Best Demat Account in India for Beginners

Once upon a time, buying and selling shares were done through tons of paperwork. However, a Demat account was soon introduced to deal with this troublesome and excruciating exciting process. After all, buying and selling shares should be inherently exciting. Trading via Demat accounts comes with its own set of advantages.

However, with so many platforms offering Demat accounts, newbies will likely get confused and decide which is the best Demat account for trading. For those fascinated by the idea of buying and selling shares, this blog is a must-read to get an in-depth sneak peek into the best Demat accounts in India.

What Is a Demat Account?

Demat, in short, means "dematerialization." Thus, in other words, a Demat account dematerializes the process of buying and selling shares and securities so that they can be electronically possessed and digitally traded. Unlike earlier paperwork versions of trading, a Demat account ensures that the traders reduce their risks of trade-related thefts and fraud.

The 1996 revisions of the Securities and Exchange Board of India (SEBI) issued an order that clearly stated the mandate to have a Demat account for owning or trading shares and securities. Thus, one cannot hold, buy or sell shares without having this account. One can open a Demat account with zero balance. However, depending on the providers, charges for opening the Demat account may vary.

Where to open a Demat Account?

Central Depositories are responsible for setting up and maintaining your Demat account. NSDL (National Securities Depository Ltd.) and CDSL are the two central depositories in India (Central Depository Services Ltd). The Depository Participants are appointed by these Central Depositories that further act as your main points of contact when opening your Demat account.

In other words, Depository Participants or DPs are technically the banks, stock brokers, or other finance companies that hold and record all transactions related to your account. Usually, a DP can be of two types:

  1. Full-time service brokers: These brokers are available all year round and offer broking services, financial consultancy, and investment-related advisory services.
  2. Discount brokers: These are the broking services that provide their services at a discounted price. Unlike full-time service brokers, their services are only limited to trade transactions.

Which Demat Account is Best for Beginners?

In India, many Demat account providers offer competitive offers to potential users interested in dealing with shares. This means it is often a confusing pathway to figure out the best Demat account, especially if someone is a first-time investor. Thus, one should always look for Demat account platforms that are well-established in the market instead of caving to lucrative offers.

Doing so helps reduce the risk of potential threats and fraud. In addition, seeking the help of trading experts and engaging in high-quality market analysis always leads to a fruitful investment journey. As discussed earlier, any investor can decide between the two types of booking services.

Depending on your experience with investment, you can decide which broking service is best for you. Case in point, if you are a seasoned investor and have an in-depth knowledge of the market, you can choose discounted broking services.

However, if you are someone who has just started out, full-time broking services would be the best as they also provide investment-related advisory and consultancy services. Making investments using full-time broking services also reduces the investment risk and helps you make a wise decision every time.

With these two broking services available, another confusion that often pops up is figuring out whether to open a Demat account with a bank or a stockbroker. Both these options for opening a Demat account are fairly good, and thus your decision should be contingent upon how seamless you wish your investment journey to be. Some banks are good when it comes to opening a Demat account.

In other cases, you may feel that opening a Demat account with a stockbroker is the way to begin your investment journey. If you are considering full-time broking service and opening a Demat account with stockbrokers, then Upstox would make a perfect choice for you.

Upstox accounts allow opening a Demat account for trading in shares, digital gold, futures, mutual funds, and more. It also provides live insights into the trading market for users to make the right decision. One can invest with Upstox to open a Demat account for as low as one rupee.


Finding which is the best Demat account for beginners can often become a daunting task. With many options for having the best Demat account in India, first-time investors may feel lost. For investors who are still unsure, we recommend Upstox.

Upstox presently provides the best Demat account for beginners in India. The features offered by Upstox are fascinating. With its paperless digital Demat account, one can also get live insights into the trade market. Users can also monitor their stocks and mutual funds. For investors interested in investing in digital gold, Upstox is the perfect choice with zero investment commission.

Since you are here, why not connect with our trading experts and learn more about how Upstox can help you make the best of your upcoming trading journey?