To open a demat account you will need one time charge for account opening and documentation. While opening the demat account these charges will be taken automatically by your broking firm. In most of the cases the banks and brokers prefer demat account opening for free. However, there are few cases where a nominal fee is charges for the stamp duty over which your agreement will be signed.

After you have opened your account you will need to carry on the transaction and thus you need to note the transaction charges. Transaction includes two operations; selling your shares or debit of shares and buying of shares or credit of shares. Now, as per the rules of SEBI (Securities and Exchange Board of India), a trader is not supposed to charge any fee for credit of shares. In many occasions newt traders are misled with the gimmick by brokers who say, “Buying of share is free of cost in our firm”. There is no need to get misled by such luring advertisements. The transaction charge solely depends on the transaction value. And the charge is set at 0.02% to 0.04% of the total transaction volume. Typically a transaction charge varies within a range of Rs. 12 to Rs. 25.

The next is the portfolio management charge, which is also termed as annual maintenance charge.  A trader will find reasonable number of brokers and they have different charges on portfolio management services. Generally the charge for portfolio management varies between Rs. 200 and Rs. 750.

The aforesaid charges are the mandatory charges for a trader. To open demat account and continue trading with it these charges are compulsory but the total amount looks quite nominal as opposed to the returns earned from the investment in share market. Apart from the mandatory charges there are few additional charges like service tax and education cess etc.

know the charges to open demat account. Read about the authentic charges to identify the hidden one quickly.