Investment Strategies

The Best Demat Trading Accounts

Thomas Reichhart / Shutterstock

Have you always dreamed of investing your money in the stock market? For decades, Indians didn’t have the opportunity to do this. Only those in India’s most exclusive tiers of society – the wealthy – were able to purchase stocks and make money through investments. But today, everything is changing. And now, even the average Indian can get into the stock market.

Stock trading in India has long been incredibly complicated. It required paper share certificates, physically participating on the stock trading floor, and a broker’s help. But now, anyone can invest. Anyone can start trading in the stock market, right over the internet. And it’s all thanks to demat trading accounts.

Any ordinary person can join India’s stock market and begin investing. You don’t need to be a broker. You just need a demat trading account to securely trade stocks online.

What is a Demat Trading Account?

Demat trading accounts are very similar to bank accounts – but there’s one big difference. 

The purpose of a demat account is to transfer money into stock market investments. Created just for investors, demat accounts hold funds, shares of stock, and all of your electronic investment information.

Here’s how a demat account works. You deposit money into the account and purchase stocks. The stocks are dematerialized, or converted into an electronic format. All of your transactions are recorded and held within the demat account. And your demat account number is your security, your proof of ownership, for the stocks you purchase.

You can open a demat trading account with a zero balance and no shares. All you need to get started is your PAN card, proof of identity, proof of residence, a cancelled cheque, and a photo. Indians can choose between two different depositories when opening a demat account: the National Securities Depositories Limited (NSDL) or the Central Depository Services Limited (CDSL). The depository you choose will hold onto your shares of stocks. 

From there, you can begin trading and investing.

The Benefits of a Demat Trading Account

There’s one huge benefit to opening a demat trading account. With this type of account, anyone in India can finally participate in the stock market. You can buy shares of stock and trade easily, all online.

But that isn’t the only perk to a demat trading account. While these accounts are a necessity for anyone who wants to participate in India’s stock market, they also bring additional benefits.

Previously, anyone who invested money in India’s stock market had to do so physically, There were no online or easy options – you had to have physical shares and be present on the trading floor. But with a demat account, investing is so much easier. The paperwork, lengthy verification process, and security risks are all eliminated.

Demat accounts also make stock trading happen quickly and conveniently. You don’t need to leave home to purchase or sell stocks. As long as you have an internet connection, you can participate in trading. As soon as your demat account is open, you’re an investor. And actions like holding, monitoring, and trading are easily completed in just minutes.

Additionally, you’ll enjoy even more benefits like these:

  • Reduced Risk: Putting your securities online eliminates the risk of loss, theft, or damage. Everything is electronic and securely stored online with a demat account.
  • Lower Costs: Demat accounts come with lower trading and investing costs. None of the costs that come with physical trading, like stamp duties and handling fees, exist.
  • Increased Flexibility: There are limitations on how Indians can purchase and sell stocks via physical certificates, and there are rules on the quantity of these investing moves. But with a demat account, these restrictions are eliminated.
  • Easy Holding: All of your investments are conveniently and automatically stored in a single account. You can track performance and earnings in seconds.

Overall, demat trading accounts make investing in the stock market easy and accessible. If you’ve long waited to invest and trade, you’ll enjoy how simple it is to do exactly that with a demat account.

The Best Demat Accounts

Demat accounts are a great financial product for Indians. They allow absolutely anyone to begin investing. But before you can start purchasing stocks and growing your money, it’s important to choose the right demat account.

Now that investing is more widespread, you have options. There are a number of different demat trading accounts available, and you can choose where you’d like to invest. But no two demat trading accounts are the same. 

That’s why it’s important to do your research and choose the best possible demat trading account. If you’re looking for the best of the bunch, check out the following top options.

ICICI Direct

ICICI is one of the best-known financial services companies in all of India. And if you’re looking to start investing in stocks for the first time, ICICI offers the ICICI Direct demat trading account. It’s a fantastic option for new investors, as it’s paired with all of the other stock trading resources and services available with ICICI. With both a physical and online presence, Indians will have no worries or concerns. ICICI Direct accounts make it easy to transfer funds and get started as a first-time stock trader. 


Upstox is a popular name in demat accounts. With a strong, trustworthy background – Upstox has rapidly become one of India’s biggest brokerage firms – and the backing of international investors, this is one demat account everyone should consider. Upstox offers low-cost investing and trading, and all stocks traded are free from brokerage charges. With an Upstox demat account, you’ll automatically be able to choose the segments you’re interested in trading within.


Zerodha is a great brokerage to consider for your demat trading account. This company was one of the first in all of India to offer discounted brokering. And with Zerodha growing continuously, it’s a smart move to invest now. Zerodha is leading the way in India’s stock market, with new technology available for demat account holders, an average daily trading turnover of Rs 10,000 crores, and quick and instantaneous demat account opening.

Start Investing and Trading With Your Own Demat Account

If you’re ready to become an independent investor, there’s no better time than right now. And with demat trading accounts available for anyone in India, you can start today. 

Demat trading accounts allow you to join the global and Indian stock markets. With one of these accounts open, you can begin purchasing and trading stocks as you’d like. But, before you can begin trading, you need to do your research.

Make sure you consider different demat trading accounts. Search for the best demat accounts available, and compare them to one another. Determine which offer the lowest costs and biggest benefits for you as a new investor. With the best demat account possible, you’ll be prepared for successful stock trading now and into the future.

Thomas Reichhart / Shutterstock