When opening a Demat account with the stockbroker, the foremost thing is to look for the hidden charges imposed by the broker. This becomes even more important with a new broker like Paytm Money. So, here we are with the complete information on DP charges in Paytm Money.
Paytm Money brings in a completely digital trading platform for its customers who want to trade online in the stock market.
Offering a seamless trade experience here is the depository participant charges you need to pay for every sell transaction done from your Paytm Money Demat account.
What is DP Charges in Paytm Money?
These are the charges charged by depositories (NSDL and CDSL) and are charged only on selling i.e. when the shares are debited from the Demat account.
Thus it can be said that these are flat transaction fee charges while selling stocks from your Demat account.
It is pertinent to mention that DP charges are applied per scrip and are independent of the volume of stocks.
As already discussed that the DP charges are charged per scrip irrespective of the number of scrips and therefore it becomes important to understand how it is being calculated.
To get a better understanding let’s consider different scenarios:
Raman bought 100 shares of company X and 200 shares of company Y . After gaining good profit from these two shares he decided to sell these shares.
CASE 1. If he sells 50 shares of company X in the morning and 20 in the afternoon, then the total DP Charges applied per scrip will be Rs.10+18%GST i.e ₹11.8
CASE 2. If he sells 20 shares of company X and 50 shares of company Y, then the total DP charges applied will be Rs.10+Rs.10=Rs.20 + 18% GST.
This is because, in the first case, the shares of one scrip were sold while in the second case Raman sold the shares of two different scrips, i.e. X and Y, thus the DP charges are imposed two times.
CASE 3. If he sells 20 shares of company Y in the morning and 30 shares of the same company on the next day, then the charge applied will be; Rs.10+Rs.10=Rs.20+18%GST.
Well! you are not alone.
Although the broker charged the DP charges per scrip it is charged per day. Thus, if the shares of the same scrip are sold in fragments in two or more different days then the DP charges are charged every time the shares are debited from the Demat account.
So here one can now sum up that the DP charges in Paytm Money are charged per scrip per day and hence you need to pay a minimal fee of ₹10 when you debit shares from the Demat account.
Since these charges are charged on the Demat account and hence no fees are levied when doing the intraday trading with Paytm Money.
So, when doing trading with the broker make sure to consider these charges along with Paytm money brokerage charges to get the exact evaluation of the profit and loss in trade.
Get into the trade, by opening a Demat account for FREE!