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Best Demat accounts for NRI with easy remittance options

Ajay Bohra

December 15, 2024

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In this article, we will look at the top 4 Best Demat accounts for NRI with easy remittance options. For Non-Resident Indians (NRIs), investing in the Indian stock market has a huge amount of potential. It gives you a chance to make money in an economy that is growing and keeps you in touch with your financial roots back home. But it can be hard to figure out how to invest as an NRI, especially when it comes to picking the right Demat accounts for NRI with easy remittance options. You can use this blog post as a complete guide to help you understand the exciting world of investing in the Indian stock market.

Understanding Demat Accounts for NRIs

Your investments in the Indian stock market are kept in electronic form in a dematerialized (demat) account, which is like a digital vault. For you to be an NRI, you need a non-resident external (NRE) demat account that is linked to your NRE bank account. It is easy to buy, sell, and hold Indian stocks and Exchange Traded Funds (ETFs) with this account. Picking the right NRE demat account is very important for a smooth investment process.

A repatriable remittance option means that you can transfer the money from your NRE (Non-Resident External) bank account to your foreign bank account after paying the applicable taxes. A non-repatriable remittance option means that you can only transfer the money from your NRO (Non-Resident Ordinary) bank account to another NRO account or to a resident Indian account, and you cannot take it back to your foreign bank account.

Considerations Taken to choose the Best NRI Demat Account

• The type of broker: Both full-service brokers and discount brokers have been considered for choosing the best Demat accounts for NRI with easy remittance options. A full-service broker will offer you more services and guidance but will charge higher fees and commissions. A discount broker will offer you lower fees and commissions but will provide fewer services and support.
• The type of bank: Consideration is taken for the bank that offers both NRE and NRO accounts, as well as PIS permission, so that you can invest on both a repatriable and non-repatriable basis. We also checked the bank’s remittance charges, exchange rates, and customer service while choosing best Demat accounts for NRI with easy remittance options
• The type of depository: We chose a depository that is registered with either NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited), as they are the two main depositories in India that hold your securities in electronic form. We considered Depository’s annual maintenance charges, transaction charges, and security features while choosing the best Demat accounts for NRI with easy remittance options.
• Brokerage Charges: We looked at the prices that different brokers charge for brokerage.
• Account Maintenance Charges: Some brokers charge maintenance fees once a year. To get the most out of your money, we chose accounts with few or no fees like these.
• Remittance Options: We looked for brokers while choosing Demat accounts for NRI that offer easy and convenient remittance options when you want to deposit money into your NRE account from outside of India. This includes wire transfers, online banking, or setting up a bank account in another country.
• Minimum Investment Requirement: Some brokers may have a minimum investment needed to open an NRE demat account. Consideration has been taken to choose Demat accounts for NRI which has less or no minimum Investment Requirement.
• Platform and Services: We looked at how easy it is to use the broker’s mobile app and online trading platform. We also find out if they offer research reports, investment advice, or any other services that are specifically designed to help NRIs.
• Reputation and Brand: While choosing the best Demat accounts for NRI with easy remittance options we looked for brokers that has been around for a long time and has a good reputation. They should also have a history of helping NRI clients.

Based on these factors, we have shortlisted some of the best Demat accounts for NRI with easy remittance options:

4 Best Demat accounts for NRI with easy remittance options

If you are an NRI and want to trade stocks, you need to make sure you have the right Demat account. Let’s look at the best Demat accounts for NRI with easy remittance options, along with how to open an account and the documents you’ll need.

1. Zerodha NRI Demat Account

• Rating: 9.37/10
• Features:
  • Largest and trusted discount broker with over 50 lakh users.
  • User-friendly platform for hassle-free trading.
  • Easy remittance options for seamless fund transfers.
• Why Choose Zerodha?: Zerodha offers a robust platform and efficient customer support, making it an excellent choice for NRIs.
• With more than 50 lakh customers, Zerodha is one of the most well-known discount brokers in India. They offer a Demat account for NRIs.
• Associated banks: This is a 2-in-1 account that NRIs can use. It has both a trading account and a Demat account. Zerodha has joined up with HDFC Bank, Axis Bank, and Yes Bank to give NRIs access to NRE/NRO accounts and PIS.
• Pricing & Brokerage charges: For trades in stocks, Zerodha charges a flat fee of Rs. 200 per order. When you trade stocks during the same business day, the fee is either 0.1% of the order amount or Rs. 100, whichever is less.
• Tools & Offerings: You can use Kite, Coin, Console, Varsity, and other trading platforms and tools on Zerodha if you are an NRI.

2. Sharekhan NRI Demat Account

• Rating: 9.26/10
• Features:
  • Full-service stockbroker with a large client base.
  • Comprehensive investment options, including equity and derivatives.
  • Dedicated NRI services for personalized assistance.
• Why Choose Sharekhan?: Sharekhan provides expert advisory services and a wide range of investment opportunities.
• Over 20 lakh people use Sharekhan, which makes it one of the largest full-service brokers in India. They offer a Demat account for NRIs. Sharekhan offers a 3-in-1 account for people who are not in India.
• Associated banks: It works with IndusInd Bank and has a trading account, a demat account, and an NRE/NRO bank account. It is also possible for NRIs to get PIS permission from Sharekhan through IndusInd Bank.
• Pricing & Brokerage charges: You have to pay either 0.5% or 10 rupees per order when you trade stocks on Sharekhan. You have to pay either 0.1% or 10 rupees per order for trades that happen during the same day.
• Tools & Offerings: Some of the trading platforms and tools that NRIs can use on Sharekhan are TradeTiger, the Sharekhan App, Sharekhan Classroom.

3. IIFL NRI Demat Account

• Rating: 9.17/10
• Features:
  • India Infoline Financial Limited (IIFL) is a prominent full-service stockbroker.
  • Extensive research reports and market insights.
  • Easy remittance channels for NRI investors.
• Why Choose IIFL?: IIFL combines research expertise with personalized services, catering to NRIs’ investment needs.
• IIFL Demat account for NRIs: IIFL (India Infoline) is another well-known full-service broker in India. It has more than 23 lakh clients. IIFL gives NRIs a 2-in-1 account that can be used for both trading and demat.
• Associated banks: IIFL is working with ICICI Bank, HDFC Bank, Axis Bank, and Yes Bank to help NRIs open NRE and NRO accounts and get permission from the PIS.
• Pricing & Brokerage charges: IIFL fees 0.75% or Rs. 25 per order for stock trades that are delivered, whichever is greater. The fee for trading stocks during the same business day is either 0.05% or Rs. 25 per order, whichever is greater.
• Tools & Offerings: There are also trading platforms and tools from IIFL for people who are not Indian citizens (NRIs). These include the IIFL Markets App, the IIFL Trader Terminal, IIFL Research Reports.

4. Kotak Securities NRI Demat Account

• Rating: 9.12/10
• Features:
  • Offers a plethora of investment options.
  • Expert advisory services for informed decision-making.
  • Streamlined remittance facilities for NRIs.
• Why Choose Kotak Securities?: Kotak Securities ensures a seamless experience for NRI investors, backed by a strong research team.
• Kotak Securities is a branch of Kotak Mahindra Bank, which is one of the largest private banks in India. It is possible for NRIs to get a 3-in-1 account from Kotak Securities.
• Associated banks: It works with Kotak Mahindra Bank and has a trading account, a demat account, and an NRE/NRO bank account. You can also get PIS permission from Kotak Securities through Kotak Mahindra Bank if you are an NRI.
• Pricing & Brokerage charges: If you want to trade stocks, Kotak Securities charges 1% or 10 rupees per order, whichever is less. They charge 0.05% or 10 rupees per order for trades in stocks that happen during the same business day.
• Tools & Offerings: NRIs can also use a number of trading platforms and tools from Kotak Securities, such as KEAT Pro X, the Kotak Stock Trader App, Kotak Research Reports.

How to Open a Demat Account for NRIs:

1. Choose Account Type:
   • Decide between a “repatriable Demat account” (for funds repatriation) or a “non-repatriable Demat account” (for non-repatriable funds).
2. Required Documents:
   • Fill out the Demat account application form.
   • Self-attest and notarize essential documents (e.g., passport-sized photo, PAN card, overseas address proof, visa, and passport photocopy).
   • Connect your NRO/NRE bank account to the Demat account.
   • Nominee details with photograph and signature.
3. Submission:
   • Send the completed form and documents to depository participants or brokerage firms.
   • Certification by the Notary, Banker, or Indian Embassy in your country of residence is essential.

Who Is an NRI?

• According to India’s Foreign Exchange Management Act (FEMA), an NRI is:
  • An Indian citizen residing abroad for employment, business, or other reasons.
  • A foreign national of Indian origin living outside India.
• Even if an individual stayed in India for less than 182 days during the preceding financial year, they are considered an NRI.
• NRIs play a crucial role in contributing funds to India’s economy through remittances.

Types of NRI Demat Accounts

1. PINS (Portfolio Investment NRI Scheme) Account:
   • Allows trading in equities and shares in the Indian stock market.
   • Further classified into:
     • NRE PINS Account: Funds can be repatriated to the foreign country.
     • NRO PINS Account: Funds must remain within India.
2. NON-PINS Account:
   • Used for investing in Initial Public Offerings (IPOs) and mutual funds.
   • Similar classification as PINS accounts:
     • NRE Account: Allows repatriation of funds.
     • NRO Account: Does not allow repatriation.
   • Also permits trading in derivatives using a CP (Custodian Participant) Code.

Benefits of NRI Demat Accounts

1. Investment Opportunities:
   • Trade and invest in India’s economy.
   • Automatically update all stock market investments in your Demat account.
2. Efficiency and Management:
   • Save time by managing all securities in one place.
   • Easily track and monitor your holdings.
3. Repatriation of Funds:
   • With an NRE Demat account, you can bring funds back to your country of residence.

Why do you need a remittance option for your Demat account?

As an NRI, you need a remittance option for your Demat account because you have to link your Demat account with either an NRE or an NRO bank account, depending on whether you want to invest on a repatriable or non-repatriable basis. You also need PIS (Portfolio Investment Scheme) permission from the RBI (Reserve Bank of India) to invest in the Indian stock market through your Demat account.

A remittance option for your Demat account will help you to:

• Transfer funds from your foreign bank account to your NRE or NRO bank account, and vice versa, for investing in the Indian stock market.
• Receive dividends, interest, or capital gains from your investments in your NRE or NRO bank account.
• Convert your foreign currency into Indian rupees, and vice versa, at competitive exchange rates.
• Save on transaction fees and taxes by choosing the right remittance option for your Demat account.