Share trading is a very happening side business for many people. For many others, it is their bread and butter. If you are also interested in trading in stocks and shares, it is best to get a Demat account ready. The purpose of this account is to hold your shares in an electronic format, thus reducing the paperwork required. Any physical shares owned by you previously also need to be converted to electronic format for easy accessibility.
A demat account is similar to a regular bank account. Instead of cash, the deposits are those of shares and stocks. The same gets debited when you sell them off. Other than shares, you can even store your other investments in the same account. You can open a demat account even if you do not wish to trade and can maintain zero balance. This would prove helpful when you do decide to have an investment portfolio of your own.
Choosing a demat account is the first step to share trading and should be done very carefully. You should understand all the terms and conditions such as the transaction fees and charges for opening and maintaining an account. You should also keep the factor of customer support in mind. The best Demat accounts in India are as below. Their account opening charges and annual maintenance charges have been tabulated for easy comparison.
|Transaction||Zerodha||Upstox||ICICI Direct||Motilal Oswal||Sharekhan||5paisa.com|
|Account opening||INR 100||INR 150||Nil||Nil||Included with trading account||Nil|
|AMC||INR 300||INR 150||Nil||INR 441||INR 400||INR 400|
Each of these have varying transaction charges depending on the amounts being traded everyday on different types of instruments.
- Zero brokerage for equity delivery transactions on BSE and NSE.
- 0.01 % or INR 20 on equity and equity futures
- INR 20 per order for equity options
- Variable STT or CTT charges
- GST of 18%
- Zero Brokerage stock investments
- 0.01 or INR 20 per trade
- Automatic trading account is opened with Demat
- ICICI Direct
- 0.04% or INR 25 as DP charges at the time of sale (higher)
- CDSL and NSDL levied separately
- Trading account AMC – INR 700
- First month – Free brokerage
- 0.03-0.015% brokerage for intraday trading
- 0.025-0.018% Brokerage of Equity Delivery Trading
- Trading account – INR 750 for classic, INR 1000 for Tiger a/c
- 0.1% brokerage for intraday trading
- Broke0rage of Equity Delivery Trading – 0.5% or 10 p per share or INR 16 per scrip
- Trading Account opening – INR 650
- INR 10 per executed order for intraday trading
- INR 10 per executed order of Equity Delivery Trading
These are the best demat accounts in India at the moment. There are other banks, which offer demat accounts along with trading accounts. You can check them as well, maybe you are meant to trade with another one. As and when you start trading, may you be very successful. There is profit and loss in the business and it is all a part of the game.