Is DP Charge Applicable for Intraday Trading?

Well, here we are to help you out with one of the most pressing queries traders generally have. Although, there are many charges applicable on your trades but is DP Charge applicable for intraday trading or not, is something people worry about too.

Well, the simple answer to that question is No, it is not.

Happy that we answered it already?

But don’t you think you shall go beyond the yes and no part and actually understand why is it so? Does not it make sense for you to get your fundamentals straight?

If you agree, let’s try and understand the logic behind this.

What are DP Charges?

Well, if you do not understand the concept of DP charges itself then let’s just start from there quickly. DP charges as the name suggests, are charged by the DPs i.e. Depository participants.

Now, assuming that you understand that DPs are in the industry to manage your demat accounts, then you’d be charging for services that involve a demat account in the first place. Right?

So, when you take the delivery of your stock holdings or sell those off from your demat account, during such instances primarily, your demat account comes into the picture. That is, this is the point when the DPs have actually performed some service to you and can realistically expect a service charge a.k.a DP charge from you.

This is what a DP charge is.

DP Charges for Intraday Trading

With the logic explained in the above section, Intraday trading, as a concept does not involve demat account in its usage. This is because, during intraday trading, your stocks are bought & sold or vice versa in the same trading session.

Simply said, no transfer of shares to or from demat account happens at all in this format of trading.

And when that does not happen, on what basis the DPs would charge DP charges for intraday trading. Right?

Thus, in other words, to answer the original query “Is DP Charge Applicable for Intraday Trading?”, the answer is NO. DP charges are not applicable for intraday trading because the demat doesn't get involved in the transaction as the whole process is carried out in a single day session.

If there were DP charges levied on Intraday trading, traders would have been wondering whether Intraday trading is profitable or not? But that’s a topic for some other day’s discussion.

Are DP Charges Same for All Brokers?

DP charges are levied only on trades when shares are transferred to the demat account or when shares are transferred out of your demat to another account.

Although, it may seem that all stockbrokers must be asking for the same amount as the DP charge, but that is not the case. Different stockbrokers charge different DP charges from their clients.

There would be brokers that charge INR 10 + GST per scrip per day while there are a few other stockbrokers that charge INR 25 + GST as well. That is a difference of 250% and is huge!

Therefore, different stockbrokers charge separate levels of DP charges and there is no specific rule or regulation levied by SEBI in this kind of variation.

If you would like to know more about DP charges or any other charges related to your trading or to your demat account, feel free to leave your details and we will reach out to you.