Since you are specifically looking for demat account charges in India, we have safely assumed that you already understand what is a demat account, its usage, advantages disadvantages etc. This article will be discussing different types of demat account charges in India, what are the charges generally levied by different types of stock brokers and currently running offers and deals through 'A Digital Blogger' as well.
So, let's just dive in!
Types of Demat Account Charges:
Apart from brokerage charges, there are few types of charges that are generally levied by the stockbrokers:
- Demat Account Opening Charges
- Annual Maintenance Charges
- Trading Account Opening Charges
- Transaction charges
- Trading platform usage charges
- Remat charges
- Credit Charges
There might be few other charges that are not direct enough. It is advisable that you talk at length about different charges and how are those charges levied while you are opening the demat account with the stockbroker. Having said that, a major chunk of monetary value lies in the account opening, maintenance and transaction charges most of the times. More..
Just before we discuss different charges levied by different stock brokers, we would just like to give a summary of different types of stockbrokers:
- Bank Stock Brokers - are basically trading arms of the banks that allow clients to trade using a 3 in 1 demat account.
- Full-Service StockBrokers - are experts in stock trading with huge offline presence and provision of regular research reports and intraday tips.
- Discount StockBrokers - are no frill stock brokers and just provide trading platforms for users to trade at much-discounted brokerage prices.
So we can see that there are some stockbrokers that can open a demat account for free while there are few that ask for a hefty amount upfront. There could be multiple reasons for that:
- High tech trading platforms
- Wide offline coverage across the country
- Expertise in research reports and market tips
- Quick turnaround based customer service