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.
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
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Individuals, HUFs, and partnership firms Annually ₹300 + 18% GST and Quateraly ₹75 + 18% GST
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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.