Once you open your demat account, you sign-up to pay certain charges for the services you get in return. The charges vary on the kind of stockbroker you choose to open a demat account with. In this article, we talk about how much charges for a demat account do you have to pay.
All the stockbrokers (Bank-based, full-service, or discount brokers) charge differently according to the services they provide. A discount broker usually charges the least amount of money among the three but a full-service stockbroker offers much more value for the money it charges.
A lot of times, the investors are unaware of the charges that are levied upon them. Do those charges sound alien to you too? No worries as we look at how much charges do you have to pay for your demat account.
Demat Account Opening Charges
Most of the stockbrokers charge zero fees for opening a demat account. Although some stockbrokers charge money for opening an account too, the amount is moderate only.
- Normally, the account opening charges range from 0 to ₹ 300 except for Bank-based stockbrokers.
- Bank-based brokers can charge up to ₹ 1000 for opening an account.
- At the same time, they also offer 3-in-1 services, i.e, you can have your demat, trading, and bank account with them together.
Demat Account Custodian Charges
To keep your account and the shares inside it safe, some DPs charge a nominal custodian fee since they have to pay an amount to the depository themselves. It depends on the number of shares you have in your account.
- The custodian charge is generally in a range from ₹ 0.5 to ₹ 1 per share.
- Most of the DPs don’t charge any custodian fee at all in order to lure more customers since the competition among them is high.
Demat Account Maintenance Charges
Once you open your demat account, you have to pay a charge for its maintenance too. It could either be a monthly, quarterly, annual, or a simple one-time payment for the entire life (provided you fulfill certain terms & conditions).
- A lot of stockbrokers waive off the AMC completely in the first year to bring more customers but they start charging AMC from the second year.
- Again, the AMC depends upon your stockbroker. Usually, a discount broker has the least AMC while a bank-based stockbroker charges the most but all of them charge a moderate amount only.
- The value of AMC generally falls in the range of ₹ 250 – ₹ 800 per year.
Having a demat account is the most basic requirement if you want to trade in the stock market. However, nothing comes for free in today’s world and age and especially not a service like demat account.
We hope we helped you see how much charges are levied on your demat account through this article.
