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If one wants to invest in shares and stocks, first step is opening of Demat to hold shares in electronic forms and for trading of these stocks. One should be smart while choosing service provider for opening of Demat Account. There are different charges or fee of different service providers for Demat Account. A new investor or beginner should start with zero Account opening charges, or less brokerage charge or with low Annual Maintenance Charges (AMC). The Annual Maintenance Charges of Demat Account may vary from 300 to 700 and one can have more than one Demat Account but cost of maintaining these account will be separate. Hence initially to avoid AMC, one should keep all holdings in one trading account. One investor should go through the details of service provided by the Demat Account service providers for example some firms are providing relationship manager or stock market specialist to suggest the account holders all the information related to stock tips, investment advice, trading of shares and stocks.
Followings are the list of some of the Best Demat Account service providers for beginners:-
Zerodha is one of the biggest discount broker in India which offers Demat Account along with trading account. Zerodha is the best for small investors as it has lowest brokerage charges along with minimum account opening charges of Rs.100 and AMC charges is Rs.300 per year. They charged Rs.20 for delivery based trading.
Prostocks is registered under the Securities Exchange Board of India (SEBI). Prostocks is famous for offering discounts at trading to investors. It is 2 in 1 Account which includes a trading Account and a Demat Account for seamless transactions between the duos. One needs to make onetime payment of Rs.1000 only. It has zero account opening fees and no AMC.
- ICICI Direct Demat Account
It is one of the top financial Institutions of India which attracts huge investors for trading. The investors can open a Demat Account with ICICI direct as it offers 3 in 1 Account which provides Saving Account, Trading Account and Demat Account to Account holder and hence investors need not open separate account for trading and saving of fund. It charges Rs.975 as onetime payment for Account opening Charges. There are no Account Maintenance Charges for ICICI Direct Demat Account. It also provides personal help to its customer for financial trading of products offered by ICICI. However, its brokerage charges are relatively high which cause burden on investors of constant trading.
Sharekhan is one of the popular stock brokerage firms and it has almost its branches in 550 cities across India and it also has an international presence through its branches in the UAE and Oman. Beginners may opt to open Demat Account with Sherekhan as it provides free account opening and Rs.400 for Annual Maintenance Charges. Though it has high charges of Rs.750 for opening a trading account.
- Angel Broking
Angel Broking is full service broker firm. It is depositary Participant (DP) with CDSL. Account opening charges and AMC is zero in Angel broking Demat Account. However, brokerage of trading charges is relatively high. Still small investors and traders may go for angel broking as it launched Mobile apps for customer services with the name Angle Eye and Angle Broking and ARQ which is an automated investment advisory engine which offers advice as per the investors needs.
No doubt there may be more brokers who maintain Demat Accounts and Trading Accounts to hold shares and stock in electronic forms and they may give better services than the above mentioned broking firms based on the individual assessment and opinion.