Hey, are you a beginner at marketing? Are you looking to keep your shares and securities electronically? You have come to the right place. This article will help you to choose the best Demat account Facility In India and the best Demat account provider.
What is a Demat account?
A Dematerialized account or Demat account holds the shares and financial securities in electronic form. A Dematerialized account is like a bank account but the difference is that the bank account holds money whereas the Dematerialized account holds the share and securities.
Why choose the Demat account?
A Demat account is bringing innovation to marketing by electronically transferring and receiving the shares and securities. The electronic transfer of share and securities doesn’t require physical share certificates.
Advantages of Demat account:
- The Demat Account transfers the share and securities at lower transaction charges.
- It has made the transaction easier.
- For electronic transfer of share and securities physical share certificates are not required.
- The transactions made through Demat accounts are easy, safe, and secure.
- It provides the facility of auto-update and auto credit of bonus shares and stock split.
Several Demat account providers in India are providing the services. Choosing the best according to your need is a little bit tricky task. The best Demat account can be chosen on the base of brokerage charges, account opening charges, number of active users, or AMC charges.
Types of Demat account
The Demat account has the following types in India.
- Regular Demat account
- Repatriable Demat account
- Non-repatriable Demat account
Regular Demat account:
If you are a regular citizen of India and looking for a Demat account in India then choose this one. This account is specially designed for the regular citizen of India interested to do trading electronically.
Repatriable Demat account:
If you are a regular citizen of India or residing in India then a repeatable account will not suit you. This account is designed for the non-residential Indian. It is used for transferring funds abroad. But for opening a repatriable account you’ll need an NRE bank account
Non-Repatriable Demat account:
This account is specially designed for the NRE for transferring funds within the country. Yes, the funds in Non-Repatriable accounts can’t be transferred abroad.
Best Demat Account In India
After a rigorous study of more than 100 parameters related to the Demat account opening, here we have discussed the major five parameters that will help you to choose the best Demat account in India.
- Demat Account for Intraday Trading
- Demat account for IPO
- Demat account for low brokerage
- Demat account for investors
- Best Demat account bank
- Best Demat account for mutual funds
Demat Account for Intraday Trading:
Intraday means within a day. When the purchasing and selling process of the share is done within the same day then it is called intraday trading. The intraday trade is directly related to the company’s revenue, so according to this perspective, it is the most important parameter for choosing the best Demat account. The best things in intraday trading are the trading platform features and brokerage charges. Many of the companies try to tempt the intraday trade for the Demat account.
Following are the intraday trading Demat account providers:
The leading provider according to this parameter is 5paisa with its lowest brokerage charges. The 2nd leading provider according to this parameter is Zerodha with its trading platform and lowest brokerage charges.
Demat account for IPO:
Initial public offering or IPO is a very simple process where the investor just needs to fill a form before preceding the investment. The main advantage of the IPO Demat account is the form filling process. As convenient, the form filling will be the more comfort the client will get.
The following are the Demat account providers for IPO:
Demat account for low brokerage:
Low brokerage is the best parameter that derives most of the investors toward it. If you are looking to invest in Indian and looking for the best Demat account then go with this parameter.
Following is the list of Demat account provider with the lowest brokerage:
- Angel broking
Demat account for small investors:
Are you looking for an investor with a small volume investment? After long research, we have found the best Demat provider according to this parameter. A small investor can be a person looking forward to a long term investment or maybe to save tax.
Following is the list of Demat account for small investors:
- Angel broking
Best Demat account bank:
The safest and straight forward parameter of the Demat account. Many of the people are choosing the Demat account for safety purposes as they trust their banks for transferring and receiving the funds. Due to the relation of this parameter with safety, it is extremely important.
Following is the list of Demat account bank providers:
- Kotak securities
- ICICI Direct
- HDFC Securities
- Angel broking
Best Demat account for mutual funds:
It is a pool of money collected from the investors for investing in shares and securities. Mutual funds can be used to invest in assets, bonds, stocks, or investment.
Opening a Demat account for mutual funds is not compulsory as you can receive the funds without the Demat account. But if you want to transfer or receive the mutual funds electronically then opening the Demat account will benefit you.
Best Demat account for Beginners
Are you a beginner and looking for a Demat account for trading. Well, it is a smart choice. Demat accounts make trading easier by doing it electronically. While choosing the best Demat account for beginners you must have to consider the various parameters affecting trading. There are many Best Demat Account Facility Provider In India available, each having some specific characteristics.
The selection of a Demat account depends on the needs or requirements of the client. The best Demat accounts are those with the lowest brokerage charges, lowest account opening charges, and small investors.
You must look for the easy to open Demat account with low annual maintenance and trading charges and having a user-friendly interface.