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Demat Account Charges and Fees

17 Feb 2021 0 COMMENT

A Demat account lets you trade, hold, and monitor shares and securities in a quick, cost-efficient manner without you needing to worry about fraud, forgery, or damage.

While the process of opening a Demat account is relatively straightforward, you’ll be required to pay fees for starting, maintaining, and transacting with the account.

 Below, we discuss the types of Demat account charges and fees with ICICI Direct -

Demat account charges and fees with ICICI Direct

Among several stockbrokers available in India, you can open your Demat and trading account with ICICIdirect. We are a full-time stockbroker and our charges are very nominal as compared to the market. Mentioned below are the charges and fees for opening a Demat account with ICICIdirect:

Types of Charges

Charges

Demat account opening charges

Nil

Demat account annual maintenance charges

Rs. 700 (waived for ICICIdirect customers for the first year)

 

Rs. 300 for ICICIdirect Neo customers from first year onwards

Demat account transaction charges

Buy – Nil for transactions done at ICICIdirect platform

Sell - 0.04% of the value of securities (Minimum Rs. 30 and maximum Rs. 25,000)

Rejection of failure of transfer instruction for delivery (TFID)

Rs. 30

Reconversion of mutual fund units

Rs.  25 per instruction

Dematerialization of share certificate

Rs.  50 for each request

Rematerialization of share certificate

Rs. 25 for every hundred securities subject to a maximum fee of Rs. 3 lakhs or a flat fee of Rs. 25 per certificate (whichever is higher)

Closure of Demat account

Nil

 

Additional Read: How Many Demat Accounts One can have?

Frequently Asked Questions (FAQs)

1. What is Demat account opening charges?

Several stockbrokers charge a fee for opening a Demat account for you. This charge is known as the Demat account opening charge. It could range between Rs. 700 to Rs. 900, depending upon the stockbroker. At ICICIdirect, there are no Demat account opening charges.

2. What is Demat AMC?

Demat AMC stands for the annual maintenance charges of a Demat account. You need to pay this charge to your stockbroker annually for the maintenance of your Demat account. It can range between Rs. 300 to Rs. 900.

3. Are there any charges for Demat account maintenance?

Yes, depository participants (DPs) can charge anywhere between Rs. 300 and 900 per annum for maintaining your Demat account.

4. How to reduce unnecessary Demat charges?

While you cannot avoid all Demat account charges, you can reduce them by finding the right stockbroker that has a competitive pricing strategy. You can also open a Basic Services Demat account with ICICIdirect, which comes with a holding limit and is suitable for new investors.

5. What’s the minimum balance required for a Demat account?

Since the Demat account stores shares and securities instead of money, you do not have to sustain a minimum balance.

6. What is a brokerage charge?

Whenever you make a transaction through your Demat account, i.e., whenever you buy or sell a security through your Demat account, you may have to pay a brokerage charge to your stockbroker. At ICICIdirect, there is no brokerage on buying the securities. However, for every sell transaction, a brokerage of 0.04% of the value of securities (Minimum Rs.  30 and maximum Rs.  25,000) is applicable.

7. What are the annual charges of a Demat account?

The annual charges of a Demat account include maintenance costs, transaction fees, custodian or safety charges, and miscellaneous expenses like stamp duty and GST.

8. How can I avoid Demat charges?

While all the charges cannot be avoided, you can reduce them by finding a brokerage firm with a competitive price strategy or opening a Basic Services Demat account that comes with a holding limit and is suited to new investors.

9. Which financial institution is charging the lowest on Demat account?

With ICICI Bank, you can open a Demat account for free. The annual maintenance charges of Rs. 700 can be waived for ICICIdirect customers for the first year of opening the account, and you’ll never have to pay every time you buy securities, only when you sell.

Disclaimer: The contents herein mentioned are solely for informational purpose and shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.