Comparing Demat Account Opening Charges of Top Brokers in India

Choosing the right broker for a Demat account is crucial for any investor or trader. The pain points of high account opening charges and hidden fees can significantly impact your returns.

This article comprehensively compares top brokers in India and their Demat account opening charges to help you make an informed decision. This piece discusses the various factors to consider before opening a Demat account, comparing the charges of top brokers, and providing tips for reducing costs. 

Factors to Consider Before Opening a Demat Account 

Before comparing the Demat account opening charges of various brokers, it is essential to understand the factors influencing one’s decision. 

Brokerage Charges and Fee Structure 

• Different brokers have distinct fee structures. These include a fixed fee, a percentage-based fee, or a combination of both.
• Pay attention to the charges for equity, derivatives, and other segments.

Ease of Use and Platform Features 

• Evaluate the user interface and trading tools offered by the broker.
• Ensure the platform supports your preferred devices (desktop or mobile).

Customer Support and Service Quality 

• Research the quality of customer support provided by the broker.
• Check for online reviews and user experiences with the broker’s services.

Research Tools and Resources 

• Assess the availability of research reports and market analysis from the broker.
• Look for additional resources such as webinars, educational content, and expert advice.

Margin and Leverage Facilities 

• Compare the margin facilities and leverage options offered by different brokers.
• Understand the risks of using leverage and choose a broker that aligns with your risk appetite.

Top Brokers in India and Their Demat Account Opening Charges

Let’s look at the Demat account opening charges for some of the top brokers in India:

1. Zerodha:INR 200 for Demat and trading account opening, with a separate INR 100 charge for commodity account opening.
2. Upstox:Free account opening for a limited time, with an annual maintenance charge (AMC) of INR 300.
3. 5Paisa:Basic plan offers free account opening, while other plans have varying costs and benefits.
4. Sharekhan:Account opening charges vary depending on the chosen plan, ranging from INR 0 to INR 750.
5. ICICI Direct:INR 975 for a new Demat account opening, with a variable AMC, depending on the chosen plan.
6. HDFC Securities:INR 999 for account opening, with an AMC of INR 750.
7. Axis Direct:INR 900 for account opening, with an AMC of INR 750.
8. Motilal Oswal:Free account opening with an AMC of INR 441.
9. Angel Broking:Free account opening and INR 450 AMC.
10. IIFL Securities:INR 750 for account opening, with an AMC of INR 300.
11. Religare Broking: Account opening charge is free, AMC is free for 1st year, after 1st year AMC INR 400 + GST

Detailed Comparison of Demat Account Opening Charges

To make an informed decision, let’s compare the specific charges associated with each broker: 

Account Opening Fees

• Zerodha: INR 200
• Upstox: Free (limited-time offer)
• 5Paisa: Free for the basic plan
• Sharekhan: INR 0 to INR 750, depending on the plan
• ICICI Direct: INR 975
• HDFC Securities: INR 999
• Axis Direct: INR 900
• Motilal Oswal: Free
• Angel Broking: Free
• IIFL Securities: INR 750
• Religare Broking: Free of cost

Annual Maintenance Charges (AMC) 

• Zerodha: INR 300
• Upstox: INR 300
• 5Paisa: INR 540 for the basic plan
• Sharekhan: INR 400 to INR 1,200, depending on the plan
• ICICI Direct: Variable, depending on the plan
• HDFC Securities: INR 750
• Axis Direct: INR 750
• Motilal Oswal: INR 441
• Angel Broking: INR 450
• IIFL Securities: INR 300
• Religare Broking: Free for 1st year, after 1st year AMC INR 400 + GST

Note that the above numbers may change depending on the provider.

Brokerage Charges for Equity, Derivatives, and Other Segments 

• Zerodha: Zero brokerage on equity delivery, INR 20 or 0.03% per order (whichever is lower) for other segments.
• Upstox: Zero brokerage on equity delivery, INR 20 per order for other segments.
• 5Paisa: INR 20 per order for all segments in the basic plan.
• Sharekhan: Varies depending on the plan; ranges from 0.10% to 0.50% for equity delivery.
• ICICI Direct: Varies depending on the plan; ranges from 0.27% to 0.55% for equity delivery.
• HDFC Securities: 0.50% for equity delivery, INR 23 per contract for futures, and INR 100 per lot for options.
• Axis Direct: 0.50% for equity delivery, INR 20 per order for futures, and INR 10 per lot for options.
• Motilal Oswal: Varies depending on the plan; ranges from 0.25% to 0.50% for equity delivery.
• Angel Broking: Flat fee of INR 20 per order for all segments.
• IIFL Securities: Varies depending on the plan; ranges from 0.25% to 0.50% for equity delivery.
• Religare Broking: Delivery Free, Intraday if loss no brokerage, Intraday if profit 0.01% brokerage, Futures 0.01% and options INR 20 per lot.

Note that the above numbers may change depending on the provider.

Pros and Cons of Each Broker

It is essential to understand the unique features and limitations of each broker before making a decision:

Zerodha

• Pros: Low brokerage charges, user-friendly platform, extensive educational resources
• Cons: Limited margin facilities, occasionally technical issues during peak market hours

Upstox

• Pros: Zero brokerage on equity delivery, easy-to-use platform, competitive margin facilities
• Cons: Limited research tools and resources, customer support can be slow

5Paisa 

• Pros: Low-cost brokerage plans, multiple account options, Robo-advisory services
• Cons: Limited customer support, less intuitive platform compared to competitors

Sharekhan 

• Pros: Comprehensive research tools and resources, personalised advisory services, extensive product offerings
• Cons: Higher brokerage charges, complex fee structure

ICICI Direct 

• Pros: Integration with ICICI Bank accounts, robust research and advisory services, a wide range of investment options
• Cons: High account opening and maintenance charges, relatively higher brokerage fees

HDFC Securities 

• Pros: Seamless integration with HDFC Bank accounts, strong research and advisory support, a wide range of investment products
• Cons: High account opening and maintenance charges, higher brokerage fees compared to discount brokers

Axis Direct

• Pros: Integration with Axis Bank accounts, good research and advisory services, competitive brokerage charges
• Cons: High account opening charges, limited platform features compared to competitors

Motilal Oswal

• Pros: Robust research and advisory services, user-friendly platform, competitive margin facilities
• Cons: Limited product offerings for passive investors, occasionally technical issues

Angel Broking

• Pros: Low brokerage charges, good research and advisory support, user-friendly platform
• Cons: Inconsistent customer support, limited margin facilities

IIFL Securities

• Pros: Strong research and advisory services, competitive brokerage charges, a wide range of investment products
• Cons: High account opening charges, limited platform features compared to competitors

Frequently Asked Questions (FAQs) About Demat Account Opening Charges

Q: Is there a waiver on account opening charges?

A: Some brokers may waive account opening charges as part of promotional offers or upon negotiation.

Q: How do account opening charges differ between discount and full-service brokers?

A: Discount brokers typically offer lower account opening charges, while full-service brokers may have higher charges due to their additional services.

Q: Are there any hidden charges to be aware of when opening a Demat account?

A: Hidden charges may include transaction fees, dematerialisation charges, and call-and-trade charges. Review the complete fee structure before making a decision.

Summing Up

 Comparing Demat account opening charges is essential in choosing the right broker for your investment needs. While charges play a significant role in decision-makig, it is crucial to consider other factors, such as platform features, research tools, and customer support.

Conduct thorough research and choose the best broker that aligns with your financial goals and preferences.