HDFC Demat Account is a type of electronic account used to hold securities, such as stocks, bonds, and mutual funds, in a paperless format. As a leading financial services company, HDFC Securities offers its customers a Demat Account that provides a safe, secure, and convenient way to invest in the stock market. In this review, we will examine the features, benefits, fees, and charges of an HDFC Demat Account, as well as the user experience and customer support provided by HDFC Securities. Whether you are a beginner or an experienced investor, this review will help you decide whether an HDFC Demat Account is the right choice for you.
Number of active clients HDFC Demat Account
As per the data available on the National Stock Exchange (NSE) website as of 31-Mar-2023, HDFC Securities had a total of 278706 active clients. This number includes both individual and institutional investors who have opened a trading and/or Demat account with HDFC Securities.
Benefits of Demat account with HDFC Securities
Opening a Demat account with HDFC Securities comes with several benefits that make it a popular choice among investors. Some of the benefits of having a Demat account with HDFC are:
- Safe and Secure: HDFC Securities provides a highly secure platform for holding securities, ensuring that your investments are safe from any fraudulent activities.
- Easy Account Opening: The account opening process is entirely online and hassle-free, making it convenient and time-saving for investors.
- 3-in-1 account: HDFC Securities offers a 3-in-1 account that integrates a trading account, a Demat account, and an HDFC Bank savings account into a single account. The integration of these three accounts provides investors with a seamless and convenient way to manage their investments.
- Multiple Investment Options: HDFC Demat Account offers a wide range of investment options, including stocks, bonds, mutual funds, and government securities, allowing investors to diversify their portfolio.
- Real-Time Access and Monitoring: Investors can monitor their investments in real-time through HDFC Securities’ online trading platform, providing them with the latest information and market updates.
- Loan against Shares: HDFC Securities also provides a loan against shares facility, which allows investors to borrow funds against their shares, making it a quick and easy way to access funds.
- Low Transaction Charges: HDFC Securities charges low transaction fees, making it a cost-effective option for investors.
- Additional Services: HDFC Securities offers additional services such as research reports, market analysis, and investment advice, helping investors make informed decisions.
HDFC Securities Brokerage Charges
HDFC Securities, like other stockbrokers, charges brokerage fees for executing trades on behalf of their clients. The brokerage charges are a percentage of the total transaction value and vary based on the type of transaction and the volume of trades.
Here are the brokerage charges for HDFC Securities:
- Equity Delivery: For equity delivery, HDFC Securities charges a brokerage fee of 0.50% of the transaction value, subject to a minimum of Rs. 25 per trade.
- Equity Intraday: For equity intraday trading, HDFC Securities charges a brokerage fee of 0.05% of the transaction value, subject to a minimum of Rs. 25 per trade.
- Futures and Options (F&O): For F&O trades, HDFC Securities charges a brokerage fee of 0.05% of the transaction value, subject to a minimum of Rs. 20 per trade.
- Currency Derivatives: For currency derivative trades, HDFC Securities charges a brokerage fee of 0.05% of the transaction value, subject to a minimum of Rs. 20 per trade.
Note: These charges do not include additional fees such as Securities Transaction Tax (STT), Goods and Services Tax (GST), Stamp Duty, and other regulatory charges, which will be levied as applicable.
HDFC Securities Demat Account Opening Charges
HDFC Securities charges a one-time fee for opening a Demat account, which is a mandatory requirement for investing in the stock market. The Demat account opening charges for HDFC Securities are as follows:
- Account Opening Charges: HDFC Securities charges a one-time account opening fee of Rs. 750 for a Demat account.
- Annual Maintenance Charges (AMC): HDFC Securities charges an annual maintenance fee for the Demat account, which is Rs. 500 per year. The first year’s AMC is waived off if the account holder pays the account opening fee upfront.
Note: These charges may be subject to change and may vary based on the type of account and the services opted for. Additionally, there may be other charges such as transaction charges, SMS alerts, and additional services that are levied as applicable.
HDFC Securities Demat Account Charges
Apart from the Demat account opening charges and annual maintenance charges, HDFC Securities also levies other charges on the Demat account holders for various services provided by them. Here are the HDFC Securities Demat account charges:
- Transaction Charges: HDFC Securities charges transaction charges on the purchase and sale of securities. For equity delivery, the transaction charges are 0.015% of the transaction value or Rs. 25 per transaction, whichever is lower. For equity intraday, futures and options, and currency derivatives, the transaction charges are 0.00275% of the transaction value or Rs. 25 per transaction, whichever is lower.
- Depository Participant (DP) Charges: HDFC Securities charges DP charges for holding securities in the Demat account. The DP charges are Rs. 15 per transaction for a debit transaction and Rs. 50 per transaction for a credit transaction.
- Account Modification Charges: HDFC Securities charges a fee of Rs. 25 for any modifications to the Demat account details such as name, address, bank details, etc.
- Pledge Creation and Closure Charges: HDFC Securities charges a fee of Rs. 50 for creating a pledge on the securities held in the Demat account and Rs. 100 for closing the pledge.
- Rematerialization Charges: HDFC Securities charges a fee of Rs. 25 per certificate for rematerializing physical securities into electronic form.
Note: These charges may be subject to change and may vary based on the type of account and the services opted for. Additionally, there may be other charges such as stamp duty, regulatory charges, and taxes that are levied as applicable.
HDFC Securities Pros and Cons
HDFC Securities is a well-known stockbroker in India offering a range of investment and trading services. Here are some of the pros and cons of HDFC Securities:
Pros:
- Trusted brand: HDFC Securities is a subsidiary of HDFC Bank, which is a well-known and trusted brand in the Indian financial market. This gives investors a sense of security and trust in the services provided by HDFC Securities.
- Wide range of investment options: HDFC Securities offers a wide range of investment options such as equities, derivatives, mutual funds, IPOs, and bonds. This allows investors to diversify their portfolio and choose investment options based on their risk appetite.
- Advanced trading platforms: HDFC Securities offers advanced trading platforms such as HDFC Securities Trading Terminal, HDFC Securities Mobile Trading App, and HDFC Securities Web Trading Platform. These platforms provide investors with real-time market data, advanced charting tools, and trading features.
- 3-in-1 account: HDFC Securities offers a 3-in-1 account which includes a savings account, trading account, and Demat account. This makes it convenient for investors to manage their funds and investments from a single account.
- Customer support: HDFC Securities provides excellent customer support through phone, email, and chat. Their customer support team is knowledgeable and helpful in resolving queries and concerns.
Cons:
- Higher brokerage charges: HDFC Securities charges higher brokerage fees compared to discount brokers. This may be a disadvantage for investors looking for a cost-effective option.
- Additional charges: HDFC Securities levies additional charges such as transaction charges, DP charges, and account modification charges, which may increase the overall cost of trading.
- Limited research and advisory: HDFC Securities offers limited research and advisory services compared to some of the other full-service brokers. This may be a disadvantage for investors who rely heavily on research and analysis for their investment decisions.
- High minimum investment: HDFC Securities has a higher minimum investment requirement compared to some of the other brokers, which may be a disadvantage for small investors.
HDFC Securities Margin
HDFC Securities offers margin trading facility to its clients, which allows them to trade in the stock market with borrowed funds. This increases the buying power of the investors and enables them to take larger positions in the market.
Here are the margin trading facilities offered by HDFC Securities:
- Intraday margin: HDFC Securities offers intraday margin for trading in the equity, futures, and options segments. The intraday margin allows investors to take positions that are larger than their available funds. The margin available for trading in the intraday segment depends on the stock being traded and the volatility in the market.
- Delivery margin: HDFC Securities also offers delivery margin for trading in the equity segment. The delivery margin allows investors to buy stocks and hold them for a longer period of time. The margin available for trading in the delivery segment depends on the stock being traded and the risk involved.
- Bracket Order (BO) margin: HDFC Securities offers BO margin for trading in the equity, futures, and options segments. BO is a type of order where investors can place an order for buying or selling a stock with a predetermined target price and stop loss price. The BO margin available for trading depends on the stock being traded and the volatility in the market.
Note: Margin trading involves higher risk and investors should carefully evaluate their risk tolerance before availing margin trading facility. HDFC Securities also charges interest on the margin utilized by the investors, which is calculated on a daily basis and added to the ledger balance.
How to open HDFC demat account?
Opening a demat account with HDFC Securities is a simple and hassle-free process. Here are the steps to open a demat account with HDFC Securities:
- Step 1: Visit the HDFC Securities website and click on the ‘Open Demat Account’ button on the homepage.
- Step 2: Fill in your personal details such as name, email address, mobile number, and city of residence in the online application form.
- Step 3: After filling in the personal details, click on the ‘Submit’ button.
- Step 4: You will receive a call from the HDFC Securities representative who will guide you through the account opening process.
- Step 5: You will be asked to provide KYC documents such as PAN card, Aadhaar card, and address proof. You will also be required to upload your photograph and signature.
- Step 6: Once the KYC documents are verified, you will be required to e-sign the demat account opening form.
- Step 7: After completing the e-sign process, you will receive an email from HDFC Securities with the details of your demat account.
- Step 8: You can then log in to the HDFC Securities website using your login credentials and start trading in the stock market.
Why to choose HDFC Securities Demat Account?
There are several reasons why one should choose HDFC Securities for investing in stocks, mutual funds, and IPOs:
- Wide range of investment options: HDFC Securities offers a wide range of investment options to its clients, including stocks, mutual funds, IPOs, bonds, and other investment products. This provides investors with a range of options to diversify their portfolio and optimize their returns.
- Research and analysis: HDFC Securities provides in-depth research and analysis on various investment options, which helps investors make informed decisions. They also provide regular updates on market trends, stock recommendations, and mutual fund performance, which can help investors stay updated and make informed investment decisions.
- Ease of trading: HDFC Securities provides a user-friendly trading platform that enables investors to trade in stocks, mutual funds, and IPOs seamlessly. They also offer a mobile app that allows investors to trade on-the-go.
- Competitive brokerage charges: HDFC Securities offers competitive brokerage charges, which are lower than many other brokerage firms in the market. This makes it a cost-effective option for investors looking to invest in the stock market.
- Customer support: HDFC Securities provides excellent customer support to its clients, with a dedicated customer support team that can help investors with their queries and concerns.
Overall, HDFC Securities is a trusted and reliable name in the stock market, and their wide range of investment options, research and analysis, ease of trading, competitive brokerage charges, and excellent customer support make them a preferred choice for investors looking to invest in stocks, mutual funds, and IPOs.
HDFC Securities Customer Support
- Customer Care Helpline: You can reach HDFC Securities customer support team at their toll-free number 1800-266-0067. They are available from Monday to Friday, 9:00 am to 6:00 pm.
- Email Support: You can also reach out to them via email at [email protected] or through their online chat support on their website.
- Branch Offices: HDFC Securities has a wide network of branch offices across India, where customers can visit and get their queries resolved in person.
Conclusion
HDFC Securities is a trusted and reliable name in the Indian stock market, offering a wide range of investment options to its clients. They provide excellent research and analysis, ease of trading, competitive brokerage charges, and exceptional customer support. Their 3-in-1 account, which combines a trading account, demat account, and bank account, makes it easy for investors to manage their investments and ensures a hassle-free investing experience. If you’re looking to invest in stocks, mutual funds, and IPOs, HDFC Securities is definitely a platform to consider.
FAQ
HDFC Securities is a subsidiary of HDFC Bank that provides a range of financial services, including trading and investment services in stocks, derivatives, mutual funds, and IPOs.
You can open a demat account with HDFC Securities by visiting their website, filling out the account opening form, and submitting the required documents.
A 3-in-1 account with HDFC Securities combines a trading account, demat account, and bank account into a single account, making it easy for investors to manage their investments.
HDFC Securities charges a flat brokerage fee of 0.03% for intraday trades and 0.50% for delivery trades, subject to a minimum of Rs. 25 per trade.
Yes, HDFC Securities provides research and analysis for stocks and mutual funds, including detailed reports and recommendations.
You can contact HDFC Securities customer support by calling their toll-free number 1800-266-0067, emailing them at [email protected], or through their online chat support on their website.
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