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What Is a Demat Account?
A demat (dematerialized) account holds your shares and securities in electronic form. It is mandatory for trading stocks, ETFs, bonds, and mutual funds on NSE and BSE. Think of it as a bank account for your investments. Every Indian trader needs a demat account linked to a trading account and a bank account to start investing.
The demat account is maintained by one of two depositories: NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited). Your broker acts as a Depository Participant (DP) and provides the interface for you to access your demat account. The choice of depository does not affect your trading experience.
Key costs associated with a demat account include: Annual Maintenance Charge (AMC), transaction charges per trade, pledge/unpledge fees, and dematerialization charges. In 2026, competition among brokers has driven most of these fees to near zero for retail investors.
2026 Demat Account Comparison
| Broker | AMC | Delivery Brokerage | F&O Brokerage | Account Opening | App Rating |
|---|---|---|---|---|---|
| Zerodha | Rs 300/year | Zero | Rs 20/order | Free | 4.4/5 |
| Groww | Zero | Zero | Rs 20/order | Free | 4.5/5 |
| Angel One | Rs 240/year | Zero | Rs 20/order | Free | 4.2/5 |
| Upstox | Zero | Rs 20/order | Rs 20/order | Free | 4.1/5 |
| ICICI Direct | Rs 750/year | 0.275% | Rs 20/order | Free | 4.0/5 |
| HDFC Securities | Rs 750/year | 0.15% | Rs 20/order | Rs 999 | 3.9/5 |
For cost-conscious traders, Groww and Upstox offer zero AMC demat accounts. Zerodha charges Rs 300/year but offers the most comprehensive platform. ICICI Direct and HDFC Securities charge higher fees but provide 3-in-1 accounts (bank + demat + trading) which is convenient for investors who already bank with them.
Demat accounts cover NSE and BSE. But if you also want to trade forex, gold, or global indices -- instruments not available on Indian exchanges -- you need an international broker account alongside your demat. XM lets you start with Rs 420 via UPI and trade 1,000+ instruments on MetaTrader 5.
See XM Account TypesZerodha Demat Account
Zerodha is India's largest broker with over 1.5 crore active clients. Their demat account through CDSL costs Rs 300/year AMC. Zero brokerage on delivery trades and Rs 20 flat per F&O order. The Kite platform is fast, reliable, and has excellent charting. Zerodha also offers Coin for mutual funds, Varsity for education, and Sensibull for options analytics.
Pros: Best platform (Kite), zero delivery brokerage, excellent API for algo traders, Sensibull integration. Cons: Rs 300 AMC, no phone-based trading support, customer service can be slow during market hours. Ideal for active traders and tech-savvy investors.
Groww Demat Account
Groww has rapidly grown to become India's second-largest broker. Zero AMC demat account with zero delivery brokerage. The app is clean, beginner-friendly, and integrates stocks, mutual funds, fixed deposits, and digital gold in one place. Groww uses CDSL for demat services.
Pros: Zero AMC, zero delivery brokerage, excellent app design, great for beginners, integrated mutual fund platform. Cons: Limited charting tools, no desktop platform, F&O features less advanced than Zerodha. Ideal for beginners and long-term investors.
Angel One Demat Account
Angel One (formerly Angel Broking) offers a feature-rich demat account with Rs 240/year AMC. Their Smart Money platform provides AI-powered trade recommendations. Zero delivery brokerage and Rs 20 per F&O order. Angel One supports stocks, F&O, commodities, and currency derivatives.
Pros: Smart Money AI recommendations, strong research, good mobile app, low AMC. Cons: Occasional app slowdowns during peak hours, aggressive upselling of premium services. Ideal for traders who want broker research and recommendations.
Upstox Demat Account
Upstox offers zero AMC demat accounts with competitive brokerage. Backed by Tiger Global and Ratan Tata, Upstox has invested heavily in their Pro platform which offers advanced charting and a customizable interface. Demat account through CDSL.
Pros: Zero AMC, Upstox Pro platform, good charting, competitive pricing. Cons: Rs 20 charge even on delivery, customer service quality varies, less intuitive than Groww for beginners. Ideal for active traders who want advanced tools without AMC.
How to Open a Demat Account in India
Opening a demat account in India takes 15-30 minutes online. You need: PAN card, Aadhaar card (linked to mobile for e-KYC), bank account details, and a cancelled cheque or bank statement.
Step 1: Visit your chosen broker's website or app. Click 'Open Account' or 'Sign Up'.
Step 2: Enter your mobile number and verify via OTP. Enter your PAN number for identity verification.
Step 3: Complete Aadhaar e-KYC by entering your Aadhaar number and verifying via OTP sent to your Aadhaar-linked mobile number.
Step 4: Upload your signature (on white paper, photographed) and complete a selfie verification.
Step 5: Link your bank account by uploading a cancelled cheque or bank statement. Some brokers verify via penny drop (Rs 1 credit to your account).
Step 6: E-sign the account opening form using Aadhaar-based digital signature. Your account is typically activated within 24-48 hours.
You just read all six steps to open a demat account. If you also want to trade forex after NSE hours -- the market runs 24/5 -- Exness processes UPI deposits and withdrawals instantly. No waiting for T+1 settlement like with equity.
Try Exness Instant WithdrawalsFrequently Asked Questions
What is the cheapest demat account in India?
Groww and Upstox offer zero AMC demat accounts, making them the cheapest to maintain. Groww also offers zero delivery brokerage, making it the most cost-effective option for investors who primarily buy and hold stocks.
Can I have multiple demat accounts in India?
Yes, SEBI allows you to open multiple demat accounts with different brokers. Many traders keep a Zerodha account for active trading and a Groww account for long-term investments. However, each account requires separate KYC verification.
How long does it take to open a demat account?
Online demat account opening takes 15-30 minutes with Aadhaar e-KYC. Account activation typically happens within 24-48 hours. Some brokers offer instant activation during market hours. You need PAN, Aadhaar, bank details, and a signature photo.
Is a demat account free in India?
Several brokers offer free demat account opening and zero AMC in 2026, including Groww and Upstox. However, you will still pay transaction brokerage when you buy and sell. Zerodha charges Rs 300 AMC per year, while full-service brokers like ICICI Direct charge Rs 750.
Groww for long-term investing, Zerodha for F&O, and an international broker for forex -- that is the setup most serious Indian traders end up with. The demat account handles one side. For the global side, both Exness and XM accept UPI and take 30 seconds to open.
Open XM Account for Rs 420