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Best Stock Brokers for Demat Account in India - 2022

Last updated on 10th Aug 2020
by Team Top Share Brokers

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Best Brokers for Demat Account in India

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Demat Account is the safest and easiest way of holding securities. Demat Account is managed by National Depositories NSDL and CDSL. An investor cannot directly go to the National Depositories (NSDL and CDSL) to open a demat account. You have to go through the channel of Depository Participant or DP. The demat account can be opened with the broker or bank as they serve as a depository Participant for the national depositories.

Most of the Indian Share Brokers offer DP services along with the trading account. Trading account and demat account are two different entities. It is not mandatory to open a demat account with the same broker. You can link your trading account opened with one broker to the demat account opened with another. A person can open more than one demat account, but more demat accounts attract more AMC charges. So it is in your favor to consolidate all your holdings in one Demat Account.

Demat Account not only hold shares but also hold debt instruments like bonds, NCDs, government securities, mutual funds in one place. However if you are an F&O or Intraday trader, then you don't need a demat account.

Many brokers offer free Demat Account opening but apply annual Demat maintenance charges (Demat AMC) which lies between Rs 300 to 700 yearly.

Explanation Of Demat Charges:

  1. Demat Account Opening Fee: This is a one-time fee that you need to pay to open an account.
  2. Demat Account Annual Maintenance Charges (AMC): It is a yearly fee that is automatically deducted from your account every year. The fee is charged to maintain your demat account.
  3. Transaction Charges: Transaction charges are the only levy while selling or outgoing of shares from your demat account. For incoming or buying of shares, there is no transaction charges applied.
    • It is usually charged as:
    • ⁕8 + ⁕5.50 + service tax for every market debit transaction.
    • 0.02% or ⁕20 whichever is higher, for off-market debit transactions.
  4. Dematerialization Charges: Charges to pay if you like to change all your holdings from paper form to electronic form. It can be charged per certificate or one amount for one company's share. You have to request for the dematerialization of certificates by filling up a dematerialization Request Form (DRF), which is available with your broker (DP) and submitting the same along with the physical certificates.
  5. Rematerialization Charges: These are charges incurred for the conversion of electronic holding to the physical lot. It can be charged per certificate or per set up. It can be done by submitting the Remat Request Form (RRF). The RRF must be signed by all holders, verified by the DP and then submitted to the Company or Registrar.
  6. Pledge Charges: The charges to pay if you like to pledge your securities to take a loan against the financial securities like share/bonds in your DP account.
  7. Unpledge Charges: The charges to unpledged your securities.
  8. Pledge Charges Invocation: These are charges incurred for creating new holdings after closure of a pledge.

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ProStocks Best Stock Brokers for Demat Account in India

ProStocks offers 2-in-1 account, which includes a trading account and a demat account for seamless transactions between the two. ProStocks is DP with CDSL. ProStocks is the cheapest Demat service provider in India as it offers zero Demat Account opening fee and no Demat annual maintenance charges (AMC). You only need to pay a one-time refundable deposit of Rs 1000.

ProStocks Account Opening charges: Zero

ProStocks Demat Account Maintenance charges: Zero

Rated 4.5 stars Rated-4.5/5 Overall

Angel Broking

Angel Broking Best Stock Brokers for Demat Account in India

Angel Broking is registered as a Depository Participant with CDSL. You can avail Demat services with Angel to get a fast and paperless transaction.

Angel Broking Demat Account Opening charges: Zero

Angel Broking Demat Account Maintenance charges (AMC): Zero

Rated 4.5 stars Rated-4/5 Overall


Sharekhan Best Stock Brokers for Demat Account in India

Sharekhan is the full-service broker offering a 2-in-1 account that includes trading and Demat Account under one roof. Sharekhan is registered as a Depository Participant with CDSL.

Sharekhan Demat Account Opening Charges: Zero

Sharekhan Demat Account Maintenance charges AMC:  Rs 400 PA.

Rated 4.5 stars Rated-4.5/5 Overall


Zerodha Best Stock Brokers for Demat Account in India

Zerodha, the biggest discount broker in India offers demat account along with the trading account. Zerodha is a depository participant (DP) with Central Depository Services Limited (CDSL). 

Zerodha Demat Account Opening Charges: Rs 100

Zerodha Demat Account Maintenance charges: Rs 300 per year

Zerodha FAQs

Demat Account is like a digital safe where you can hold your shares, mutual funds, debentures and bonds in an electronic form. A Demat Account holds all the investments an individual makes in shares, government securities, exchange-traded funds, bonds and mutual funds in one place.


A Depository Participant (DP) is an agent appointed by the Depository who is authorized to offer depository services to all investors. They are the intermediaries between the depository and the investors. An investor cannot directly open a DEMAT account with the depository. The DP opens the account with the Depository and takes up the responsibility of maintaining the account and updating them as per the instructions are given by the investor from time to time.


Here are the steps to open a demat account:

  1. Select your DP: DPs can be banks, brokers or financial service providers. Select your DP, preferably the stock broker with which you have a trading account, so all your trading transactions will be seamless.
  2. Fill out and submit account opening form, KYC form, and Documents: Fill out and submit the form given to you for opening an account, the KYC form, passport size photographs, your PAN card (Permanent Account Number), and other photocopied documents. The documents required to open a demat account include proof of address and proof of identity. Also, you need to give the name of a person as your nominee.
    • Proof of Identity Documents:
      • Voter’s identity card
      • Income tax returns
      • Bank attestation
      • Electricity bill
      • Passport
      • Driving license
      • PAN card
      • Identity card issued by central or state govt., professional bodies like the Bar Council, Institute of Chartered Accountants of India, and Institute of Cost Accountants of India or by public sector undertakings, regulatory or scheduled authorities, public financial institutions, university-affiliated colleges, or scheduled commercial banks.
    • Proof of Address Documents:
      • Ration card
      • Leave and license agreement
      • Verified copies of the electricity bill
      • Bank statement or passbook
      • Driving License
      • Residential telephone bill
  3. In-Person Verification (IPV): In-person verification (IPV) is conducted by a person from your DP’s firm to find out the existence of the customer by meeting in-person and verifying identity and address proof with original and to ensure that the details provided by you in the form are authentic. This can be done over your pc by video meeting/conferencing with the help of internet and web camera. Before the IPV starts, make sure you have your address proof and PAN card ready to show.
  4. Get Beneficiary Owner Identity (BOID): Once your application has been processed and your DP has facilitated the opening of your account, they will give you a Beneficiary Owner Identity (BOID) – a unique account number – that you can use during future transactions and access your account.


For some reason, if you want to switch your demat account from your previous broker to the new broker, say from HDFC Securities to ProStocks, you need to fill Close and Transfer Instruction Slip or  Delivery Instruction Slip (DIS) at your previous demat service provider and provide your new demat account number. Also, you have to get the Client Master list from your new broker and providing the same to your old broker. They will transfer the equity in off-market transactions at no additional cost.


By the first look, DIS looks like a cheque book in which you DP ID details are already filled. This is issued by your broker to you at the time of demat account opening. The first book is usually free and you have to pay for the additional book if you need one.


As per SEBI regulation, your depository should not charge you for account closure nor for transfer effected through closure and transfer instructions. But you still need to check with your broker.


The credit of shares in your demat account is completely free and debits are charged Rs 13.50 + GST per ISIN (International Security Identification Number).


There are only two National Depositories in India  NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Service Ltd.) and your demat account will be with either of these. If your old and current demat accounts are with the same depository, you’ll be making an intra-depository transfer. If they belong to the different depository, then it will be called an inter-depository transfer.


Your unique DP Id is a 16 digit alpha-numeric or just numeric number. For the CDSL depository account, all 16 digits are numbers.

For NDSL depository account, the first 2 digits are alpha and the next 14 digits are numbers.

Now, the first 8 digits represent your Demat service provider called DP. It will be the same for all the clients of that broker.

Next 8 digits represent your individual Demat account number with your Demat service provider which is also called beneficiary ID. It will be unique to you.