Is Demat Account Free?
Can I open Demat Account For Free?
Which Trading Platforms provide free demat account opening?
If you are looking for answers to these questions then keep reading this blog. This blog is written with an objective of explaining the reality behind discount brokerage, free demat accounts and unlimited free trading plans.
Yes, it is possible to open a demat account without any charges.
To understand this concept truly; Let’s have a quick look at the basics.
What exactly is a demat account?
A Demat account is opened by the investor while registering with an investment broker/ stockbroker. The Demat account number is quoted for every transaction to allow the electronic resolution of trades to take place. Every investor should have a Demat account for the reason of transacting shares.
But really is trading possible with zero brokerage charges?
Our answer is yes.
Nowadays, So many brokers offer Zero Brokerage Plan but its really Zero or hidden charges set-off zero brokerage?
Brokerage is the Main Component in investment or trading Cost. Every trader and Investor are looking to pay lowest brokerage from their broker. This provides them to cut down cost that will help them to low their BEP which gradually helps them increased their ROI.
So, What about unlimited trading plans?
Few Brokerage Company Offer Unlimited Trading Plan where you can pay monthly fees and Zero Brokerage for unlimited trading in a month.
- TradeSmart Online
- Trade Plus Online.
But actually, they set-off their Brokerage Loses by charging higher transaction cost – Compare Discount Brokerage Transaction Charges.
Then comes in the picture: Discount Brokerage
In 2010 Zerodha launched the Discount Brokerage concept in India. Before 2010 leading brokerage house charged 0.03 – 0.05% for Intraday trading and 0.30 – 0.50% for delivery trading and Rs 100 For option lot.
Zerodha offered Flat Rs 20 Brokerage for All intraday Traders in any segment in any exchange which helps you to save up to 95% on your brokerage.
Since 2016 Dec Zerodha offers Zero Delivery Brokerage for all equity investments.
In True terms Zerodha – Discount Broker Offer Zero Brokerage Charges – Our suggestion for you to check it out yourself Zerodha – Discount Brokerage.
Still wondering why Zerodha as your trading platform?
Below are some best advantages which zerodha provides to its customers:
- Zero Delivery Brokerage – NSE & BSE Cash Delivery Segment
- Flat Rs 20 Per Executive Order Brokerage for all other Segment
- Zerodha Coin – Zero Cost Mutual Fund Online Investment
- Lowest Transaction Charges across the industry.
- Best Trading Terminal – ZerodhaKite ,Zerodha Pi
- Zerodha Varsity – Interactive Educational Blog for Trader and Investor.
- 60 Days- Challenge – If you net Profitable in 60 Days challenge Zerodha will pay back your brokerage charges in 60 days ( Max – 6000 )
Want to know more about how to open an account in Zerodha – Check this
An easy way to understand the discount brokerage model
We understand that this concept might be quite difficult and confusing for you. Hence; we have tried to explain by using an example. Let’s see below example how you can save 95% of your cost in trading.
For example : If you trade in Reliance in Future Lot size is 1000 Qtn
Buy 2 lot RELIANCE @ 926
Sell 2 lot RELIANCE @ 930
Brokerage Calculation :
Traditional Broker : Assume their brokerage for intraday 0.04%
Buy : RELIANCE – 926 * 1000 *2 = 1852000 * 0.04% = 740.8 Brokerage for Buy
Sell : RELIANCE – 930* 1000 *2 = 1860000 * 0.04% = 744 Brokerage for Sell
Total Brokerage = 1484
Now let’s have a look at Zerodha charges
Zerodha – Discount Brokerage : Flat Rs 20 Brokerage Per Order
Buy :RELIANCE – 926 * 1000 *2 = 1852000 * 0.04% = Rs 20 Brokerage for Buy
Sell : RELIANCE – 930* 1000 *2 = 1860000 * 0.04% = Rs 20 Brokerage for Sell
Total Brokerage = Rs 40
Total Saving = 1484 Rs – 40 Rs = 1444 Rs ( Brokerage Traditional Broker – Brokerage Zerodha ) you saved 90% of your Brokerage Cost
You can always learn more about Brokerage saving Calculator .
Here in a very simple and quick way we found that When we compare Zerodha Brokerage to leading traditional brokerage difference is significant. Hence; Zerodha Brokerage is almost Zero compare to traditional Brokerage.
We hope you have understood this concept of which companies actually helps customers to open Demat Account Free. If you still have any doubts our team is here to resolve all your queries.
You Can Also Read: How to Compare Brokerage Firms?