Best Stock Brokers for Demat Account in India-2019

Last updated on 8th Jul 2019
by Team Top Share Brokers

(4.5/5)
Best Brokers for Demat Account in India

Demat Account is an ad hock service. In case you are doing delivery trading and want to hold stock, then you need demat account. Demat Account is managed by National Depositories (NSDL and CDSL). There is a standard protocol for a DP account. The only variation is demat account opening charges and AMC charges. Service vise DP will perform the same service with all the brokers. In this section, we will clarify many questions about the demat account and list down "Top 5 brokers by demat account" or "Best Brokers for Demat Account in India". The bank also provides demat service, so you can open a demat account with any broker or bank. Trading account and demat account are two different entities. You can link your trading account with any demat account. It's not mandatory to open a demat account with the same broker. There is some limitation which we will discuss in the later part of this article.

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

The demat account is required when we want to hold the securities. You only need a demat account for trading in equity delivery. If you are an F&O or Intraday trader then you don't need a demat account.

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.

ProStocks

Rated-4/5 Overall

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

Special Offer:ProStocks offer FREE Trading + Demat Account (NO AMC). You can trade unlimited in equity segment for Rs 899/month or choose Rs 15 per trade plan. Thereby saving up to 90% on brokerage. ProStocks also offer Rs 0 Demat AMC with one time Rs 1000 refundable deposit.

Angel Broking

Rated-4/5 Overall

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

Special Offer:Flat Fee Max 30 Per Order on for online transaction. Free Account Opening a limited time offer.

Sharekhan

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.

Special Offer:Get Free Trading + Demat Account (Rs 1150 waived on account opening) for a limited time.

Zerodha

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

Special Offer:Zero Brokerage for Equity Delivery and Zero Commission on Mutual Fund Investment (Direct Mutual Funds), Pay max Rs 20 for equity intraday, F&O, currency and commodity trading. No Hidden Charges.

Demat Account FAQ

  • Why I need a Demat Account?

      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.

  • What is a Depository Participant (DP)?

      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.

  • How to open a Demat Account?

      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.
  • How can I close my Demat Account with my previous broker and transfer my shares to new broker?

      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.

  • What is the Delivery Instruction Slip?

      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.

  • Are there any charges on transfer of scrips from my previous DP to new DP?

      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.

  • What are the charges for credit and debit of shares from my Demat Account?

      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).

  • What is intra-depository transfer and inter-depository transfer?

      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.

  • What is DP ID and where can I find it?

      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, 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.

  • Which is the best bank to open demat account?

      The bank also provide Demat Service, but opening only demat account will not help. You need a trading account also to do trading. ICICI Bank, HDFC Bank, Kotak Bank, Axis Bank and SBI are among the best bank to open demat account. They also have brokerage service, so you can open 3-in-1 account and enjoy uninterrupted service. List of brokerage house providing 3-in-1 services are ICICI Direct, HDFC Securities, SBI Securities, Axis Direct and Kotak Securities. You can open only Damt account to hold your Mutual Funds, FD and other product with a bank demat account.

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