Is Your Demat Account Free? Well, before we answer that, let’s understand some of the basic aspects of a Demat account.
A demat account stores one’s equity stocks, bonds, commodities, mutual funds, government securities, etc. in electronic form. It helps in increasing security and surety of transactions and makes the whole process of clearing transactions faster.
If you are new to the stock market and looking to open a free demat account, then, it is very important to open your account with the stockbroker who not only gives good service but also offers you a good deal in terms of costs. There are many brokers in Indian market that offer the option of opening a free demat account along with a free trading account.
Although they might offer you a demat account free, it does not mean that there are absolutely no costs related to it. Most of the brokers charge an annual maintenance fee or AMC for the account. Also, there are different brokerages charged by them on different kinds of trades. It is essential to look at all the costs and services provided by any broker before making any decision.
When we make any transactions, there are some taxes that need to be paid which are common for any brokerage firm (trading platform) we are using. For example, Securities Transaction tax and commodities transaction tax. Also, GST is 18% of (brokerage + taxes). Therefore, GST is more on those accounts where brokerages are more.
This is one of the most reputed brokerage firms in India. This brokerage firm not only offers a free demat account opening option but also a flat fee of ₹10 on any transaction in equity, futures & options and currency segments irrespective of the amount invested.
There are four different types of accounts that can be opened with Angel Broking. The annual maintenance charges are different for every account. The different costs involved with every account is as follows:
Angel Classic account – This account is good for beginners. Initially, an investor has to deposit a sum of ₹10000 which will be used by him/her for trading. Brokerage costs for different kinds of trading:
online equity trading – 0.32%
offline equity trading – 0.40%
online equity intraday trade/futures – 0.032%
offline equity intraday trade/futures – 0.04%
Angel Preferred account – Initial minimum amount to be invested – ₹25000. Its Brokerage costs are
online equity trading – 0.224%
offline equity trading – 0.28%
Angel Premier account – Initial amount to be invested – ₹50000 to ₹99999. Its Brokerage costs are:
Online equity delivery – 0.176%
Intraday trading – 0.0176%
Angel Elite account – The customers of this account pay the least brokerage as their initial amount to be invested is highest i.e. ₹1 lakh and above.
ICICI Direct is a retail trading and investment service from ICICI Securities, the largest retail stock broker firm in India (in terms of the active client base). They offer investment products such as Online Equity Trading, Derivatives Trading, Mutual Fund & IPO, Fixed Deposit, Bond, NCD, wealth products, etc.
They give you an option of free demat account with just a ₹100 charge for Agreement Stamp Paper. The annual maintenance charges for the demat account is ₹500. For the first year, they do not charge any annual maintenance charges for the 3-in-1 account.
They offer 3-in-1 accounts which integrate banking, broking and demat accounts. However, ICICIDirect doesn’t offer commodity trading.
They offer two types of brokerage plans to their customers:
I-Secure Plan (Flat brokerage Plan)
Under this plan, a flat brokerage is offered in percentage irrespective of turnover value. This plan is suitable for traders/investors looking at secured and fixed brokerage. For equity delivery, their brokerage is 0.55%.
The minimum brokerage for transactions up to ₹6364 on stocks quoting more than ₹10 is ₹35 per trade or 2.5% of the trade value whichever is lower. Brokerage rates as mentioned above will be charged for trade value exceeding ₹6364.
I-Saver Plan (Variable brokerage plan)
Under this plan, the brokerage is offered based on the trading volume i.e. high brokerage for low volume and low brokerage for high volume trades. This plan is suitable for traders/investors who trade in high volumes so that they can benefit from the low brokerage. Their brokerage charges for equity delivery vary like mentioned in the table below.
Similarly, their brokerage charges for intraday square off also vary with the turnover.
Sharekhan is one of the largest brokerage firms in India. It offers its services to all kinds of customers including individual investors and traders, corporate, institutional and NRI’s. They also give free demat account opening options to their customers. Sharekhan offers trade execution facilities for equity cash and derivatives segments on BSE and NSE, commodities trading facilities on MCX and NCDEX.
Sharekhan also offers depository services (demat account) and option to invest in mutual funds and IPOs. Services offered by Sharekhan also include trading in commodities and investment in IPO’s, Mutual Funds, Insurance, Bonds and NCD’s.
They have different plans for their customers based on the amounts they want to invest.
For Intraday Trading – 0.1% on the buy side and 0.1% on the sell side or 5 paise per share (whichever is higher)
For Delivery Based Trades – 0.5% or 10 paise per share or ₹16 per scrip whichever is higher.
F&O Trades: 0.1% on the first leg and 0.02% on the second leg if squared off on the same day and 0.1% if squared off on any other day
Options Trades: ₹100 per contract or 2.5% on the premium (whichever is higher)
Currency Future: 0.1%
Currency Options: ₹30 per lot or 2.5% on premium (whichever is higher)
For a callback for a demat account, just click here.
More details about different services and charges of all the brokerage firms can be found out either on their websites or simply by giving a call to their offices. They may offer discounts to their customers. Therefore, it is recommended to talk to them about their services and charges before making a decision to open a demat and trading account with them.
In case you are looking to open a free demat account, just fill in some basic details below and a callback will be arranged for you: