Demat Account Fees and Charges
Demat account holds your securities and manage your transactions made on the stock exchanges. It eliminates the requirement of physical shareholding certificates. There are some nominal charges associated with demat account. Let’s read about them.
Charges on Demat Account
• Demat Account Opening Charges
Stock brokers provides the facility of Demat account opening. Stock brokers who are registered with either CDSL and NSDL can provide demat account facilities to the customers. CDSL and NSDL are the Depositories of India and stock brokers acts as a Depository Participant (DP).
Some nominal fee is charged by stock brokers while opening a demat account. Demat account opening charges may vary from broker to broker. This is a one-time fee.
• Demat Account Maintaining Charges
Annual Maintenance charge is generally known as AMC. This fee is charged annually to maintain your demat account. It generally varies from ₹250 - ₹900 per year as different stock brokers have different annual maintenance charges. Also, some stock brokers waive off the AMC for the first year.
• Demat Account Safety Charges
Before demat account, investors had to hold and maintain the physical share certificates. But now, maintaining physical shareholding certificate is eliminated as Depository participant (DP) holds and maintain those shares to increase the safety of your shares. DPs charges some nominal fee for this which is known as demat account safety charges. Some DPs do not charge this fee while some does on monthly basis.
This fee depends upon the no. of securities held in your demat account. It generally varies from ₹0.5 - ₹1 per International Securities Identification Number (ISIN).
• Demat Account Transaction Charges
This charge is applicable on the transactions which you make with your demat account. Some DPs charges transaction charges on monthly basis while some charges this fee during buying or selling the securities. This charge differs for different brokers.
List of Stock Brokers Providing Demat Account Services
There are many stock brokers who provide demat account opening facility. Below is the list of top stock brokers.
1. Alice Blue
2. Angel One
3. Zerodha
4. StoxKart
5. ICICI direct
Also read: Why Demat Account is Required in Indian Stock Market
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