SBI Demat Account Review: What You Need To Know

The SBI Securities is the stockbroking division of the State Bank of India. It prides itself as one of the fastest-growing investment platforms in the country. With over 1.7 million customers in 200+ different locations, SBI Securities claims its spot as one of the top investment choices. If you’re planning to explore this provider, this SBI demat account review is the right page for you.

Here, we will discuss SBI offers, how to open an account, pros and cons, and a lot more. Read on to see if SBI Securities match your investment needs.

Background of SBI Securities

SBI Securities is a subsidiary of SBI Capital Markets Ltd. This stockbroking arm was launched in 2006, which is earlier than Zerodha and Upstox.

Since they are part of a state bank, SBI Securities will surely offer a lot of convenience to customers. They also have a pool of investment products, including currency derivatives, insurance, mutual funds, equity, IPOs, ETFs, and more. You can trade and manage all of these in their 3-in-1 demat.

Moreover, SBI Securities allow their customers through their mobile and web platforms. They also have investment advisors in their 70+ branches. Unlike Upstox, you can visit an actual office to suit the investment strategy you like.

Overall, SBI Securities aim to be a ‘Digital First’ company to bring investments closer to the people. Through this, customers will only have to visit one platform for all their investments.

Are you curious about the trading platform of SBI Securities? Here’s a quick look on their new trading app:

Pros and cons of SBI Securities

Advantages of SBI

SBI demat account review
  • They are highly trusted. One of SBI’s strongest suits is its reputation. They are part of the trusted state bank, so customers are assured that their investments are safe. This makes SBI Securities a good choice for newbies who want to skip the guesswork of finding a trustworthy trading platform.
  • They offer 3-in-1 demat accounts. SBI Securities offer a 3-in-1 demat account, which combines a trading account, savings account, and demat account. So, if you already have an account with SBI, your application would be much easier. Also, the good thing is that the SBI Securities and the state bank are under the same roof.
  • Various tools for customers. At SBI Securities, customers can access analysis and research report tools for trading. This is free and helpful, especially for those who are new to trading.
  • A wide range of products. The investment arm of SBI Securities is probably the strongest among demat providers. Customers can choose from various assets, which are all safeguarded in the company’s demat platform.
  • They have physical offices. Since SBI Securities is connected to the State Bank of India, you can actually visit the bank for your demat concerns. This makes the process easier, especially for urgent issues. Overall, they have 1,000+ demat-enabled branches.
  • Ability to pledge and unpledge. Another flexibility you’ll enjoy from SBI is the option to pledge and unpledged securities. You can do this anytime and anywhere using their digital platforms.
  • Detailed quotes. SBI Securities provides detailed quotes for each asset you’re going to avail. This includes company profiles, risk-return, charts, and more. This saves you from the hassle of manually researching the information on your own.
  • They offer margins. With SBI Securities, you can buy stocks on margins as low as 25%. It’s an added convenience for competitive traders.
  • No minimum balance is required. There’s no need to maintain a specific balance on your SBI demat account. But if you want an added edge on the market, keeping at least Rs 10k would be ideal. Nevertheless, this is purely based on your preference.
  • Demat rewards. SBI also provides rewards to demat account holders through their SBI REWARDZ scheme. This includes vouchers and coupons for shopping for a variety of products. It’s a neat benefit, which we don’t always find on other providers.

Disadvantages of SBI                                   

  • Long waiting time for demat account opening. One of the downsides of SBI Securities is it takes them at least three days to open your demat account. Sometimes, it can stretch for 15 days. While you can check your account status anytime, it’s still a long wait.
  • High call & trade charge. For the first month of your account, you’re going to enjoy free call & trade. But after that, you’ll be charged Rs 10 for each call. Some traders find this quite intimidating.
  • High brokerage fees. Compared to Zerodha and Upstox, SBI Securities charge much higher brokerage fees. For example, Zerodha offers free equity delivery. But in SBI, that will cost you 0.50% on the lowest turnover threshold. Nevertheless, we think this is mainly due to the fact that SBI Securities is part of a bigger financial institution.
  • Expensive annual fee. SBI Securities charge customers an annual fee of Rs 400 as a maintenance charge. But if you’re going to receive your account statements by email, the fee would be Rs 350. Still, this is slightly higher than Zerodha’s Rs 300.

Is SBI demat the best choice for me?

If you want a demat provider with the highest trust rating, SBI Securities might be the best choice. They are under the wing of the State Bank of India, so it’s state-regulated. As a result, you’re less likely to experience fraud.

However, SBI Securities have slightly higher fees than discount brokerage services. This is, of course, is a trade-off for the peace of mind you’ll enjoy.

Also, SBI Securities is more convenient if you want a 3-in-1 demat account. Other providers will outsource their banking partnerships, but with SBI Securities, you’ll get it from a single group of companies.

Moreover, if you wish to buy stocks with long-term delivery, SBI Securities would be worth it. But when it comes to trading, you’re free to explore cheaper alternatives like Zerodha or Upstox.

How to open an SBI demat account

SBI Securities have what they call the ‘Power Demat’, which is their 3-in-1 demat offering. Here are the general steps on how to open one:

  • Download the YONO App by SBI. YONO stands for You Only Need One app, which is used for a variety of SBI transactions.
  • Submit all the necessary documents, including a copy of your Aadhar card, PAN card, canceled cheque, proof of address, and a passport-sized photo. If you’re planning to trade derivatives, you should also show proof of income.
  • After that, you need to visit an SBI branch for the KYC process. You only need to do this once, and the rest of the process will be done online.
  • Next, you have to wait for a few days until you receive an email containing your SBI demat account details.

SBI Securities applications

SBI Securities offer a wide range of applications to help demat account owners and traders get the most out of their investments. Here’s a quick look at each one:

  • SBI Smart Xpress. This application serves as the trading platform of SBI Securities. Here, you can watch live streams of market data, historical data, and on-screen alerts. You also get to access charting tools and research reports on this app. Also, trades in the SBI Smart Xpress are delivered swiftly.
  • SBI Smart Money. With SBI Smart Money, you’ll get to check a multi-dimensional view of their portfolio. This platform also contains research ideas, news & analytics, actionable watch list, and screeners. This platform also allows you to use a sample portfolio through a combination of stocks.
  • SBI Smart Website. The Smart Website is where your major actions occur. This is where you perform fund transfers to your demat account. You can also perform lightweight trading here as well as monitor the actionable watch list.
  • SBI Smart Mobile App. The SBI Mobile app allows account holders to access the trading platform on the go. It has a market watch feature together with check order status, live market tracking, and access to live quotes.

SBI customer service

If you have urgent concerns about your account, the fastest way for a resolution is to go to the nearest SBI branch in your area. There are over a thousand demat-enabled SBI branches in the country, so it’s far more convenient than other providers.

You can also email them at helpdesk@sbicapsec.com or call at 022 6854 5555. For non-urgent concerns, you can send a support ticket on their website.

Overall, they categorize concerns from Level 1 to Level 4. Level 4 is when you don’t receive any useful results after the three levels. They have a separate email for such concerns: escalations@sbicapsec.com.

SBI Securities withdrawal and deposit terms

Overall, you can withdraw and deposit any amount to your SBI Securities account. However, assets like Futures and Options may require a higher margin.

Since SBI Securities offer a 3-in-1 demat, transferring your funds is seamless. There’s no need to enroll in other banks.

SBI Securities fees and charges

Like any brokerage service, SBI Securities charge a variety of fees. This depends on the transaction made. Here’s a rundown of some of the demat and trading fees:

DEMAT/TRADING ACCOUNT STANDARD CHARGES
SBI Securities Demat Opening FeeRs 100
SBI Securities Trading Account Opening FeeRs 400
Annual Maintenance Charge (AMC)Rs 400/Rs 350 for those
with email statements
DELIVERY BROKERAGE FEES
Monthly TurnoverRates
0 to 5 lakh0.50%
5 to 10 lakh0.45%
10 to 25 lakh0.40%
25 to 50 lakh0.35%
50 to 75 lakh0.30%
75 lakh to 2 crore0.25%
Above 2 crore0.15%
INTRADAY TRADING FEES
Monthly TurnoverRates
Less than 25 lakh0.15%
25 to 50 lakh0.12%
50 lakh to 1.5 crore0.10%
1.5 to 3 crore0.08%
3 to 6 crore0.07%
6 to 10 crore0.06%
More than 10 crore0.05%

Frequently Asked Questions

Q: Is the SBI trading account good?

A: As a trading platform connected to the state bank, SBI Securities sure have an advantage over other stockbrokers. Their fees are reasonably priced, and opening an account is also easy. They are also one of the trusted trading platforms in India.

Q: Is SBI demat account safe?

A: SBI Securities observe the highest standards when it comes to the security of your demat or trading account. They also pledge transparency as to how they handle and process your money. Besides, SBI demat accounts are opened through the supervision of the state bank. It’s a guarantee that your information and investments are secured.

Q: How can I check the status of my SBI demat account?

A: You can visit the SBI Smart website or contact the company’s customer service agent to inquire about your demat account opening. You can also visit an SBI branch near you for a faster answer. Make sure that you provide them with your PAN and reference number.

Q: How do I close my SBI Securities demat account online?

A: If you wish to close an SBI demat account, you’ll have to fill out a demat closure form. You’ll have to submit this to a branch together with the necessary documents. You can also mail the documents if you don’t have the time to visit a branch in person.

Q: Can I open an SBI demat account online?

A: Through the SBI Yono App, you can now open both a demat and trading account online. However, you still have to wait for your demat account to become active. While waiting, you can check your demat opening status using the SBI Smart website.

Q: IS SBI Securities good for beginner traders?

A: SBI Securities provide a lot of tools and knowledge base, so they are suitable for beginners. If you have questions or concerns, they also have multiple points of contact. You can also visit a nearby branch if you want to clarify something about your demat account.

Final words

Just like any demat provider, SBI Securities have its share of pros and cons. We hope that this SBI demat account review gave you a firsthand assessment if it’s the right fit for you. As part of the State Bank of India, your investments are in good hands. SBI is also one of the trusted trading platforms for beginners and experts alike.

Do you have an SBI Securities demat account? How’s your experience so far? Let us know in the comment section below.