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Demat Account

Demat Account

A Demat Account gives you the convenience of managing your shares and transactions from any location. Before applying for a Demat Account, you should be aware of the various charges associated with it. Generally, these Demat charges are nominal.

While several brokers, financial institutions, banks and broking firms offering a free Demat Account to their customers, certain charges are levied on the customer at a later stage or after some time depending on the various options provided. It is essential for you to know all about the Demat Account charges.

The Demat Charges

Demat Account Opening Fees

Nowadays, the Demat Account opening charges levied by the DPs are either nominal. Banks provide it completely free if you set up a 3-in-1 account with them, i.e. a savings bank account, a trading account and a Demat Account. However, most private broking firms like Angel One have no account opening fees and provide a seamless account opening experience for you via their online trading platform. Nevertheless, if any additional costs are involved, such as stamp duty, GST and other statutory levies by SEBI, they will be charged as applicable. Therefore, you must always compare the various DPs and their Demat Account opening charges and choose the best one.

Demat Account Annual Maintenance Charges (AMC)

Some firms charge a basic fee, whereas a few DPs even waive off the Annual Maintenance Charge for the first year and start the billing cycle from the second year onwards. Each depository has its specific guidelines for Demat charges. For instance, Angel One does not charge any Annual Maintenance Charges for the first year. From the second year onwards, a monthly maintenance charge of ₹20 + taxes is levied. Angel One provides various value-added services such as online transfer of funds via net banking and UPI, Fundamental research, and artificial intelligence-based advisory ARQ Prime for technical and derivatives trading ideas so to name a few services. SEBI has revised the Basic Services Demat Account – BSDA, from 1st June 2019 with no annual maintenance charges for debt securities up to ₹50,000. Conversely, a maximum amount of ₹100 + taxes would be levied if the holding is from ₹50,000 up to ₹2 lakhs.

Demat Account Custodian Fees

DPs either charge a one-time fee, annually or unless specified. Most of the time, this fee is paid directly by the company to the depository, which is either NDSL or CDSL. The majority of the broking companies, like Angel One, waive off the custody fees.

Demat Account Transaction Fees

The transaction fee is also known as Demat Account brokerage charges, are charged for every transaction completed by the DP. Some DPs charge a percentage of the value of the transaction, while others charge a flat fee per transaction. Broking firms like Angel One charge a very minimal amount of zero brokerage on Equity Delivery Trading & ₹20/order Flat Brokerage for Intraday, F&O, Currencies & Commodity. Apart from the fees mentioned above, there are other Demat Account charges like credit charges, rejected instruction charges, various taxes and cess, delayed payment fees and so on. When you are in process of selecting a DP for your investor purpose, do make sure to have a look at all the charges that are levied to your Demat Account.

Principles of Insurance

The cost of opening a Demat account varies across different DPs. To illustrate, banks may charge up to Rs. 900 unless you are opening a 3-in-1 account that links a trading account to the bank account, while brokers, such as Angel One open a Demat account for free.
Yes, for the first year Angel One’s annual maintenance charges (AMC) are non-chargeable or zero. However, a monthly AMC fee of Rs. 20 along with taxes will be deducted from the second year and beyond.
Brokerage on a Demat account basically refers to the transaction fee charged by the DP for all trades that get executed. It can either be a flat fee per transaction or a certain percentage of the final transaction value.
The minimum brokerage charges for a Demat account differ as per the broker and the trade executed. Angel One charges no fee on equity delivery trades while an intraday trade attracts a nominal charge of Rs. 20 per order.
Yes, it is possible for trades to have zero brokerage fees. Usually, brokers, such as Angel One, have zero charges on equity delivery trades. However, nominal charges are applicable on other intraday, futures, and commodities trades.

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