InvestorQ : Are there costs to demat account and the trading account? What are the costs to consider when evaluating demat accounts?
Juvina Maggie made post

Are there costs to demat account and the trading account? What are the costs to consider when evaluating demat accounts?

Answer
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sara Kunju answered.
2 years ago


Every demat account involves some cost. There is the annual maintenance charge (AMC) that the DP will charge you, which could range from Rs.700 to Rs.1000 per year. Additionally, there are stock movement charges for every debit from the Demat account. So, even if your demat account is idle, you still need to pay the AMC which can add up to quite a bit if you have multiple demat accounts. That is why you must be cautious about how many demat accounts you maintain because it entails unnecessary cost.
A single demat account can be linked to multiple trading accounts just as a single bank account can also be mapped to multiple trading accounts. Normally, for the sake of simplicity brokers insist on having the broking account and the demat account with the same broker. This will ensure that the process of delivery in and delivery out happens smoothly. So, each time you give your DIS for debiting your demat account, you don’t need to wait in panic wondering what will happen and whether your DIS will be delivered on time. More so, in case of online trading accounts, the debit to your demat account is seamless and hence the risk of short delivery and auction rarely arises.