sanjana suri en demat account charges, Demat, Finance / Banking 7/12/2017 · 1 min de lectura · ~100

Demat Account and its Charges

Trading has be a proven method to accumulate wealth and eventually financial security. In order to venture into the world of trading as a source to secure yourself for the future, you need to take some essential steps.

One of the main steps in securing your financial future is to open a demat account. If you are a beginner in the trading industry, then there are various basics of demat account that you need to know. This is your comprehensive guide to a demat account.

Demat Account and its Charges

What is a demat account?

A demat account is one which holds your investments and securities in one place. All your investments decisions that include, the transaction of funds, which includes buying and selling of funds. For an investor, it is vital to open a demat account.

Are there any Demat account charges?

In the process of opening a demat account, there are bunch of charges that will be levied upon you either initially or on an annual basis. Here are some of the demat account charges:

Account opening charges – When you open your account, the broker will levy certain charges on your demat account. The charges will defer from bank to bank. Therefore, it is difficult to tell whether the charges are cheap or not.

Annual Maintenance Fee – The broker will charge you a certain fee, which is variable. This fee is levied in return for efficient maintenance of your account. This is deducted on an annual basis. The fees can vary between 300 to 800 rupees. However, keep in mind that the fee is not directly proportional to the kind of service delivered.

Custodian Fee – Since the demat account is responsible for holding your securities in a safe place, there is a certain fee that is rendered against this service. This is known as the custodian fee. It is usually charged yearly and is based on the number of assets that you hold with the account.

Transaction Fee – Depending on the value of trade and the number of stocks involved, there will be a fee charged on the transaction. Your fee depends on the scheme you have availed and the broker you choose.

Dematerialised Fee – In case you hold onto securities in the physical form, then a fee is charged by the broker. This is known as your dematerialised fee.