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Should I Use SBI Securities for My demat account?

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The answer of it depends on what SBI Securities offers you and at what cost.

Warning- If you are too lazy to read here’s a detailed video to watch

SBI has become the first and trusted bank name for every Indian, causing them 45 crores (450 million) saving accounts in their banks, however, the inverse is true for demat accounts for the SBI-backed SBI securities, as only 6.25 lakh demat accounts are registered with SBI securities.

Why is SBI unable to attract its user base to its demat brokerage firm? Scroll down to find out. however, if want a video explaining all of it, here’s one.

Table of Content

What Advantages do SBI securities offer you?

  •  3 in 1 account: If you have SBI securities demat account, you will gain access to the Demat, Trading & Saving account all at once. It helps you to access bank schemes (e.g. FD) and at the same time allows you to trade.
  •  Provides Relationship Manager: SBI Securities provides a relationship manager to address problems with low traffic, and the calls are quick and efficient. 
  •  Grievances & Redressal System: If you are having any grievances, SBI securities provide 4 levels Grievance redressal system to address your problem in various levels at intervals of 2 days.
  •  Access to branch Network: SBI securities give access to the branch network to users, making it much easier for offline traders.
  •  Provides Recommendation for the Stocks: SBI Securities provides required data analytics, and the call to buy/sell the stocks, even if you don’t have advanced knowledge, making it convenient for the newbies.

It seems SBI securities are quite a good option, but isn’t it too good to be true? That is because you haven’t known about the other side of the coin, which is the major reason for the low demat accounts on the platform.

sbi securities home page

What Disadvantages do I have to keep in mind?

  • Opening and Maintenance Charges – While account opening charges (500 Rs. + GST), its AMC (Annual Maintenance Charge) is 500 per year making it unpopular in the competitive demat brokers business. However, the AMC for the first year is free but that doesn’t do the work for long-term traders.
  • Trade Charges – The SBI securities brokerage charges are percent based on Equity trade, for (0.50%) on Equity Delivery, while (0.05%) on Equity Intraday. For option delivery, it charges (100 Rs. / trade) while for option intraday (50 Rs./trade). From a competitive perspective, the prices are high compared to other platforms.
  • Average mobile app Interphase– SBI securities mobile app does not have a rating is 3.9, low but crucial when the other broker app have at least 4/5 as their rating. In addition to it, SBI securities don’t provide any margin calculator available to any discount broker at ease.
  •  Miser Margin Provider – For SBI demat account holders, the margin is something rare, as it offers 5X intraday & no margin for delivery.
  •  Different charges for Penny stocks – SBI deposit charges relatively higher brokerage for Penny stocks than brokerage for regular stocks.
  •  No Customers support – SPI Securities doesn’t provide satisfactory customer support when it comes to the app.

Who should open the Demat account at SBI deposits?

If you want to enjoy banking schemes with the same account as trading & demat, or someone who is much more comfortable offline than online, an SBI deposit is definitely gold for you.

When should you look for alternatives?

If you are someone who considers SBI Deposit charges absurd, or searching for a better mobile application interface with a higher rating or expects a better margin for intraday or delivery from a broker with extensive customer support. It is better to look for alternatives.

But are there any alternatives? There are plenty

Angel One – It manages 3,53,18,357 clients in FY 22-23.

Upstox – Offers free Demat & trading account.

Zerodha – Charges 0 brokerage for trades.

Groww – Enables you to trade in US stocks.

Click Here, if you are worrying about how you can transfer your past shares from Upstox to Zerodha.

Should I Use SBI Securities for My demat account?

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