Are demat accounts free in India?
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- Updated On:17-Oct-2022
- Replies:1
Short Answer
Demat accounts are not completely free in India. They come with different charges that are charged by the broker or Depository Participants (DPs). These charges vary from broker to broker and are charged quarterly or annually.
Detailed Answer
A demat account, also known as a dematerialized account, is required to hold financial securities in digital form and to transact in shares on the Indian stock exchange.
Many discount brokers or broking companies allow you to open a demat account. However, today we will see whether these demat accounts are free in India or not.
Are demat accounts free in India?
Demat accounts may or may not be free in India. They come with different charges that are levied by the brokers under whom one opens his or her demat account.
The charges are generally in the form of Account Maintenance Charges (AMC). These fees differ from broker to broker; some charge no AMC fees, some charge a one-time fee, and some offer a free year before charging regular rates.
Different brokers and their AMC charges
1. Zerodha
- Individuals, HUFs, and partnership firms Annually ₹300 + 18% GST and Quateraly ₹75 + 18% GST
- NRIs Annually ₹500 + 18% GST and Quateraly ₹125 + 18% GST
2. Groww - Zero AMC
3. Upstox - ₹150 + GST = ₹177 /- (Non-refundable)
4. Motilal Oswal - Rs 550 per year
5. FYERS - Zero AMC
6. 5Paisa - Rs 300 per year
7. Angel One - Rs 240 per year
8. Ventura - No AMC
9. Prostocks - No AMC
Other charges levied by the DP
Depository Participants (DPs) or brokers also charge for the transactions that are happening in your Demat account. These charges vary from broker to broker and are usually calculated as a per-transaction fee for each stock you buy or sell during a given day.
Some brokers additionally charge their investors a custodian fee (safety charges). The Custodian fee is paid to the depository (NSDL and CSDL ) for their services and especially for the safety of investors' holdings. The custodian fees are typically paid once to the depository by the majority of Depository Participants (DPs), though some
DP charges these on a monthly basis.
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Discussion (0)
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.
I was just going through some stock broker reviews. So, I thought of sharing my opinion, A side by side Comparison of two popular stock brokers: Sharekhan vs. Zerodha.
When talking about the best stock broker in India, we cannot rule out Zerodha. It is the market leader in bargain stockbroking, is premised in Bengaluru, and accounts for more than 15% of total retail trading activity in the country. Mr. Nitin Kamath formed the leading brokerage firm in 2010 Kamath, and it now has a customer base of over 6 million.
You cannot open more than one individual demat account with one PAN card in Zerodha. However, if you already have a demat account with Zerodha and want to open a second joint demat account with the same PAN card, that is possible to do so.
You can download the account closure form the given link - Demat Account Closure Form and post it to the address mentioned in the form.
Zerodha as well as Groww, both allow investors to invest in Mutual funds. Groww does not charge any Account opening fees or Annual maintenance Charges but Zerodha charges Rs 200 for Account opening and Rs 300 for AMC. This makes Groww a cheaper and better option when it comes to investing in mutual funds.
You wish to know if Paytm Money is better that Zerodha or it's the other way round. Zerodha being a leading discount broker in India has been there for overe a decade now. While Paytm Money already established in mutual fund investment arena, but a fairly new entrant in stock broking industry. So, let's compare the features and discuss few details on each of them.
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Zerodha is the largest stockbroker in India which holds more than 19% of the total market share. It is good for beginners as the account and brokerage charges are low. It offers a great trading platform and has a simple-to-use UI. All these features make it a suitable choice for beginners as well as advanced traders and investors.