Demat account can be considered to be the get way to the world of investments. If you want to invest in the Indian financial markets, it is mandatory to have a demat account. There are various demat service providers India offering demat accounts to investors.
With the increasing competition amongst demat service providers, investors are often confused when it comes to the best demat service provider. Well, you should check your demat service provider based on certain criteria, the most common one being the charges. Apart from the brokerage charges, demat service providers charge account opening change and annual charge in the form of annual maintenance charges (AMC). When you open a demat account it is very important to ask your service provider about these charges as they vary across providers.
However, there are various demat service providers which offer a free demat account to the investors. It does not mean that there will be no brokerage charges with the account. These service providers do not charge any account opening fee to the investor, which makes the account free. You need to pay the brokerage charges as applicable whenever you place and order.
Today, we will take a look at some of the demat service providers who are offering a free demat account to the investors.
Table of Content
Free Demat Account Companies in India
Upstox
Upstox is a relatively new stock broking service based out in Mumbai, Maharashtra, India. Initially known as RKSV securities, Upstox is offering investors with absolute zero charges on new account opening. They levy an annual maintenance charge of INR 300 per year.
Upstox offers a very competitive brokerage rate of zero for delivery and flat 20 Rs or 0.05% for intraday and all other segments.
5 Paisa
5 paisa do not actually provide a free demat account, however an investor can get a refund of the account opening fee of Rs 650 if you make a deposit of minimum Rs 5000 in your account at the time of account opening.
5 paisa do not offer zero brokerage and charges flat 20 Rs for all executed orders. They also charge an annual maintenance charge of Rs 400 per year.
FYERS
FYERS securities is a Bengaluru based broking and demat service provider, who is offering free demat accounts to investors. The demat accounts will be charged annually for Rs 400 as the annual maintenance charge.
FYERS is offering competitive brokerages to all investors and do not bill any charge for delivery trades. Other trades are charged at 0.03% or 20 Rs per trade whichever is lower.
India Infoline (IIFL)
India Infoline was established in 1996 and is a very reputed name in the Indian broking and demat service industry. Also known as IIFL, they do not charge any account opening fee from the investors. The annual charge for the first year is also free. However, from second year onwards, you need to pay an annual maintenance charge of Rs 450 per year.
IIFL securities charges absolute zero brokerage for all delivery trades and flat Rs 20 or 0.05% (whichever is lower) for all other segments.
Angel Broking
ICICI direct is a familiar name because it was the one who popularized the concept of online trading in India. They used to be the largest stockbrokers of India, until Zerodha overtook them. They have a client base of over 20 lakhs and have been one of the most expensive stockbrokers of India.
They charge an account opening fees of 975 and an annual maintenance charge of INR 700 annually from the first year itself.
Sharekhan
Established as a brokerage division of the largest public sector bank of India – HDFC, it was established in the year 2000. They serve over 17 lakh customers from over 185 locations in India with a branch count of over 2500. HDFC hold a good reputation in the banking sector and the same is utilized by HDFC securities.
They charge a trading account opening fee of INR 999 and Demat account maintenance charges of INR 750 annually from the first year.
Conclusion
These are some of the leading stockbrokers in India who are providing a free demat account to the investors. Once you have your demat account you are all set for stepping into the financial market and making your investments. You may also take the services of a registered advisor who can provide you research based recommendations for investing in the markets. You must always remember that financial markets do come with their own set of risks and whenever you make an investment there is always a certain amount of risk associated with it.
Happy Investing!
