There is no such bar on having multiple Demat accounts by an individual with different broking houses. There are hundreds of Depository Participants or Demat providers in the country. Each of them has its own advantages and disadvantages according to the point of view of an investor.
Why does an investor go for multiple Demat accounts ?
The answer may vary but main reasons may be the following ones.
- Brokerage and other charges
Being fed up with the high brokerage and other charges many investor look for some other broker who can give them relief to the menace. Since the main thing is money, every investor prefer low brokerage with other satisfactory services.
- Trading Platform
Sometimes investors with experience in the business feel need of some advanced and necessary options in the platform of their existing broker. When they find the same in some other platforms, they consider changing or adopting the same.
- Customer Service
Unsatisfactory customer service causes some investor change or go for other broker.
- Strategy
Some intelligent investors keep multiple demat accounts to the need of their strategy. They may find suitability in different brokers for intraday, delivery, Mutual Fund, etc.
There are Cons also:
- Maintenance Charge: Almost all the brokers have maintenance charge for providing Demat and other services. So, holding multiple Demats may cause you spend more at the end of the year.
- Difficult to track: Obviously frequent transactions through multiple accounts will need more attention and time for tracking your investments.
But if you are looking for opening a better demat, you may think about Zerodha because they have better facilities for their clients:
- Brokerage: Very low. 0.01% or Rs 20/- whichever is lower per executed order for Intraday and Zero brokerage for Delivery of stocks.
- Platforms:
Pi-Heavy software cum trading terminal suitable for advance charting and analysis with facility of advanced order types.
Kite-Very light and very fast HTML5 platform with advanced features compatible and available for web/android/web.
Coin-Advanced platform for investing in Mutual Fund on direct mode. It helps an investor avoid paying upfront and trailing commission (every year). You can keep the MFs in your demat, start, modify and stop SIP on your own. Investment upto Rs 25,000/- is free but for any amount beyond that will attract monthly charge of Rs 50/-.
- Customer Service: They have a robust customer care service across the country for providing care for its clients in multiple languages and via -mail and call.
Besides, they have TradingQnA an interactive platform where one can get reply to all possible queries. Pulse is a platform for market updates.
Since they are discount brokers they have very low account opening charges:
Demat and trading-Rs 300/- and Commodity-Rs 200.
They have online account opening facility. One can click here and land in their account opening page:Open an online trading and demat account with Zerodha and enjoy the lowest brokerage