Plans
| Brokerage Plans | |
| Equity Delivery Trading | FREE |
| Equity Intraday Trading | Rs.20 / Executed Order |
| Commodity Options Trading | Rs.20 / Executed Order |
| Equity Futures Trading | Rs.20 / Executed Order |
| Equity Options Trading | Rs.20 / Executed Order |
| Currency Futures Trading | Rs.20 / Executed Order |
| Currency Options Trading | Rs.20 / Executed Order |
| Minimum Brokerage | Rs.20 / Executed Order |
| Demat AMC Charges | Rs.450 |
| Trading AMC Charges | Free |
Angel Broking Demat Account Opening Fees
| Trading Charges [One Time] | Rs 0 (Free) |
| Trading AMC [Yearly] | Rs 0 (Free) |
| Demat Charges [One Time] | Rs 0 (Free) |
| Demat AMC [Yearly] | Rs 450 |
Pros & Cons
Pros
- Advisory services are provided at no extra cost to discount brokerage clients.
- It serves as a one-stop-shop for a variety of trading and investment-related products and services.
- They use cutting-edge technology to allow investors to trade and invest on the go, with real-time updates and notifications at their fingertips.
- The company has a pan-India presence in many locations and a strong relationship with sub-brokers.
Cons
- Because Angle Broking is not a bank, it does not offer a 3-in-1 account that combines trading, Demat, and banking.
- Trades that require the aid of a broker are charged an additional Rs—20 per executed order.
7. Sharekhan
Sharekhan is the third-largest stockbroker in India. Sharekhan provides its brokerage services through the online trading website Sharekhan.com and 1700+ offices in over 550 locations across India, including branches and franchisees.
Sharekhan has a presence in the United Arab Emirates and Oman. It caters to many clients, including investors, traders, corporations, and non-resident Indians (NRIs).
They also provide trade execution services for the BSE and NSE’s equity cash and derivatives segments and commodities trading services on the MCX and NCDEX.
Read our Sharekhan Review.
Sharekhan Brokerage Charges & Fees
| Brokerage Charges | Basic Plan |
| Intra-day | 0.50% |
| Delivery | 0.10% |
| Equity Futures | 0.10% |
| Equity Options | Rs 50 per lot |
| Currency Future | 0.10% |
| Currency Options | Rs 30 per lot |
| Commodity | 0.03% |
Sharekhan Demat Account Opening Fees
| Demat Services | |
| Trading Charges [One Time] | Rs 0 (Free) |
| Trading AMC [Yearly] | Rs 0 (Free) |
| Demat Charges [One Time] | Rs 0 (Free) |
| Demat AMC [Yearly] | Rs 400 (Free for 1st year) |
Pros & Cons
Pros
- Sharekhan provides a variety of trading platforms to meet the needs of its customers.
- It provides several brokerage slabs to suit the needs of different consumers.
- Investors can make use of Sharekhan’s online and classroom training, seminars, and workshops.
- For DP transactions, Sharekhan does not impose a fee. Transferring shares from and to the dp account is completely free.
- With Sharekhan, you may call and trade for free.
- For future and option trading, Sharekhan accepts fixed deposits as security.
Cons
- Sharekhan does not provide banking services; they do not offer a 3-in-1 account.
- They charge a percentage-based brokerage fee, which is greater than flat-fee brokers.
- Traditional account holders cannot trade commodities.
8. Motilal Oswal
Motilal Oswal Securities Limited is a Motilal Oswal Financial Service Limited company. The firm provides equity, commodity, currency, and derivatives trading services. Other goods include Mutual Funds, Initial Public Offerings (IPOs), Gold, Insurance, and Fixed Income.
MOSL is well-known for its MOAMC discretionary Portfolio Management Service, which has a proven track record of outperforming the benchmark across multiple market cycles.
Retail customers, overseas institutional investors, High Net Worth Individuals, financial institutions, and small and large corporations are among the clients of this diverse financial services organization today.
Read our Motilal Oswal Review.
Motilal Oswal Brokerage Charges
Brokerage Charge & Fees | |
| Equity Delivery | 0.50% |
| Equity Intraday | 0.05% (both side) |
| Equity Futures | 0.05% (both side) |
| Equity Options | Rs 100 per lot (both sides) |
| Currency Futures | Rs 20 per lot (both sides) |
| Currency Options | Rs 20 per lot (both sides) |
| Commodity | 0.05% (both side) |
| Minimum Brokerage | Percentage of Transaction |
| Demat AMC Charges | Free or Rs.400 per Annum (From 2nd year) |
| Trading AMC Charges | Free |
Motilal Oswal Account Opening Charges
| Transaction | Charges |
| Trading Account Opening | Rs 1000 (One Time) |
| Trading Annual Maintenance (AMC) | Rs 0 |
| Demat Account Opening | Rs 0 |
| Demat Account Annual Maintenance (AMC) | Rs 299 |
Pros & Cons
Pros
- • There are free call and trade services.
- • Get a free in-depth stock or scheme analysis and recommendations for a limited time.
- • The ‘Trend guiding tool’ combines the power of artificial intelligence, machine learning, and deep industry knowledge to develop a tool designed exclusively for traders.
- • Traders and investors can take advantage of a variety of trading platforms.
Cons
- No flat-fee or low-cost brokerage plans are offered.
- Only regular plans are offered in mutual funds.
- Some investing services demand an extra cost.
9. ICICIdirect
ICICIdirect is one of India’s most well-known retail stockbrokers. It is a member of the ICICI Group, provides users with internet trading and investment services.
At the BSE, NSE, and MCX, equities, commodity, and currency trading are available. Mutual funds and initial public offerings are also available, as well as fixed deposits, bonds, and NCDs.
The 3-in-1 account, which comprises an ICICI Bank account, an ICICI Trading account, and an ICICI Demat account, is ICICIdirect’s most popular service. The three-in-one account ensures a smooth trading experience.
Read our ICICI Direct Review.
ICICI Direct Brokerage Charges
| Brokerage Charge & Fees | |
| Equity Delivery | 0.55% |
| Equity Intraday | Rs 20 per order |
| Equity Futures | Rs 0 (Free) |
| Equity Options | Rs 20 per order |
| Currency Futures | Rs 20 per order |
| Currency Options | Rs 20 per order |
| Commodity | Rs 20 per order |
| Minimum Brokerage | Rs.20 per Trade |
| Demat AMC Charges | Rs.300 per Annum from 2nd year |
| Trading AMC Charges | Zero |
ICICI Direct Demat Account Opening Charges
| Demat Services | ICICI Direct |
| Trading Charges [One Time] | Rs 0 (Free) |
| Trading AMC [Yearly] | Rs 0 (Free) |
| Demat Charges [One Time] | Rs 0 (Free) |
| Demat AMC [Yearly] | Rs 300 (from 2nd year) |
Pros & Cons
Pros
- Your money and investment will be safe.
- Innovative products include Margin, MarginPlus, BTST, and SPOT.
- Trading in derivatives, NRI services, mutual funds, IPOs, and online life insurance is available.
- You’ll get paid right away if you sell your investments.
Cons
- Delivery brokerage is extremely high.
- For little and penny stock traders, this is not a suitable fit.
- Charges for using a trading terminal.
- Minimum Brokerage Fees are Exorbitant.
10. HDFC Securities
HDFC Securities (HDFCsec) is an HDFC Bank’s equity trading company. HDFC Securities offers combined online and telephone trading.
The HDFC Securities trading account features a special 3-in-1 feature that combines your trading account with your existing HDFC bank savings account and Free Demat account.
To complete the transactions, shares are effortlessly transferred from the associated Demat/Bank account.
On the NSE and BSE, HDFCsec offers Cash-n-Carry, Day Trading, Trade on Futures & Options on the NSE, and Online IPO Investment.
Read our HDFC Securities Review.
HDFC Securities Brokerage Charges
| Brokerage Charge & Fees | |
| Equity Delivery | 0.50% or min Rs.25 |
| Equity Intraday | 0.05% or min Rs.25 |
| Equity Futures | 0.05% or min Rs.25 |
| Equity Options | Rs 100 per lot or 1% of the premium (whichever is higher) |
| Currency Futures | Rs 23 per contract |
| Currency Options | Rs 20 per contract |
| Commodity | 0.02% for Intraday / 0.025% for positional |
| Minimum Brokerage | Rs.25 |
| Demat AMC Charges | Rs.750 per Annum |
| Trading AMC Charges | Rs.0 per annum |
HDFC Securities Demat Account Opening Charges
| Trading Charges [One Time] | Rs 999 |
| Trading AMC [Yearly] | Rs 0 |
| Demat Charges [One Time] | Rs 0 |
| Demat AMC [Yearly] | Rs 750 |
Pros & Cons
Pros
- They value the safety and security of their investors above everything else; thus, their money is safe with them.
- They are the first Voice-Enabled Investing Assistance provider in India, and they also provide offline guidance and in-person consulting to their clients.
- Due to the availability of their offices in the surrounding areas, they have a large presence with several locations, allowing investors to settle their queries in person.
- Their digital platforms Digify and DigiGold make it simple for users to invest in mutual funds and gold online.
Cons
- Their brokerage fees are calculated as a proportion of the transaction amount, making them highly expensive.
- For trading operations, they have a minimum charge cap.
Conclusion
After reading thus far, you should have a good notion of all the brokers that offer the best Free Demat account in India.
Choosing a good broker platform, on the other hand, is entirely up to you and is heavily influenced by your trading viewpoint, which might be long-term, short-term, or intraday.
You must select an economical service that meets your needs, and you must also thoroughly examine the application and technical analysis tools before selecting a broker.
Thank you for devoting your time and reading our article on Free Demat Account. And we hope that you will be able to decide which is the best broker to open a Free Demat Account.
FAQs
Which among India's free demat accounts is the best?
When looking for the best Demat account in India, you should first consider the following factors:
- You must be given a free Demat and trading account by the brokerage.
- The stockbroker’s price must be reasonable and straightforward, with no hidden fees.
- The stockbroker should offer the greatest trading platform in India as well as excellent customer service.
Is it possible to buy stocks without a free demat account?
No, having shares in dematerialized form is now required, thus you won’t be able to buy them in physical form. So, if you wish to buy any shares, you’ll need a Demat account.
Is it possible for me to have many free Demat accounts? Is it permissible in India to have more than one demat account?
Yes, having multiple Demat accounts is completely allowed in India. However, your PAN number should be connected to all of your Demat accounts.