A demat account is the first thing you need before you can buy a single share in India — it’s where your stocks, bonds, and ETFs are held electronically once you buy them. Which one is “best” depends heavily on what you’re actually using it for, so here’s a breakdown by use case rather than one blanket recommendation.
If you’re opening your first demat account, Groww and Zerodha are the two most commonly recommended starting points, for different reasons:
Both charge no brokerage on equity delivery trades (buying and holding, rather than intraday trading) and a flat ₹20/order (or 0.03%, whichever is lower) for intraday and F&O trades.
See the review on Groww Vs Zerodha
NRI demat accounts work differently from resident accounts — they need to be linked to an NRE or NRO bank account and require additional compliance documentation (PIS permission from the RBI, in many cases). Not every discount broker supports NRI accounts smoothly, so this is one case where it’s worth specifically confirming NRI support and the exact documentation process directly with the broker before assuming a popular resident-focused broker will work the same way for you. ICICI Direct and Zerodha are among the brokers with established NRI account processes, but requirements and support quality can vary — verify current NRI onboarding directly with the broker before proceeding.
If your primary goal is applying for IPOs rather than active trading, a few things matter more than raw brokerage cost:
Upstox is frequently recommended specifically for IPO applications, since it offers free account opening, a free first-year AMC, and a smooth UPI mandate flow with no brokerage cost for the IPO application itself. Zerodha’s Kite platform is also well-regarded here, particularly if you intend to actively trade the shares after listing rather than just apply and hold.
For F&O (futures and options) trading specifically, cost structure matters more than for simple buy-and-hold investing, since active traders generate many more transactions:
If you’d rather have your demat account with a traditional bank (for combined banking + investing in one place) rather than a standalone discount broker, options like HDFC Securities, ICICI Direct, and Kotak Securities are the major full-service choices. Be aware these typically charge 0.3–0.5% per trade — roughly 10-15x more expensive than a discount broker’s flat ₹20/order for the same delivery trade. The convenience of one login for banking and investing comes at a real, ongoing cost — worth it for some, not for others.
| Factor | Discount Brokers (Zerodha, Groww, Upstox, Angel One) | Full-Service Brokers (HDFC, ICICI, Kotak) |
|---|---|---|
| Equity delivery brokerage | Zero | 0.3–0.5% per trade |
| Intraday/F&O brokerage | ₹20/order flat or 0.03%, whichever is lower | 0.3–0.5% per trade |
| Research & advisory | Limited or self-serve | Dedicated relationship managers, research reports |
| Best suited for | Cost-conscious, self-directed investors | Investors who want hand-holding and advisory support |
To put the cost difference in concrete terms: buying ₹2.8 lakh worth of shares and selling with a modest 0.5% gain can be genuinely profitable through a discount broker, while the same trade can turn into a net loss once a full-service broker’s higher brokerage is factored in. Broker choice affects your actual returns more than most new investors realize.
Is there a single best demat account for everyone? No — the right choice depends on whether you’re a beginner, an active trader, applying for IPOs, or an NRI. Zerodha and Groww suit most beginners; Upstox suits IPO-focused investors; Angel One’s lower AMC suits active F&O traders; full-service brokers suit investors who want advisory support alongside execution.
Can I have demat accounts with more than one broker? Yes — many investors maintain accounts with multiple brokers to take advantage of different strengths (e.g., one for long-term holdings, another for active trading), though each account carries its own AMC and management overhead.
Do I need a demat account to invest in mutual funds? Not necessarily — mutual funds can be held either in demat form or through a separate folio-based structure depending on how you invest, but if you’re also planning to buy individual stocks, ETFs, or bonds, a demat account is required.
How much does it cost to maintain a demat account? This varies by broker — Groww charges zero AMC, while Zerodha and Upstox charge ₹300/year (often waived in the first year), and Angel One charges ₹240/year. Full-service brokers typically charge AMC on top of their higher per-trade brokerage.
👉 Looking for alternative investement check my review on Grip Invest
👉 Investing from UAE Check my review on Sarwa
