Before we get into the list of Top 5 free Demat accounts in India, it is particularly important to understand what Demat accounts are and how they function. 

What is a Demat account? 

Demat Account is an account which is used to hold shares and securities in an electronic format. Demat account is also known as dematerialized account. The sole purpose of this particular account is to hold shares which have been dematerialized or bought as this makes share trading an easy job for the users while doing trading online. 

During online trading, shares are usually bought and held in a Demat account which facilitates easy trade for the users. 

What is Dematerialization? 

Now, to understand more about a Demat account, you must understand what Dematerialization means. Dematerialization is the process of converting physical share certificates into electronic shares which then, becomes a lot easier to maintain and can be accessed from anywhere in the world. If you are an investor and you want to trade online, you will be needing a Demat account with a depository account. Dematerialization helps to remove the hindrance of holding physical share certificates and facilitates a seamless experience.

Importance

Securities and Exchange Board of India (SEBI) has made it mandatory for every trader and investor to have a DEMAT account where securities can be kept in dematerialized form after the Depositories Act of 1996.

Mainly, there are two depositories in the Indian market, the National Security Depository Limited (NSDL) and the Central Depository Service Limited (CDSL) which serve as the depositories for NSE and BSE, respectively. SEBI has made it mandatory to have a DEMAT account before trading in the stock market.

Now, we present to you the list of top 5 free Demat accounts in India : 

1. 5 Paisa 

At the top of our list, 5Paisa is a discount broker with one of the lowest brokerage charges amongst all the discount brokers in India. The best part about 5 Paisa is that there are no upfront charges for opening a Demat account, but only a maintenance charge of INR 45 per month. Another USP about this discount broker is that it is promoted by IIFL, one of the most premier NBFCs based in India since the past two decades back. 5Paisa charges you the lowest brokerage charges of flat INR 10. per trade under the addon Ultra Trader pack. You can place a single trade worth crores and pay brokerage of just INR 10 per trade.

5Paisa Annual Charges Details

5paisa offers an All-in-one investment account with 2 different addon packs : 

• Research & Idea Pack – Rs. 499 per month. Brokerage Rs. 20 per trade and AMC Rs. 45 per month.  

• Ultra-Trader Pack – Rs. 999 per month. Brokerage Rs. 10 per trade and NIL AMC charges.  

• You need to pay maintenance charges only for the traded month under the Research & Idea pack. 

• 5paisa account opening is FREE.

5Paisa Brokerage charges 

2. Zerodha 

Known as the pioneer discount brokerage in India, Zerodha is the largest and the most trusted discount brokers of the country with a user base of more than 30 lakh, based in Bangalore, Karnataka.  The best part about with Zerodha is that they do not charge any brokerage on delivery-based trades, whereas a fixed charge of INR 20 is charged for all executed orders of intraday and derivative trading. There are Zero account opening charges but only an annual maintenance charge for Demat is charged second year onwards.

Zerodha Account Charges 

• Demat & trading account opening charges – Rs 200

• Commodity account opening charges – Rs 100

• Annual maintenance charges – Rs 300 per year

Zerodha Brokerage Charges

• Equity Delivery- zero brokerage

• Equity Intraday- 0.03% or Rs 20 per executed order whichever is lower

• Equity Futures- 0.03% or Rs 20 per executed order whichever is lower

• Equity Options-  flat Rs 20 per executed order

3. Upstox 

Formerly known as RKSV securities, Upstox is one of the best discount brokers in India because of its high margins, advanced technology platforms and cheap brokerage charges. Upstox is considered to be the main competitor of Zerodha as both brokers are working with the concept of discount brokerage. There are no charges for account opening and the Demat account can be opened online. There is a nominal maintenance charge of INR 150 which is levied from second year onwards. Upstox charges a fixed brokerage of Rs. 20 per trade for intraday irrespective of your trading volume with free stock delivery. This can save you a good amount of money in brokerage compared to other full brokers.

Upstox Account Charges

• Upstox Demat and Trading Account Opening – Free

• Upstox Annual Maintenance Charges – Rs. 25 per month

Upstox Brokerage charges 

4. Sharekhan 

Acquired by BNP Paribas group in 2016 for a whopping INR 2200 crores, Sharekhan is one of the most premium brokers in India. Established in 2000, Sharekhan has a consumer base of over 16 lakhs spread across all major cities in India. There are no Demat opening charges charged by Sharekhan whereas a fixed Demat maintenance charge of INR 400 is charged from the second year. A minimum brokerage of 10 paisa is levied per share.  Currently, the company provides service from 3200 share shops across 541 cities.

Sharekhan account charges 

• Trading Account Opening Charges – Nil

• Demat Account Opening Charges – Nil

• Annual Maintenance Charges – Rs. 400 per annum (1st year free)

Sharekhan Brokerage Charges 

5. Motilal Oswal 

Established in 1987, Motilal Oswal is one of the most prestigious players of the Indian stock Market. Other than providing services like Demat account, Motilal Oswal also provides services like private wealth management, retail broking, and distribution, institutional broking, asset management, investment banking, private equity, commodity broking, currency broking, principal strategies & home finance. They are present in 2200 locations across India and have a consumer base of over 9 lakhs. The best part about Motilal Oswal is that they provide an integrated 3-in-1 account where your savings account, Demat account and your trading account are integrated as one. 

Motilal Account Charges

• Demat Account Opening Charges – Rs 0

• Trading  Account Opening Charges – Rs 0

• Annual Maintenance Charges –  up to Rs 899 depending on the scheme.

Motilal Oswal Brokerage charges