India’s online investment space has seen significant growth and if you plan to try your hand at the stock market in 2025, don’t forget the very first step, starting with setting up a free demat account. This is available on most advanced trading platforms and the entire process is seamless, quick, and free of cost.
However, with so many different brokers and fintech start-ups advertising their services for free demat accounts, how do you decide which one is the best for your specific needs? Is lack of account opening fee enough, or perhaps other important factors should also be taken into account?
Let’s figure this out step by step.
Demat Account Growing Popularity in India
The last five years has witnessed a remarkable increase of demat accounts in India. As per NSDL and CDSL statistics,
- By early 2025, the number of demat accounts in India had grown significantly compared to previous years, reflecting a sharp rise in retail investor participation.
- A large proportion of this growth comes from Tier II and Tier III cities.
- The largest demographic of new investors is between 18 and 35 years of age.
- Mobile-first, paperless onboarding has greatly assisted with this growth.
Clearly interest in investing has elevated significantly, this has also increased the interest in discovering the most effortless options for creating online accounts.
What is a Demat Account And Why Is It Important To Have One?
Demat accounts in India is a kind of account that holds your bonds, shares ETFs, and mutual funds in electronic formats. There is no need to keep share certificates in the form of paper since they can be purchased or sold and efficiently managed.
If you plan to invest in shares of private companies, stock market listed companies’ IPOs, mutual funds, ETFs, and Government securities, then it is compulsory that you possess a demat account.
The best part is that there is currently no requirement for visiting a physical office or paying any fees. You can get a free demat account online in 10-15 minutes from your mobile phone or laptop.
Most Important Features Tailored to Your Needs in One Page
Here are some features that require your attention before selecting your India demat provider:
1. Advertised True Zero Fee Structure
Most free demat account platforms get listed with underlying fees such as Annual Maintenance Charges (AMC), inactivity penalties, or fees for sending physical statements.
Select a platform that guarantees no AMC, hidden costs, or account opening fee at least in the first year. Some platforms even have lifetime free AMC.
2. Kapag Wala Hapang Paper KYC
The best platform has capabilities for e-KYC via Aadhaar OTP and facial recognition. As of 2025, many platforms permit users to verify identity and free demat account opening under 15 minutes.
Look for a platform that avoids paperwork and courier-related delays.
3. User Interface and the Mobile Application
Most new investors would prefer to do their trades on mobile. The platform you choose needs to provide:
- An easy-to-navigate and clean app interface
- Order and transaction execution without delays
- Data and portfolio monitoring
- Alerts and analytics
A slow and disorganised app would negatively impact user experience and could also cost them potential gains.
4. Brokerage Charges in Trades
Although the account opening might be free, these platforms usually add charges for transactions. Look for:
- No brokerage fees on delivery trades
- Brokerage fees only in intraday and F&O trades
- Discount brokerages (for example ₹20 per transaction)
Some of these include Zerodha, Upstox, Share India and Angel One who are market leaders in the model.
5. Accessibility of Mutual Funds and SIPs
SIPs and mutual funds are very popular among new investors. If that describes you, make sure your demat account platform offers:
- Access to invest in mutual funds directly
- No charge on SIP investments
- Tools for fund selection comparison
- Automated investment plan features
This can be very helpful for younger investors looking to start small while nurturing discipline over time.
6. Research and Integrated Learning Tools
In-app financial learning is what I search for in 2025 Check other platforms that offer:
- Stock rest and market relevant news
- Educational materials on investing including common guides and starter resources
- Advanced tools that enable users to view and analyse charts and indicators
- Tools helping define and categorise investors based on the level of risk they are willing to take
Newbies with the investing world will greatly appreciate these.
7. Support and Customer Assistance
Quick and easy customer service is what I deem essential. They must be easily reachable through:
- Live chat
- Email & Phone
- Social Media
Some platforms even include step-by-step onboarding calls, video guides for new users or even done by a chatbot.
8. Access to ETF and IPO
IPOs have not lost their allure in 2025, and they remain one of the most attractive options to invest into. Make sure you check your platform for the following:
- UPI funding of IPOs from as little as one click
- IPOs status update systems that provide notifications for real-time alerts and subscriptions on IPOs
- Possibilities for investment on ETFs and listings involved with them.
These are necessary in order to use the best fast growing features offered.
Committing these oversights is the biggest mistake when opening a demat account.
These are a few of the mistakes new investors tend to make:
- Selecting a trading platform exclusively because an influencer endorsed it.
- Not looking into the brokerage fees of executing trades (especially if they are day trades).
- Completing registration without checking for undisclosed costs.
- Ignoring the design, usability, and ratings of mobile applications.
- Verifying the existence of mutual funds, SIPs, or IPOs on the account.
Asking questions will keep you from wasting money and time in the long run.
Follow these steps. This is the first time you can easily open an account. To do so:
- Access the broker’s website or mobile app. Register with a phone number and email address. Provide your PAN card, Aadhaar, and bank information.
- KYC verification is completed electronically via OCR and facial identification.
- A selfie is taken, and form signing is accomplished through an electronic signature.
- The process is generally concluded within several hours and you should expect to receive notifications regarding approval.
- You’re all set to dive into your first investment now!
Remember: The earlier, the better
The speed at which the financial system of India functions has improved tremendously. By 2025, with just a smartphone and a PAN card, anyone would be able to access the internet and set up a demat account from anywhere in the country.
However, ensure that you select the demat account which suits you best, as not all are made equally. A little research can help you save plenty of time and money. Therefore, look beyond ‘free’, as additional help, guidance, and transparency are also valuable features.
Your portfolio can be built efficiently by a good demat account in India, so make sure to analyze and explore your options in detail.
