Opening a Demat account is as simple as opening a savings account in the bank. Basically a Demat account is a dematerialized account which carries different dematerialized stock, just same as your saving account do with your savings. If you are thinking that how to open a Demat account, then, first of all, you need a depository participant to open a Demat account. All the financial institutions that provide depository services are popularly known as DPs. But it is not necessary that all the DPs are bank and brokers. You must clear things about it. You may look at online trading demat account as well.
Nowadays, online Demat account opening services are in trend and also offers effective results. You must look at them. If you want to continue with the bank services then there are a few amounts, or charges that you have to pay. But when we talk about the Demat account there are 4 charges that you have to pay for getting the effective services. The four charges include an account opening fee, annual maintenance charges, custodian fee, and transaction fee as well. But the charges Varies for every DP. Let's discuss each charge in detail Charges Account opening fee: You have to pay this charge only at the time of the opening of a Demat account. It is not compulsory so it is possible that DP may ask for it and not. It is true that a few stock trading brokers and banks charge a nominal fee for the same. You can ask about the same to your DP. Annual maintenance fee: There is no doubt that each service asks for maintenance charges and the same is too applicable for the Demat account. In the Demat account, annual maintenance charges are also known as a folio maintenance fee, and you have to generally pay the same in advance. Transaction fee : One more charge, it is also a normal one. Basically the transaction charge is levied for debiting or crediting shares from the account every month. There are a few DPs who ask for a particular charge for each and every transaction that you made. Those who are active traders may have to pay less as compared to others. It also depends on the type of transaction that is being made. Custodian fee : It charges on a monthly basis and will be evaluated on the basis of shares that your Demat account carries. The charges will be around INR0.5 to INR1 per share per month. DPs do not for a custodian fee for in case of ISIN as in the same one time charge must be paid by the companies.
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