There are different kinds of charges when you open a Demat account. Opening a Demat account online in today’s digital era is easy and helps in trading seamlessly. As a Demat account holds all your certificates in the form of digital means, it attracts an annual maintenance charge (AMC) by the brokerage firm or depository participant (DP).
What are AMC Charges?
The Account Maintenance Charges (AMC) is an annual charge levied by the brokerage firm to maintain your Demat account. AMCs usually cost between Rs 300 and Rs 900, which can be paid quarterly or annually. Investors opening a 3-in-1 Demat account with a bank attract lower AMC charges as all the three accounts (trading account, Demat account and savings account) come bundled with the same bank. So many brokerage firms offer free AMC charges for the first year to lure new customers to open their Demat account with them.
Additional Charges With Your Demat Account
In addition to AMC charges, there are five different charges when you open a Demat account.
Account Opening Charges
When you open a new Demat and Trading account, many brokers charge fees to their customers known as Account opening charges. These charges are one time fees only. Investors opening and closing a Demat account with banks are often charged with Account opening as well as Account closing charges. Choice does not levy any account opening charges from its customers.
When you buy/sell shares, for every transaction, brokers impose additional brokerage charges on their customers. In share market trading, there are four kinds of trading. Such as Intraday, Delivery, Futures and Options trading. For every segment, brokers charge different brokerage fees. These charges are applicable both in buying and selling your shares. Choice offers the lowest brokerage charges for its investors. To check the brokerage charges to understand in detail.
Fund Transfer Charges
There are different ways of transferring funds such as Payment gateway, NEFT, RTGS, IMPS and Cheque. When you transfer funds from the payment gateway of your brokerage account to the trading account, there are transaction charges that you have to pay. We advise you to pay through UPI as it attracts no transaction charges. Also, payments done through NEFT, RTGS, IMPS and Cheque do not attract any transaction fees.
Depository Participant Charges (DP Charges)
Investors have to pay DP charges for selling their delivery shares. There are two components in a DP charge. The first one is the mandatory charges as per CDSL/NSDL and the second component is brokerage charges by your Broker. For CDSL, you have to pay Rs 5.50 and for NSDL you have to pay Rs 4.50 for selling one company one/multiple shares. Also, there is an additional GST charge added to your final charges. Usually, the DP charges are between Rs 12- Rs 30. The DP charges for Choice is only Rs 10 which is the lowest in the industry.
Call and Trade Charges
Many brokerage firms have call and trade facilities available for customers on their websites and mobile apps. So when you call your Relationship Manager or your broker to call and trade, there is a minimum charge per trade which is levied by the firm. Many brokerage firms charge Rs 15-50 per trade. In Choice, we have a free Call and Trade facility for customers.
Additional Service Charges
For Intraday trading, your broker can automatically square off your trades. Many brokerage firms charge up to Rs 50 per trade for this. In Choice, we provide free auto square off charges for our customers.
When you open a Demat account online, there are many hidden charges along with AMC charges. At Choice, you get free AMC in the first year and minimum fees for the following years. Also, there are no hidden charges, free Call and trade facility, free auto square off charges and the lowest brokerage fees in the market.