Top Picks For Best Demat & Trading Account in India 2020

Quick links to Open Demat And Trading Account

Frequently Asked Questions Regarding Demat & Trading Account in India

1) What is a stockbroker?

A stockbroker is an individual/organization who is a registered member of the stock exchange and are given license to participate in the securities market in place of its clients.

From big banking corporations like HDFC Securities, ICICI Direct, Kotak securities, etc to newer fastly growing startups like Zerodha, Fyers, etc all are examples of stockbrokers in India.

Stockbrokers can directly buy & sell stocks in the share market on behalf of their clients and charge a small commission for this service. However, the commission is minimal compared to the fast trading platform that they offer. Using these platforms, you can buy/sell stocks within minutes using your web/phone while sitting on your home sofa.

2) Do you need a stockbroker to trade in stocks?

Yes, you need a stockbroker to trade in Indian stocks.

You just cannot walk in the stock exchange to buy/sell your stocks. There are a lot of processes involved in the transfer and settlement of stocks for a satisfactory buying and selling experience of the participants. And here, stockbrokers plays an important role, along with the stock exchanges and regulators. Overall, you’ll need a stockbroker to trade in stocks.

3) What factors to check while selecting your stockbroker?

Brokerage charge is one of the biggest factors to look at while picking your stockbroker as an expensive broker can hurt you financially. Apart, the second biggest factor to check is the reputation of the stockbroker. A stockbroker with a long history of a reliable trading platform and good customer service should be preferred.

Besides, you need to look into their web and mobile trading platforms, advisory services (if you are looking for trading advice), customer service and other perks offered by that stockbroker like research reports, trading/investing education, etc.

4) Where should you open your demat and trading account?

If you are looking for multiple services like shares, mutual funds, bonds, currencies, fixed deposits, commodities etc along with research reports and do not mind paying a few extra bucks for additional services, then you should open your account with full-service brokers like ICICI direct, HDFC securities, etc.

However, personally, I believe that if you planning to trade just in stocks (or commodities), opening accounts with discount brokers is more advantageous. They offer a fast trading platform with a low brokerage charge which helps traders to save a lot of money. A few popular discount brokers in India are Zerodha, Angel Broking, Upstox, 5Paisa etc.

5) How to open your demat and trading account?

Opening your trading and demat account is completely online, paperless and hassle-free. If you already have the soft copies of your documents (PAN card, aadhar card and saving account passbook/check) on your mobile/laptop, you can open these accounts within an hour. Simply visit the stockbroker website and apply for an account.

Also read:

If you still have any queries regarding where to open your demat and trading account, feel free to comment below. I’ll be happy to help you out. Have a great day and happy investing!

I have submitted all my details still couldn’t get any confirmation email for client id how much time it takes to get demat account opening and its already been 24 hrs after all submission at angel broking

Thanks for the information.

Types of Demat account

As you might have understood what a Demat account is, let’s quickly find out its types and varieties and know-how they differ from one another

1. Regular Demat account

This is an ideal account if you are a residing Indian and want to store some of your securities or equities in electronic form. If you are interested in investing in IPOs, these accounts can be of use.

However, problems arise when you wish to sell them as you will need a trading account for the same.

Further, SEBI has brought into the picture a new regulation wherein a holder will not be required to address any maintenance charges if the holdings are less than 50,000.

2. Repatriable Demat account

If you are an NRI looking for an account that allows you to transfer funds from the country of your stay into India, then Repatriable accounts are the one for you. This account allows you to transfer up to 1 million USD in a year. However, you will need an NRE bank account for opening this sort of Demat account.

Non – Resident External or NRE account is a bank account which is based on rupee denominations, opened by an NRI to facilitate the various transactions with his or her home country.

3. Non- Repatriable account

This is also for those who are residing outside of India. However, unlike in the case of Repatriable accounts, the investor is barred from transacting any money from abroad. You will need to have an NRO account for opening a Non- Repatriable account.

Say, you are living abroad and wish to hold the stocks which you bought while you stayed in India then such accounts can be of use.

You can check out the brokerage of Kotak Demat Account & can open the trading & demat accounts.