Finance

What Are The Charges To Open A Demat Account

What Are The Charges To Open A Demat Account

For every serviceyou avail, you have to pay a certain cost. Same is the case with the demat account. Demat account not only simplifies your trading and investing experience in the stock market but also saves your time and efforts. It eliminates the tedious paperwork and makes your life comfortable. For all the comfort that it provides, there are certaindemat account openingcharges that you need to pay.

In this article, you will learn about the various charges that are applicable when you open a demat account.

What Are The Charges To Open A Demat Account

Demat Account Charges

  • Opening Charges

Demat account opening charges are generally low. The charges are nil to nominal. Few banks do not charge anything if you open a 3-in-1 account with them. The 3-in-1 account includes savings account, trading account and demat account.

  • Safety Charges

Demat account has erased all the worries of keeping the share certificates at a safe place. Since the demat account holds the shares in the electronic form, the depository participants and banks charge certain fees to hold them safe. The fee is charged on an annual basis to every demat account holder.

  • Annual Maintenance Charges

Annual maintenance charges are to be paid every year on a demat account. The brokers do not charge anything for a balance in the demat account up to Rs. 50,000. Depending on the number of transactions and demat account holding between Rs. 50,000 – Rs 2 lakhs, the demat account charges vary between Rs. 100 to Rs. 750. The annual charges can go above Rs. 2,000 when the value of transactions is more than Rs. 2 lakhs. Annual maintenance charges can be levied quarterly, half yearly or yearly.

  • Transaction Charges

The transaction charges vary from broker to broker. Some depository participants levy charges on the basis of the number of transactions, while some levy charges for the entire month on a flat rate. The discount brokerages levy charge of approximately Rs. 1.50 for every share traded.

The above mentioned are a few demat account charges that every individual has to pay for opening or operating a demat account. There are other charges like dematerialisation of shares costing around Rs. 5 for every certificate. The depository participants also levy charges on credit trading and mailing of non-periodic statements. Along with these charges, Goods and Services Tax (GST) is also applicable at 18%.

Since you are now aware of the various types of charges, you can go ahead and consider to open a demat account with Kotak Securities.

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John Paul

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