what is demat account? how to open a demat account? Which is the best place to open demat and trading account? what is the difference between demat and trading account?

Which is the best place to open demat and trading account? But before that lets us know what is demat and trading account.

A Demat Account holds all the investments an individual makes in shares, government securities, exchange-traded funds, bonds and mutual funds in one place. In short, a demat account is the repository where the digital copies of your stocks can be stored and managed. 

There are 3 main types of demat account - 

•Regular Demat Account: A regular demat account used by investors residing in India.

•Repatriable Demat Account: A demat account used by NRIs under which funds can be transferred abroad. 

•Non-Repatriable Demat Account.A demat account used by NRIs under which funds cannot be transferred abroad. 

Much like a Demat account, a trading account is also vital for investing in the share market. Trading account helps you electronically to buy and sell shares or other securities in the stock market. 

A trading account can be any investment account containing securities, cash or other holdings.

There are 6 types of trading account in India:-

• Equity demat account-  this is one of that demat account which is used for keeping shares in electronic form.

• Equity and derivatives trading account. This account is opened with a stock broker of recognized stock exchange of India like National Stock Exchange or Bombay Stock Exchange.

• Commodity demat account. This is one of those demat account types that are used in commodities trading. If one wants to trade in commodities future, then the settlement can be done either through cash or by the delivery of the commodity.

•Commodity trading account. A commodity trading account is opened with a commodity broker registered with a recognised commodity exchange in India.

• Discount broking account. Discount brokers trades very huge volumes at very low cost. They only offer the  execution of trades rather than this they donot provide  any additional perks.

• Full service trading account. It offers a number of services other than plain execution of trades .

Difference between demat and trading account:-

A trading account is used to place buy or sell orders in the stock market. Demat means dematerializing shares into digital format rather than on physical paper.

The demat account is used as a bank where shares bought are deposited in, and where shares sold are taken from. You will get a single account for demat & trading.

The best demat account with lowest brokerage in India 2020 are-

1. Upstox demat and trading account.

2. Zerodha demat account.

3. 5Paisa demat account.

4. Angel broking demat account.

5. Sharekhan demat and trading account.

6. Religare demat account.

7. Motilal oswal demat account.

8. Ventura Securities.

9. ICICI Direct demat and trading account.

10. SBICap securities.

11. HDFC security.

1. Upstox is one of the best discount brokers in India due to cheap brokerage charges, advanced technology platforms, and high margins. Upstox charges a fixed brokerage of Rs. 20 per trade.You can save a good amount compared to other full brokers.

Why Upstox is at number #1

•Free account opening 

•Zero brokerage for 30 days 

•After that only Rs 20/trade 

•Zero stock deliver brokerage 

•Fast account opening process 

•Great trading platforms with advance tools.

2. Zerodha is the largest and most trusted discount broker. The biggest reason for Zerodha’s success is its customer support which is better than all other discount brokers. Zerodha's lower brokerage charges of 0.01% or Rs 20 per executed order. 

Why Zerodha is at #2

•Most trusted broker in India

•Fix Rs 20/trade on intraday 

•Zero brokerage on the stock delivery  

•Good customer support 

•Best charts and tools for technical analysis.

3. 5Paisa charges the lowest brokerage charges of flat Rs 10. per trade. You can place a single trade worth crores and pay brokerage of just Rs 10 per trade. 5Paisa Mobile app is also the best mobile app in India in terms of good and easy usability, experience and fast speed.

Why 5Paisa is at #3

•Lowest brokerage charges of Rs 10/trade

•Zero brokerage on delivery 

•Fastest account opening process 

•Offers the best trading app with easy to use. 

4. Angel broking is one of the oldest brokerage companies in India having established network branches in over 900 cities. Angel broking‘s customer care service is up to the mark.  Angel broking is recommendable only if your adhar card is linked with your mobile number.

5. Sharekhan is one of the leading online brokerage company having more than 12 lakh customer base.

Account Charges of Sharekhan account

•Trading Account Opening Charges – Nil

•Demat Account Opening Charges – Nil

•Annual Maintenance Charges – Upto 750 (depend on the balance keep).

6. Religare securities Ltd. (RSL) is a wholly owned subsidiary of religare enterprise.

Account Charges

•Demat Account Opening Charges – Nil

•Trading  Account Opening Charges – Nil

•First Year Annual Maintenance Charges – Nil

•Annual Maintenance Charges From 2nd Year –  Rs 500

But remember you can avail lifetime AMC free account with one-time payment of Rs.2500.

7. Motilal Oswal provides a huge number of services.Motilal Oswal’s solid research-based advice is the reason for such a strong customer base. They spend Around 10% revenue on research and on hiring & training for research. But is recommended that their stocks are less helpful. Still it's as recommendation, it all depends on you.

8. Ventura is a full service broking company which provides service to clients to invest in equity, equity derivatives, commodities, mutual funds, fixed income products and currency futures. As their tag line says," kyuki bhaiya, sabse bada rupaiya". Ventura's window based  trading platform is also good.

9. ICICI direct is one the largest share brokerage company. ICICI Direct provides a wide range of services and investment options. The options includes.

•Investment in equities, derivatives, mutual funds, 

SIP, IPO, NCD & bonds, ETF and currency.

•Wealth products.

•Home loans & loan against securities.

10. SBICap offers investment banking services which includes

•Capital Markets

•Broking Services

•Financial Engineering

•Resource Mobilisation through Capital Markets.

Account Charges

*Account Opening Charges -Rs 850

*Account Annual Maintenance Charges –  Rs 800

11. HDFC security limited is a subsidiary of India’s largest private bank HDFC. 

Account Charges~

•Account Opening Charges -Rs 0

•Account Annual Maintenance Charges –  Rs 750 ( free for first year).

Note- the reference used here like uses and account charges are direct analyzed by exploring the internet. 

 

For the best experience, zerodha is recommended as the best option for opening a demat and trading account.