Opening a Demat account is the first step toward investing in stocks, mutual funds, ETFs, and other securities in India. But with so many brokers charging varying fees, finding the cheapest Demat account can help investors save significantly—especially beginners and small investors.
In this article, we explore the top low-cost Demat account providers in India, comparing account opening fees, AMC (Annual Maintenance Charges), and other costs to help you make an informed decision.
📌 What is a Demat Account?
A Demat (Dematerialized) account holds your shares and securities electronically. It is mandatory for trading in the Indian stock market, and is maintained by depositories like NSDL and CDSL through registered Depository Participants (DPs)—which are brokers.
✅ Key Charges to Compare
When comparing Demat accounts, consider the following charges:
| Charge Type | Description |
|---|---|
| Account Opening Fee | One-time charge for opening the Demat account |
| AMC (Annual Maintenance Charges) | Yearly fees for maintaining the account |
| Brokerage Fees | Charges for buying/selling shares |
| Transaction Charges | Charges per debit/credit of shares in Demat account |
| Pledge/Unpledge Charges | For using shares as collateral |
🏆 Top 7 Cheapest Demat Accounts in India (2025)
1. Zerodha Demat Account
- Account Opening Fee: ₹200
- AMC: ₹300/year
- Brokerage: ₹0 for delivery, ₹20 or 0.03% per intraday trade
- Why Choose: India’s most popular discount broker with zero delivery brokerage
👉 Best for: Active traders & long-term investors
2. Groww Demat Account
- Account Opening Fee: ₹0
- AMC: ₹0
- Brokerage: ₹20 or 0.05% per executed order
- Why Choose: Zero AMC & beginner-friendly app
👉 Best for: New investors & mutual fund buyers
3. Upstox Demat Account
- Account Opening Fee: ₹0 (Limited-time offer)
- AMC: ₹0 for 1st year, ₹150/year from 2nd year
- Brokerage: ₹0 for delivery, ₹20 per trade for intraday
- Why Choose: Fast account opening, low trading charges
👉 Best for: Cost-conscious traders & tech-savvy users
4. Angel One Demat Account
- Account Opening Fee: ₹0
- AMC: ₹0 for life (on selected plans)
- Brokerage: ₹0 for delivery, ₹20 per order otherwise
- Why Choose: Full-service broker with discount pricing
👉 Best for: Investors who want advisory + low brokerage
5. 5paisa Demat Account
- Account Opening Fee: ₹0
- AMC: ₹300/year
- Brokerage: Flat ₹20 per order
- Why Choose: Good mobile app, multiple subscription plans
👉 Best for: Investors looking for low-cost trading + research
6. Paytm Money Demat Account
- Account Opening Fee: ₹0
- AMC: ₹0
- Brokerage: ₹0 for delivery, ₹10 for intraday
- Why Choose: Cheapest brokerage for intraday trades
👉 Best for: Budget-conscious intraday traders
7. ICICI Direct Neo Plan
- Account Opening Fee: ₹0
- AMC: ₹0 for 1st year, ₹300 thereafter
- Brokerage: ₹20 per order (under Neo plan)
- Why Choose: Trusted bank-backed broker with flat fees
👉 Best for: ICICI Bank customers preferring integrated services
📊 Comparison Table: Cheapest Demat Accounts
| Broker | Account Opening | AMC | Delivery Brokerage | Intraday Brokerage | Best For |
|---|---|---|---|---|---|
| Groww | ₹0 | ₹0 | ₹20/order | ₹20/order | Beginners |
| Zerodha | ₹200 | ₹300 | ₹0 | ₹20/order | All-round trading |
| Upstox | ₹0 | ₹0 (1st yr) | ₹0 | ₹20/order | Low-cost trading |
| Angel One | ₹0 | ₹0 (plans) | ₹0 | ₹20/order | Full-service experience |
| 5paisa | ₹0 | ₹300 | ₹20/order | ₹20/order | Research + trading |
| Paytm Money | ₹0 | ₹0 | ₹0 | ₹10/order | Cheapest intraday brokerage |
| ICICI Direct | ₹0 | ₹0 (1st yr) | ₹20/order | ₹20/order | Integrated bank trading |
🧾 How to Choose the Right Demat Account
Consider these factors before choosing a broker:
- Cost Structure – Look beyond just AMC; check brokerage and transaction fees.
- Trading Needs – If you trade often, low intraday fees matter. For long-term, focus on AMC and delivery charges.
- Interface – Easy-to-use apps and platforms improve your trading experience.
- Support & Features – Advisory services, research tools, and analytics can be valuable for some investors.
💼 Documents Required to Open a Demat Account
To open a Demat account online, keep the following documents ready:
- PAN card
- Aadhaar card
- Bank account details (cancelled cheque or statement)
- Signature on white paper
- Income proof (for derivatives trading)
- Webcam or phone camera (for IPV)
📝 Final Verdict: Which is the Cheapest Demat Account?
- For zero-cost investing, Groww and Paytm Money lead with ₹0 opening and ₹0 AMC.
- For low brokerage + advanced tools, go with Zerodha or Upstox.
- For free advisory + full-service, Angel One offers great value.
🔍 Tip: Avoid brokers with hidden charges or poor customer service—even if they offer zero fees.
🔍 FAQs
Q1. Can I open multiple Demat accounts?
Yes, but each must be with a different broker and linked to your PAN.
Q2. Is there any penalty for closing a Demat account?
No, closing a Demat account is free. Ensure no shares or dues are pending.
Q3. Which Demat account has the lowest brokerage in India?
Paytm Money and Zerodha offer some of the lowest brokerage rates, especially for delivery and intraday trading.