All of us hold our money in a Bank account. Similarly, Demat account is required to hold your equities and other financial securities, including – mutual fund scheme unit, insurance policies, debentures, government bonds and national savings certificate. In India, NSDL and CDSL are the organisations that hold demat accounts. And to manage your demat account, a fee is charged which is known as the Demat charges.
We witness many advertisements stating free Demat accounts by stock broking houses. But the question is – Are Demat accounts actually free of any charges? Let us find out all about it…
Many depository participants (DP) allow for zero account opening charges, but this is not applicable forever. Zero charges are only applicable during opening a new account. As per Edelweiss, no account opening fees are charged to Open a Demat & Trading account.
The Annual Maintenance Charges (AMC) are minimal and varies according to the different broking houses. Some broking houses may start charging you for annual maintenance at once when you open an account with them and some may not charge you for the first year but, will initiate the charges from second year onwards. In Edelweiss, for Trading Account there is no AMC and for Demat Account AMC charge is free for the first year. From second year onwards, an amount of Rs. 500/- + applicable taxes will be charged.
Custodial fee is imposed by the depositories, which are directly paid by the company itself to the depositories. Other than that, per-transaction fees or brokerage charges are levied. A certain amount is to be paid, every time a financial security transaction is made from your demat account.
Please find below the details of Standard brokerage charges applicable for your account by Edelweiss:
These are the charges that are applicable on a Demat account. Open your account now and stay invested!