DP Charges in Groww

DP Charges

Investing with Groww? Do you know what charges you pay apart from brokerage and margin? Well, we doubt it! Your Demat Account charges also include something called the DP charges. So today we bring an article for all Groww traders about the DP charges in Groww.

You need to note that these charges are levied on your delivery trades post your Groww account opening is completed.

But first, don’t you wanna know what these DP charges are?

What is DP charges in Groww?

DP charges also called debit transaction charges are imposed on the selling of shares or simply on the debit of shares held in your demat account for more than one day.  Now it would be interesting to know how much Groww charges in terms of DP charges?

The DP charges in Groww are 13.5+ GST per scrip per day.

 

These charges are only imposed on the delivery trades.

Groww DP Charges for Intraday

Till yet we talked about delivery trading, but what about the DP charges for intraday trading.

Well! if you are a regular trader, you would be able to figure out the answer. For the newbies, it is essential to know that there are no DP charges for intraday trading in Groww.

Wondering Why?

Since the delivery of shares takes place in T+2 or T+1 days and DP charges are imposed on the debit of shares. Thus, in intraday trading, the shares are not transferred to your account and hence no DP charges are imposed on you for intraday trading in stocks.

 

 


How to Calculate DP Charges in Groww?

As already discussed, this fee is charged per scrip per day. To get a clear understanding of the same let’s just consider one example.

Mr. John is an active investor associated with Groww stockbroker. So let’s say he bought around 100 shares of Tata Power today. 

Now in the first scenario, he sold all of his shares after making a good profit after two months. 

Here he was charged with ₹13.5+GST i.e. ₹15.93 for his sale transaction just once. 

Let us suppose, in the second scenario he sold these shares in fragments, such as, 25 shares (after a week), 50 shares (next month), 10 shares (again after 3 months) and finally remaining 15 shares (after a year).

In this case, he paid DP charges each time he made a sell transaction, no matter the number of shares. Which means, 

For the sell transaction, 25 shares (after a week) the DP charges= ₹13.5
For 50 shares (next month)= ₹13.5
For 10 shares (after 3 months)= ₹13.5
And finally for 15 shares (after a year)= ₹13.5

As you can see he had to pay 4 times as per the scrips. 

Next comes the scenario where he sold the shares in fragments but in a single day. So here let’s suppose he sold 50 shares in the morning half of the trading session and the rest 50 shares later on the same day. 

Here did he pay DP charges twice? 

No!

The broker imposes the DP charges per scrip per day. So, irrespective of how many times you debit shares of particular scrip in a single day, you have to pay the DP charges only once. 

Thus, John although made two transactions in the day, still paid the charges once i.e. ₹13.5+GST


How to Avoid DP Charges in Groww?

After understanding the concept of DP charges in Groww and how it is charged, let’s now look at the ways where you can avoid these charges.

DP charges are the fees that are only imposed on the sell transaction, i.e. when you debit your holdings from the demat account.

So, by trading in index, commodity, or currency where the trade is settled in cash and no credit or debit of shares takes place, in such trades no DP charges are imposed on the trader.

In short, you can avoid DP charges by trading in:

  • Future and Option index
  • Commodity Trading
  • Currency Trading
  • Intraday Trading

Conclusion

So, if you are planning to invest in stocks, then apart from the Groww brokerage charges, it is good to consider the DP fees charged by the broker. This helps you in considering your profit and loss margin before investing. 

Get into the trade with the stockbroker by considering all the aspects including the DP charges to avoid any confusion and hassle later.


Interested in the stock market investment? Get started now by opening a Demat account for FREE!

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