Demat Account Charges: After the covid pandemic, common people’s interest towards stock market has increased. This is the reason why the number of people opening demat accounts is also increasing. Nowadays opening and operating a Demat account has become very easy. With mobile trading apps, you can open a demat account and start trading within minutes. This mobile trading platform also provides its customers with features like live portfolio review, market updates, stock price alerts, real time market news updates, notification alerts, intraday tips. By this, it becomes easier for investors to buy and sell shares wisely. However, there are some charges associated with a demat account, which most people do not understand. Let’s know the details.
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How to open an account
To open a Demat account, you first need to select a Depository Participant (DP). These are usually brokerage firms or banks that offer the option of opening a demat account with them. After this, you can either upload the required documents yourself following the DP’s guidelines or take the help of the DP’s relationship manager. In view of the competition, many DPs in India are opening demat accounts at no cost. However, DPs usually charge an annual maintenance charge for demat accounts. These charges may vary.
This PSU stock will cross ₹5500, the company has orders worth ₹94000 crore
Power share of ₹ 4 to ₹ 1 lakh to ₹ 1 crore, now foreign investors will sell 65 lakh shares
Transaction fees
Let us tell you that after your demat account is opened for trading, you can deposit money in it and start trading. When you buy or sell shares, your broker will deduct a percentage of the amount from the total transaction value. Some brokers may charge a fixed fee regardless of the total transaction value. For example, if your transaction value is ₹1,00,000, the broker may charge only ₹20 instead of 0.10% of the total transaction value, which would be ₹100.
Broker Transaction Charges
Let us tell you that brokers usually base their transaction charges on the value of your transaction. Whether you make significant profits or suffer heavy losses, transaction charges remain the same. In equity trading you have the flexibility to choose how many shares you want to buy or sell. However, trading transactions in derivatives take place in lot sizes. This is similar to an IPO, where it is not possible to buy individual shares.
In terms of transaction charges, brokers generally charge a fixed fee or a percentage of the total transaction amount in the equity segment. In the derivatives segment, transaction fees are charged on a per-lot basis.