Best Demat Account India

What is a Demat Account?

Demat account, short form of demilitarized account is used to hold shares and securities in electronic form.

In India, it has now become mandatory to hold the shares in demat form only.

Some people still have share certificates in the paper, probably inherited from parents.They need to convert them into electronic form before they can be sold at stock market.

If you are one among them, you can contact any stock broker, they should be helping you through this.

Demat account has many advantages compared to earlier physical formats. I will write a separate article on that. Best part is, it is safe from events of damage and theft.

Stock Brokers are basically members of Depositories like NSDL and CDSL. Your shares are maintained by these depositories and even stock brokers goes bankrupt, you shares are safe with depositories.

Now many have confusion over what is the difference between Demat account and a trading account.

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.

Ranking for Best Demat Account In India for 2021:

To find the best demat account in India, I created a list of demat accounts from registered stock brokers, then ranked them by a set of parameters.


Brokerage Charges

Open Account

Zero for Delivery; Rs20/trade for all others

Zero for Delivery; Rs20/trade for all others

Rs 15/Executed Order

0.10% to 0.50%

0.04% to 0.40%Text

0.05% to 0.50%

0.05% to 0.55%

0.05% to 0.50%

0.049% to 0.49%

The above list is prepared by considering top 3 brokers each in the following categories.

  • Best Demat Account for Traders
  • Best Demat Account for Investors
  • Best 3-in-1 demat accounts

I have used below parameters to arrive at the above rankings:

  • Brokerage and AMC Charges
  • Trading Platforms including mobile app
  • Customer Support (Online/Offline)
  • Credibility of Sharebroker
  • Number of Customers
  • Margin/Leverage offered

Best Demat Account for Traders with Lowest Brokerage Charges:

Low brokerage demat account are for the ones who trade very frequently. Needless to say, brokerage is their main concern. Their profits would be eaten up by brokerage itself if they don’t choose the brokers well.

Discount brokers or flat fee brokers would be ideal for them through which one can save upto 90% when compared to fullservice brokers.

If you don’t know who is a discount broker: A discount broker is one who allow their customer to trade at reduced rates and provide only bare minimum infrastructure.

The discount brokers levy lesser brokerage charges for their demat and trading accounts.

Alice Blue, Upstox , TradeSmartonline are some of the well known discount brokers. Sharekhan, ICICIdirect and Motilal Oswal are some of the reputed traditional brokers who are good for investors.

How much you can save by choosing discount broker like AliceBlue/Upstox?:

For Investor:

Let us assume are planing to invest Rs 10 Lakh. With 0.55% brokerage of ICICI Direct, you have to shell out Rs5,500 in brokerage itself where as you pay nil in case of Alice Blue (Investments are free at Alice Blue).

Hence there will be 100% savings in brokerage charges when compared to brokers like ICICI Direct/Sharekhan.

For Trader:

Now let us see for intraday and Futures traders, how much can be saved.

Let us assume you buy Rs 10lakh and sell 10lakh worth of shares daily. That means in around 20 trading days of month it will be 400 lakhs.

ICICI Direct charges 0.0275% hence the brokerage charges per month is Rs400Lakh * 0.0275% which is Rs 11,000.

So yearly it would be,

Rs11,000 * 12 months = Rs 1,32,000

Now AliceBlue charges Rs 15/trade for intraday. Zerodha/Upstox charge Rs 20/trade for intraday. In Alice Blue, brokerage is not based on trade value. For each order they charge Rs15 irrespective of trade value.

Hence per day it would be Rs 30 (Rs15 for buy and Rs15 for sell) and for each month it would be 20* Rs30 = Rs 600

So per year it is Rs 600 * 12 months = Rs 7,200

Hence, traders can save more than 90% of brokerage and indirectly add to their profit

#1. Alice Blue Demat Account



Alice Blue is a biggest stock broker of India based out of Bangalore. They are the first to introduce the discount brokerage concept in India.

Myself opened an account with them in 2012 just to try out. Initially, I did not park much of my money as I was concerned about the safety of my money.

It was the case with most of the traders, but Alice Blue built their reputation over time and people started accepting them gradually.

Today they have even overtaken the most reputed and well-established names such as Sharekhan and ICICI Direct to become No.1 in India.

Best part of Alice Blue is they don’t charge brokerage for delivery based trades. For intraday and derivative trading they charges Rs 15/executed order.

Their main business comes from derivatives and hence they have waived off delivery brokerage to attract more customers. Hence, Alice Blue offers Zero brokerage demat account for all investments.

But only drawback I found was of not having monthly unlimited plans.

Alice Blue Brokerage Structure:
Segment Alice Blue Brokerage Charges
Equity Intraday Rs 15/order or 0.01% whichever is lower
Equity Delivery No Brokerage
Equity Futures Rs 15/order or 0.01% whichever is lower
Equity Options Rs 15/order
Currency Futures Rs 15/order or 0.01% whichever is lower
Currency Options Rs 15/order or 0.01% whichever is lower
Commodities Rs 15/order or 0.01% whichever is lower
Alice Blue Account Opening and AMC Charges:
  • Trading Account Opening Charges (One time) : Nil
  • Demat Account Opening Charges (One time) : Rs 0
  • Trading Account Maintenance Charges : Rs 0
  • Demat Account Maintenance Charges (AMC) : Rs 400 per year

More information about Alice Blue account opening and DP charges here.

Following are the some of the features which I likes and disliked about Alice Blue:


  • Free delivery based trades and maximum of Rs15/trade in other segments
  • First Discount broker of India and Best discount broker with highest number of customers
  • Taken initiative to educate common investors through open platform Alice Blue Trade School
  • State of the art trading platforms such as Ant Mobi
  • New direct mutual fund investment platforms


  • Call and trade is chargeble at Rs 15
  • 3-in-1 demat account possible only if you have IDFC First bank Savings account

I have written detailed review of Alice Blue discussing their account opening fees, brokerage plans, trading platforms and exposure margins.

Alice Blue Account opening is completely online and 100% paperless if your mobile number is linked to aadhar number. It can be opened in 15 min. Please go through the step by step procedure of opening Account with Alice Blue.

Like to contact them for any queries?, Request call back through the below button,


#2. Upstox Demat Account

Upstox is another leading discount broker based out of Mumbai. They are no 2 after AliceBlue and formerly known as RKSV Securities.

Their brokerage structure is more or less copy of Zerodha. Initially they had monthly unlimited plans but taken them out.

They also charge Zero brokerage for delivery trades and Rs 20/trade for executed order. Account opening is also free with them.

They are backed by some of the reputed names such as Mr.Ratan Tata.

You can read detailed review of Upstox here.

Upstox Brokerage Structure:
Segment Upstox Brokerage Charges
Equity Intraday Rs 20/order or 0.01% which ever is lower
Equity Delivery No Brokerage
Equity Futures Rs 20/order or 0.01% which ever is lower
Equity Options Rs 20/order
Currency Futures Rs 20/order or 0.01% which ever is lower
Currency Options Rs 20/order or 0.01% which ever is lower
Commodities Rs 20/order or 0.01% which ever is lower
Upstox Account Opening and AMC Charges:
  • Trading Account Opening Charges : Fee
  • Demat Account Opening Charges : Free
  • Trading Account Maintenance Charges : Rs 0
  • Demat Account Maintenance Charges (AMC) : Nil for first year and Rs 150 from second year onwards

Other advantages and disadvantages of Upstox are,


  • Zero commission on delivery trades
  • Free Demat account opening and lower annual maintenance charges
  • Maximum Rs20 Per trade for non delivery trades
  • Backed by likes of Mr.Ratan Tata
  • Superior Trading platform Upstox Pro


  • Pricing is almost similar to Zerodha
  • Call and trade is chargeable
  • 3-in-1 demat account possibel only if you have IndusInd bank Savings account

You can contact them though the button below,

Once you enter the details, you will receive the OTP on mobile. After entering the OTP,  please enter PAN number in next screen.

Sales team will assist you only if you enter PAN number. That indicates them that you are serious in opening the demat account.


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