When opening a Demat account, users must focus on low transaction costs, faster settlement, and stronger security under the new Securities and Exchange Board of India (SEBI) rules.
Discount brokers like Zerodha, Upstox, and Angel One are best for traders who want less brokerage and simple apps.
Choosing the right Demat account saves money in the long term and makes investing safer and smoother.
Choosing a Demat account depends on cost, safety, and ease of use. New rules from the Securities and Exchange Board of India (SEBI) and changes announced in the Union Budget 2026 have made investors more careful about brokerage charges and platform security.
In April 2026, SEBI removed the Letter of Confirmation system and allowed direct credit of securities to Demat accounts, which made settlement faster and less confusing. At the same time, the government increased the Securities Transaction Tax (STT) on futures and options, which affected trading volumes and broker revenue. Brokers are now focusing more on transparent pricing and long-term investors.
Zerodha remains the most popular Demat account in India for people who want the lowest brokerage. It follows a flat-fee model for equity and derivatives and keeps charges simple and easy to understand. The Demat account is linked with CDSL and offers stable platforms for web and mobile trading.
Zerodha is mainly chosen by active traders and investors who do not need advisory services. It benefits from SEBI’s faster settlement system and improved security features like two-factor authentication and device-based login. The company does not offer relationship managers, but the cost savings are high for frequent traders. This makes it suitable for people who want control and low expenses.
Upstox is known for offering zero or very low account-opening charges and a modern mobile application. It targets young investors and first-time traders. Upstox offers easy onboarding and fast KYC through a paperless process. Brokerage is low, and AMC is often free for the initial period, but later charges apply as per policy.
With Budget 2026 increasing STT on derivatives, Upstox is shifting focus to long-term equity investors and mutual fund users. The platform is simple, but customer support may be slower during periods of high market activity. Still, it remains one of the best Demat accounts for beginners who want an easy interface.
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ICICI Direct is a full-service broker offering a 3-in-1 account with bank, trading, and Demat linked together. This makes fund transfer instant and smooth. Brokerage charges are higher compared to discount brokers, but research reports and advisory services are included.
ICICI Direct benefits from SEBI’s strengthened security rules, which provide users with greater confidence in large institutions. The Demat debit charges are also higher, but many investors accept this for safety and service quality. It is suitable for people who prefer offline support and detailed market research.
HDFC Securities is another bank-backed Demat provider known for stability and customer trust. It offers strong research tools and long-term investment guidance. The brokerage is not the cheapest, but the services are reliable.
Following the 2026 settlement changes, HDFC Securities has improved transaction speed and reduced manual processing. Investors who are not very active traders but want safe and steady investing prefer this option. The platform also supports mutual funds and bonds in one place, which is helpful for portfolio planning.
Angel One works as a hybrid broker, combining low-cost trading with advisory tools. It offers flat brokerage plans and AI-based stock suggestions. Angel One is investing in account security and automation to comply with SEBI’s new guidelines. It suits investors who want some guidance but still want discount-broker-style pricing. The mobile app is popular and easy to use, though system updates sometimes cause minor delays.
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Your personal trading goals can help you narrow down your Demat account choices. Discount brokers like Zerodha and Upstox are best for low-cost trading. Bank-based brokers like ICICI Direct and HDFC Securities are better for safety and research. Angel One gives a balance between cost and advisory.
With new SEBI settlement rules and higher STT on derivatives, investors are now looking toward long-term investing and platform security. Checking AMC, brokerage charges, and security features before opening a Demat account is important because small fees over time can become massive expenses. Choosing the right Demat account will help investors trade more smoothly and safely in a volatile market.
1. What is a Demat account, and why is it needed in 2026?
A Demat account holds shares and securities in digital form. It is needed because SEBI allows faster, direct credit for securities, making trading simpler and more secure.
2. Which Demat account is best for beginners?
Upstox and Angel One is suitable for beginners because they have easy mobile apps, low opening costs, and simple trading processes.
3. Is Zerodha still the cheapest Demat account in 2026?
Yes, Zerodha continues to offer low brokerage fees through a flat-fee model, helping active traders save more on every trade.
4. How do SEBI rules affect Demat account users?
SEBI rules improve security, remove extra steps in settlement, and protect investors from fraud, making Demat accounts more reliable.
5. What should be checked before opening a Demat account?
Brokerage charges, AMC fees, security features, customer support, and ease of app use should be checked before opening any Demat account.