Demat Account beginning - Information - demataccount
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Demat account opening is as uncomplicated as starting a savings account in a bank. A demat account is actually a dematerialized account that maintains dematerialized stocks, similar to your saving bank account retains your savings. An account has to be opened with a depository participant (DP). All of the banks and brokers that offer depository services are DPs, however all the DPs usually are not banks or even brokerages.
There's a specific amount which is said to be maintained in the bank savings account in order to continue availing the bank's services. However in the the case of demat account, there are primarily 4 charges that are levied on it. The 4 charges are Account beginning fee, yearly maintenance price, transaction fee and also custodian fee. All these costs are very different for every DP.
Account opening cost is supposed to be paid only during opening the demat account. Charging opening fee through the consumer is not compulsory and therefore the DP might or might not cost it. But, some stock trading brokers and lenders may levy a minimal cost for the stamp papers that would be essental to you for executing the agreement along with your DP.
Annual servicing fee yearly maintenance costs are also known as folio maintenance fee, that is generally charged upfront.
In online trading, trades are executed through an online trading platform given by the online broker. The agent, through their program offers the investor access to industry data, news, graphs as well as notifications.
Brokerage fee levied for the debiting and/or crediting of shares from and to the account each month. Some of the DPs levy a fixed volume as fee for each and every transaction, while other few compute their fee on the basis of the entire value of the transaction. Other than that, some of the DPs provide frequent trader accounts where the active traders are faced with lower fees as even compares to the charges levied by them on the non-frequent investors.
Custodian fee this is charged on a monthly basis and is determined on the basis of the number of shares your demat account retains. The charge is charged somewhere between INR0.5 to INR1 per share per month.
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5/16/2012 8:06:51 AM