Today stocks are purchased online without any paperwork. The same is true for securely storing the stocks and other securities digitally via a Demat account.
The Demat account acts like a digital wallet where you can store not just shares, but also other investments like bonds, or mutual funds.
Having the best Demat account is crucial as it helps to keep your investments safe from things like cyber attacks and theft. In this blog, we will help you find the perfect Demat account.
How to Know Which Demat Account Is Best?
All demat account providers offer a range of services with their demat accounts. When it comes to picking out the right one for yourself, it’s important to consider which demat account is best.
Here are four things to help you decide –
1. Low Brokerage Fees
One of the main factors to look at is the brokerage costs. This includes charges for various services like buying, selling, consulting, negotiating and delivery of stocks.
As these charges can take up most of your overall returns, it’s essential to find a Demat account provider that offers these services at a competitive rate.
2. Easy to Use
From opening the account to actually using it for trading, the process should feel smooth and seamless. You should also look for a demat account that offers a user-friendly interface for trading.
This includes having an effortless linkage between your broking, banking, and trading accounts. Additionally, the brokerage firm or bank should offer 24/7 customer support to all its Demat account holders.
3. Advanced Guides and Data Analytics
Many brokerage firms like Dhan walk that extra mile to offer online guides, and training resources for their customers to gain a deeper knowledge of trading and investing.
Furthermore, many firms provide advanced data analytics tools like real-time valuation and direct call-to-action requests to help investors make informed investment decisions.
Having access to such services makes choosing the best Demat account in India easier.
4. Investment Options
Investors are advised to opt for a demat account with a brokerage firm that offers a diverse range of investment options from equity, futures, options, and mutual funds, to bonds.
Having access to a wide variety of investment opportunities allows for diversification with a single account. This strategy helps mitigate risks and generate profits even during economic downturns.
Which Is the Best Demat Account In India?
When it comes to finding out which demat account is best in India, Dhan’s Demat account stands out as the top choice. With Dhan, opening a Demat account is quick and easy.
Here is what makes Dhan better –
1. Account Opening and Brokerage Charges
Account-Related Charges –
| Type of Charge | Amount (₹) |
| Account Opening Fees | ₹ 0 |
| Annual Maintenance Charges | ₹ 0 AMC |
| DP Transaction Charges | ₹ 12.50 / instruction / ISIN + GST |
| Interest Charges | 0.0438% per day on outstanding MTF and non-MTF debit |
Brokerage and Other Charges
| Charges | Equity (Delivery) | Equity (Intraday) | Equity (MTF) |
| Brokerage Charges | ₹0 (Zero Brokerage) | ₹20 or 0.03% per executed order, whichever is lower | ₹ 20 or 0.03% per executed order, whichever is lower |
| GST | 18% on brokerage + transaction charges + SEBI Turnover fees | 18% on brokerage + transaction charges + SEBI Turnover fees | 18% on brokerage + transaction charges + SEBI Turnover fees |
| Securities Transaction Tax (STT) | 0.1% on buy & sell | 0.025% on sell transactions | 0.1% on buy & sell |
2. Discounts for Women
Dhan offers its female customers a 50% discount on brokerage charges, reducing their fee to ₹10 per trade instead of the standard ₹20 per trade. However, if anyone violates this initiative, the fee will be converted to its standard ₹20 per trade amount.
3. 4x Leverage with Dhan
With Dhan, traders can get up to 4x leverage, meaning they can trade with about 75% margin funding on over 1000 stocks. This is great for swing traders, BTST traders, or anyone who wants more margin.
Dhan provides up to 75% of the funds needed for the trade, with you putting in only 25%.
For example, if you have ₹5000 and see a market opportunity, Dhan can provide an extra ₹15,000, giving you a total of ₹20,000 to invest.
You can hold your positions for as long as you want, and Dhan will never incur any hidden charges from you.
4. Trading Features
Dhan offers a variety of features to its investors from TradingView charts, over 100 indicators, drawing tools, custom charts, place orders for puts and calls, drag and drop options, second chart timeframe, and much more.
5. Zero Cost API
Dhan provides free trading APIs for all users, but for their data API, which includes Live Market Feed and Historical Data, they charge ₹499 plus taxes per month.
To get access to Dhan APIs, you must have executed at least 25 trading orders in the last 30 days.
Conclusion
To sum up, Demat accounts make trading in the stock market easy and safe. However, it is important to understand your requirements and select a Demat account provider that fulfils them.
📌 You can also read:
- Where Should You Open a Demat Account?
- 5 Factors to Keep in Mind Before Opening a Demat Account
- How To Transfer Shares From One Demat To Another?
Happy Investing 💰
Disclaimer: This blog is not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing.
