Demat account opening is as easy as starting a savings account in a bank. A demat account is really a dematerialized account that holds dematerialized shares, just like your saving bank account holds your savings. An account has to be opened with a depository participant (DP). All of the banks and broker agents that offer depository services are DPs, but all of the DPs aren't banks or brokers.
There's a certain amount that is supposed to be taken care of in the bank savings account in order to continue availing the bank's services. But in the case of demat account, you will find mainly 4 costs which are levied about it. The four charges are Account beginning fee, annual maintenance cost, transaction fee and custodian fee. Each one of these costs are very different for every DP.
Account opening fee is supposed to be paid just during opening the demat account. Charging opening fee through the consumer is not required and therefore the DP may or may not charge it. However, a few stock investing brokers and lenders may levy a minimal charge for the stamp documents that would be required by you for executing the contract along with your DP.
Yearly servicing fee annual maintenance costs are also referred to as folio upkeep fee, which is usually charged in advance.
In online trading, trades are executed through an online trading platform given by the online broker. The agent, via their program provides the trader access to market data, news, graphs as well as notifications.
Brokerage fee levied for that debiting and/or crediting of shares from and to the consideration each month. A few of the DPs levy a set volume as fee for every transaction, while other few compute their fee based on the entire worth of the transaction. Apart from that, a few of the DPs offer frequent trader accounts in which the active traders are faced with lower fees as compares to the charges levied by them around the non-frequent investors.
Custodian fee this is billed from month to month and is determined on the basis of the number of shares your demat account holds. The fee is billed somewhere between INR0.5 to INR1 per share monthly.
