Demat Account: How to choose between full-service and discount brokers?

livemint.com:

demat account is as crucial as choosing the appropriate bank account for seamless banking transactions. Your demat account acts as the gateway to stock investing and trading in various securities like derivatives, bonds, commodities, and mutual funds. In recent years, there has been a significant increase in demat account additions, driven by growing awareness about stocks.

Regulatory efforts and a greater willingness to take on risk have encouraged young Indians to explore stock market investments. Indian households are transitioning from traditional bank deposits to stock investing, either by directly opening demat accounts or investing through mutual funds. The surge in demat account openings gained momentum in 2019, during India’s first lockdown.

With people working from home and schools closed, individuals had more free time to explore investment options. Also Read: How does a demat account facilitate trading in derivatives? During this period, discount broking firms experienced a surge in popularity among retail investors, emerging as preferred options for demat account openings. These firms facilitated account opening through mobile apps, providing users with a seamless and convenient experience directly from their smartphones.

Discount broking firms like Groww and Zerodha hold over 40% of India's active clients. This trend isn't exclusive to India; globally, discount broking firms dominate the market landscape. For instance, in the United States financial markets, Robinhood, an online discount broking firm, holds a significant share.