Are you thinking to start investment in the stock market? Are you confused which stockbroker you should choose? To answer all these questions, you need to go through all the Demat account charges, so that you can analyze and pick the one that suits all your needs.
But do you necessarily need a Demat account? The answer is yes! If you are looking for great investment benefits in the stock market, you need an account to save all your shares in the digital format.
Let us now have a look at what all charges you have to pay to avail the services of Demat account.
Demat Account Charges List
Ever since the digitalization of almost all the services across the globe, life has become more convenient. This is applicable to the storing of shares in the Demat account as well. The safety, accessibility, and usability have enhanced as well.
So, all these features come for a cost and those are the Demat account charges. Now these charges are levied by your depository participants and can vary from one broker to another.
But what all charges do you have to pay?
- Demat Account Opening Charges
- Demat Account AMC Charges
Now, let us have a quick look at all the details of the charges.
As discussed earlier, you need a demat account if you want to earn money from the stock market. Now a lot of stockbrokers give you a chance for easy demat account opening online so that you can enter the stock market world without risking your comfort.
There is some charge that you have to pay to your depository participant in order to open and then activate your demat account. These are the demat account opening charges.
Now, in the earlier times, the majority of the stockbrokers used to charge some amount to let the users avail there services. But lately, the trend of offering a free demat account has become quite prevalent.
And even when the demat account opening is not free, the charges levied are almost negligible. This has given rise to a lot of competition as well. Now, most individuals look for stockbrokers that are charging less and giving out the maximum benefits.
With Choice, you can easily open your Demat account at absolutely no cost. The procedure is also very simple and can be completed in a few steps. So here you can get started with the best services for free.
|Demat Account Opening Charges|
|Choice Opening Charges||₹0|
Once you have opened an account, you have to pay some maintenance charges. These are levied by the stockbrokers for the proper regulation and maintenance of your Demat accounts.
These charges can vary from one stockbroker to another according to their plans. Now the AMC or the account maintenance charges can range anywhere between ₹200- ₹3000 depending on the kind of plan your stockbroker is providing.
Some stockbrokers charge their clients on an annual basis but recently, there are many stockbrokers that have come up with monthly plans as well.
You can pick one depending on your convenience. An added advantage that has recently emerged in the AMC charges is that many stockbrokers do not charge any charges in the first year. This has in turn attracted a lot of clients to the desired stockbrokers.
Choice allows its clients to choose from a varied range of AMC plans. And in addition to this, you don’t have to pay any account maintenance charges in the first year. From second year onwards, you can pick from the following plans according to your own requirements and convenience.
- Yearly Plan- There is a yearly maintenance charge on the demat account in Choice. You have to pay ₹200+GST every year but from the second year onwards.
- Lifetime Plan- You can pay for the lifetime of using a Choice demat account if you pay ₹1500+GST in the first go.
- Refundable AMC plan- You also have an option to avail the lifetime annual maintenance plan when it comes to Choice. So you have to pay ₹3000+GST for this. This has an added advantage that your money will be refundable at the time you decide to discontinue your stock market journey with the broker.
So, as soon as you close your Demat account with Choice, you will get your AMC back.
|Choice AMC Charges|
These are some of the basic and mandatory demat account charges that an investor needs to pay to make the most out of it.
A lot of people enter the stock market and often wonder, is demat account free? The answer is yes, partially. It is totally dependent on the stockbroker that you choose.
You have to pay some opening and account maintenance charges when you are thinking of having a Demat account. But to make life easier, a lot of stockbrokers have discarded the account opening charges.
So, if you are looking to enter the stock market, open a demat account today!