Are you struggling to choose the right demat account for your long-term investment journey? With dozens of brokers offering seemingly similar services, finding the perfect match for your investment style can feel overwhelming. This comprehensive guide will help you identify the best demat account in India, specifically optimized for long-term investors, focusing on features that matter most for wealth building over time.
As seasoned financial analysts with over a decade of experience in the Indian securities market, we’ve evaluated the top brokers based on account maintenance charges, trading fees, research tools, and customer service quality. We’ve also factored in the latest regulatory changes by SEBI that impact long-term investors in 2025.
What Makes a Demat Account Ideal for Long-Term Investment?
For long-term investors, certain features matter more than others:
- Low maintenance costs – Annual fees can erode returns over decades
- Zero or minimal delivery charges – Essential for buy-and-hold investors
- Quality research tools – Fundamental analysis capabilities for stock selection
- Portfolio tracking features – For monitoring long-term performance
- Reliability and trustworthiness – Your broker should stand the test of time
- Customer service – Responsive support for resolving issues
Account Security and Protection
For long-term investors, security is paramount since your assets will remain with a broker for decades. Look for:
- Two-factor authentication
- Insurance protection
- Regulatory compliance
- Segregated client accounts
- Data encryption standards
Top 7 Demat Accounts for Long-Term Investment in India
1. Upstox
Introduction: Upstox has established itself as the premier choice for serious long-term investors in India. With over 1.2 million active clients as of April 2025, Upstox combines cutting-edge technology with investor-friendly policies that specifically benefit those with a buy-and-hold strategy.
Why Choose Upstox: Upstox stands out for long-term investors due to its zero annual maintenance charges and lifetime free demat account offering. Their powerful portfolio analytics tools provide detailed insights into sector allocation, helping investors maintain a balanced portfolio over extended periods. Their latest 2025 upgrade includes advanced goal-based investment tracking specifically designed for retirement planning and wealth accumulation.
Key Features:
- Zero AMC for lifetime with no hidden charges
- Free delivery trades for long-term equity investments
- Advanced portfolio analytics with 10-year historical performance comparison
- Integrated tax reporting with capital gains calculator
- Paperless account opening in just 10 minutes
- Dedicated customer support for premium investors
2. Zerodha
Introduction: With over 6 million active traders, Zerodha continues to be among India’s most popular discount brokers. For long-term investors, Zerodha offers a streamlined experience with powerful tools that support informed decision-making for portfolio building.
Why Choose Zerodha: Zerodha’s Coin platform stands out for long-term investors looking to build a mutual fund portfolio alongside direct equity holdings. Their transparent fee structure eliminates unnecessary costs that can erode long-term returns. The broker’s Console platform provides comprehensive portfolio analysis tools that help track performance over extended periods.
Key Features:
- ₹0 brokerage for delivery trades
- ₹300/year account maintenance charge (AMC)
- Coin platform for direct mutual fund investments
- Advanced charting and screening tools via Kite
- Smallcase integration for theme-based investing
- Varsity educational resources for investment knowledge
3. Groww
Introduction: Groww has rapidly risen to prominence as a user-friendly platform focused on simplifying investments for the average Indian. Their approach makes them particularly suitable for first-time long-term investors who value simplicity and educational content.
Why Choose Groww: Groww excels at making investment accessible to beginners while still offering robust tools for portfolio management. Their simplified interface removes complexity without sacrificing important features needed for long-term investment planning. The platform’s educational resources help investors understand fundamental concepts essential for wealth creation.
Key Features:
- Zero account opening and maintenance charges
- Intuitive mobile app with a 4.8/5 rating on the Play Store
- Comprehensive fundamental analysis tools
- IPO investments with UPI
- Integrated goal-based investment planning
- Free access to detailed company research reports
4. ICICI Direct
Introduction: ICICI Direct brings the stability and trustworthiness of a major financial institution to the brokerage space. Their comprehensive offerings make them suitable for investors seeking an all-in-one financial services platform for long-term wealth building.
Why Choose ICICI Direct: As part of one of India’s largest private banks, ICICI Direct offers unmatched integration between banking and investment services. Their 3-in-1 account structure simplifies fund transfers and management, while their research team provides institutional-quality insights for long-term investors. The platform excels for those who value stability and comprehensive service over rock-bottom pricing.
Key Features:
- Integrated 3-in-1 account (savings, demat, trading)
- Extensive research reports across 300+ companies
- Portfolio health check service
- Tax-loss harvesting recommendations
- Relationship manager for premium accounts
- Physical branches for in-person support
5. Angel One
Introduction: Angel One (formerly Angel Broking) has transformed itself from a traditional broker to a technology-driven platform that caters well to the modern long-term investor looking for both tools and guidance.
Why Choose Angel One: Angel One strikes an excellent balance between advanced tools and personalized guidance. Their SmartAPI services allow investors to implement custom investment strategies that can run on autopilot. Their zero delivery brokerage model ensures cost efficiency for long-term equity holders.
Key Features:
- Zero brokerage for delivery trades
- ARQ investment advisory powered by AI
- Smart money investment ideas for long-term growth
- GTT (Good Till Triggered) orders for strategic entry points
- Free research on over 500 companies
- No annual maintenance charges for active clients
6. Dhan
Introduction: As one of the newer entrants in the discount broking space, Dhan has quickly gained popularity among serious investors for its professional-grade tools and clean interface designed specifically for long-term investing.
Why Choose Dhan: Dhan focuses on providing institutional-quality analytical tools to retail investors. Their platform excels at portfolio diversification analysis and correlation studies that help long-term investors build resilient portfolios. The broker’s transparent pricing and absence of marketing gimmicks appeal to serious wealth builders.
Key Features:
- Flat ₹20 per executed order, regardless of order size
- Advanced portfolio analytics with risk assessment
- Custom screeners for value investing
- Dark mode interface to reduce eye strain
- One-click basket orders for portfolio rebalancing
- API access for automated investment strategies
7. 5 paisa
Introduction: 5paisa positions itself as one of the most cost-effective platforms for budget-conscious long-term investors who want to maximize their investment returns by minimizing costs.
Why Choose 5paisa: True to its name, 5paisa focuses on making investing affordable through rock-bottom pricing. Their lifetime free demat account option eliminates recurring costs that can eat into long-term returns. Despite the low costs, they offer surprisingly robust research tools that support fundamental analysis for long-term stock selection.
Key Features:
- ₹0 delivery brokerage
- Lifetime free demat account option
- Stock SIP feature for systematic equity investing
- Robust fundamental screeners
- Margin against shares for temporary liquidity
- Robo-advisory services for portfolio guidance
Comparison of Best Demat Accounts for Long-Term Investment
| Broker | AMC | Delivery Brokerage | Account Opening Fee | Research Quality | Mobile App Rating | Customer Support |
|---|---|---|---|---|---|---|
| Upstox | ₹0 | Free | ₹0 | 4.5/5 | 4.3/5 | 4.2/5 |
| Zerodha | ₹300/year | Free | ₹0 | 4.4/5 | 4.5/5 | 3.9/5 |
| Groww | ₹0 | Free | ₹0 | 4.0/5 | 4.8/5 | 4.1/5 |
| ICICI Direct | ₹975/year | 0.05% | ₹0 | 4.7/5 | 4.2/5 | 4.5/5 |
| Angel One | ₹0* | Free | ₹0 | 4.3/5 | 4.4/5 | 4.0/5 |
| Dhan | ₹450/year | ₹20 flat | ₹0 | 4.2/5 | 4.3/5 | 3.8/5 |
| 5paisa | ₹0** | Free | ₹0 | 3.9/5 | 4.1/5 | 3.7/5 |
How to Choose the Best Demat Account for Long-Term Investment
1. Focus on Cost Structure
For long-term investors, annual maintenance charges and delivery brokerage fees matter more than intraday trading costs. Even small recurring expenses can significantly impact returns over decades of investing.
Many investors focus too much on one-time costs rather than recurring fees.
A seemingly small AMC of ₹750 annually can add up to over ₹37,500 over a 50-year investment horizon, not counting the opportunity cost of those funds.
Prioritize brokers offering zero or minimal AMC charges and free delivery trades to maximize your long-term returns.
2. Evaluate Research Quality
Long-term investors rely on fundamental research rather than technical analysis. Access to quality research reports, screeners, and financial data is crucial for making informed investment decisions.
Many discount brokers offer minimal research support.
Without proper research tools, you risk making uninformed investment decisions that could cost you lakhs in potential returns.
Choose brokers that provide comprehensive fundamental analysis tools, detailed company reports, and sector analysis to support your long-term investment decisions.
3. Consider Value-Added Services
Features like dividend tracking, corporate action notifications, and portfolio analysis tools can significantly enhance your long-term investing experience.
Missing corporate actions like stock splits, bonus issues, or rights offerings can lead to financial losses.
If your broker doesn’t properly notify you about these actions, you might miss important deadlines or investment opportunities.
Select a broker with reliable systems for tracking corporate actions and providing timely notifications about events affecting your portfolio.
4. Assess Platform Stability
For long-term investors, the reliability of the trading platform matters more than its speed.
Some brokers experience frequent outages during high market volatility.
Being unable to access your account during critical market movements can be financially devastating.
Choose brokers with proven track records of platform stability and redundant systems to ensure continuous access to your investments.
5. Look for Goal-Based Investment Tools
Long-term investing is typically tied to specific financial goals like retirement, children’s education, or home purchase.
Generic platforms don’t help you track progress toward specific financial goals.
Without goal tracking, you may not know if your investments are sufficient to meet your future needs until it’s too late to adjust.
Select brokers offering goal-based investment tracking that helps visualize progress toward your specific financial milestones.
Essential Tools for Long-Term Stock Selection
When evaluating demat accounts, look for these research and analysis capabilities:
- Fundamental screeners – For filtering stocks based on financial metrics
- Company research reports – For understanding business models and prospects
- Sector analysis – For identifying growth industries
- Corporate action notifications – For staying informed about dividends, splits, etc.
- Portfolio analytics – For monitoring diversification and performance
Different brokers excel in different areas. Upstox and ICICI Direct offer superior fundamental research, while Zerodha provides excellent screening tools. Consider which research capabilities align with your investment strategy.
Frequently Asked Questions (FAQs)
Which demat account is best for beginners focusing on long-term investment?
Groww offers the most user-friendly interface with excellent educational resources, making it ideal for beginners committed to long-term investing. Upstox is also an excellent choice with its zero maintenance charges and intuitive platform.
Are there any completely free demat accounts in India?
While many brokers advertise “free” demat accounts, most charge either an AMC or have other fees. Upstox and 5paisa offer truly free lifetime demat accounts with zero AMC under specific conditions, making them cost-effective for long-term investors.
How important is broker research quality for long-term investors?
Very important. Long-term investors rely heavily on fundamental analysis rather than technical charts. Quality research helps identify companies with strong fundamentals for sustained growth over extended periods, directly impacting your returns.
Can I have multiple demat accounts for long-term investing?
Yes, you can open multiple demat accounts with different brokers. This approach lets you leverage specific strengths of different platforms, though it may complicate portfolio tracking and increase total maintenance costs.
What documents are required to open a demat account in India?
You’ll need a PAN card, an Aadhaar card, address proof, income proof, a bank statement, and passport-sized photographs. Most brokers now offer completely paperless account opening through e-KYC verification.
How do I transfer shares from one demat account to another?
You can transfer shares through the Delivery Instruction Slip (DIS) or online through your broker’s platform by initiating an off-market transfer. The process typically takes 3-5 working days and may involve nominal charges.
How do dividends get credited in a demat account?
Dividends are directly credited to your linked bank account, not your demat account. Your broker will handle the communication with companies in your portfolio and ensure proper crediting of dividends.
Is it better to choose a bank-based broker or a discount broker for long-term investment?
For long-term investors, discount brokers like Upstox or Zerodha usually offer better value due to lower maintenance costs. However, bank-based brokers like ICICI Direct provide advantages in integration with banking services and more personalized support.
Can NRIs open demat accounts for long-term investment in India?
Yes, NRIs can open special NRE/NRO demat accounts. Most major brokers, including Upstox, Zerodha, and ICICI Direct, offer NRI-specific services, though they may have different fee structures and requirements.
Is it possible to nominate someone for my demat account?
Yes, and it’s highly recommended for long-term investors. You can register up to three nominees for your demat account, who will receive your securities in case of an unfortunate event.
Conclusion
Selecting the right demat account is a crucial first step in your long-term investment journey. For most long-term investors in 2025, Upstox emerges as the clear leader due to its zero maintenance costs, excellent research tools, and user-friendly interface specifically designed for portfolio building rather than active trading.
Zerodha and Groww follow closely as excellent alternatives depending on your specific needs. While ICICI Direct charges higher fees, its comprehensive services may justify the cost for investors seeking integrated banking and investing solutions.
Remember that the best demat account for long-term investment is one that minimizes costs, provides robust research tools, offers reliable customer service, and stays out of your way while you focus on building wealth steadily over time. Take the time to open your account with a broker aligned with your investment philosophy—your future self will thank you for making this important decision thoughtfully.
