Charges for Opening a Demat Account
Opening a Demat account (short for Dematerialized account) is a crucial step for investing in securities such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs) in electronic form in India. The process involves a Depository Participant (DP), such as a bank, brokerage firm, or financial institution, registered with depositories like the National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL), under the regulation of the Securities and Exchange Board of India (SEBI). The charges for opening and maintaining a Demat account vary across DPs and depend on factors like the type of account, broker type (full-service or discount), and additional services offered. Below is a detailed guide on the charges associated with opening a Demat account, ongoing fees, and ways to minimize costs.
Types of Charges for a Demat Account
Opening and maintaining a Demat account involves several types of charges, which can be categorized as follows:
- Account Opening Charges
A one-time fee charged by the DP when opening a Demat account.
- Range: ₹0 to ₹900, depending on the DP.
- Details: Many discount brokers (e.g., Zerodha, Upstox, Groww) and some full-service brokers (e.g., Angel One, ICICI Direct, Bajaj Broking) offer free Demat account opening. Traditional banks or full-service brokers may charge ₹200–₹900. For example, SBI Securities charges ₹850, while HDFC Bank charges ₹200–₹500 for some account types.
- Additional Costs: Some DPs may charge for stamp duty, GST, or other statutory levies, which are nominal but vary by provider.
[](https://www.icicidirect.com/ilearn/stocks/articles/everything-you-need-to-know-about-demat-account-fees-and-charges)[](https://diy.sbisecurities.in/open-demat-account/)[](https://www.hdfcbank.com/personal/invest/demat/open-demat-account)
[](https://www.angelone.in/knowledge-center/demat-account/demat-account-charges)
- Annual Maintenance Charges (AMC)
A recurring fee charged annually or quarterly to maintain the Demat account.
- Range: ₹0 to ₹900 per year.
- Details:
- Standard Accounts: Most DPs charge ₹300–₹900 annually. For example, Zerodha charges ₹300 + GST per year for non-Basic Services Demat Accounts (BSDA), ICICI Direct charges ₹700 (waived for the first year), and Angel One charges ₹20/month + taxes from the second year.
- Basic Services Demat Account (BSDA): SEBI introduced BSDA for small investors with holdings up to ₹4 lakh, where AMC is waived or significantly reduced (e.g., ₹0 if holdings are below ₹4 lakh, ₹100/year for holdings between ₹4–10 lakh).
- Waivers: Many DPs (e.g., Upstox, IIFL, HDFC Securities, SBI Securities) waive AMC for the first year.
[](https://www.icicidirect.com/ilearn/stocks/articles/everything-you-need-to-know-about-demat-account-fees-and-charges)[](https://zerodha.com/open-account/)[](https://economictimes.indiatimes.com/wealth/invest/demat-account-charges-zerodha-angelone-icici-direct-sbi-securities-hdfc-securities-groww/articleshow/101334604.cms?from=mdr)
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- Payment Terms: AMC is typically charged quarterly or annually, debited directly from the linked bank account.
- Transaction Charges
Fees charged for each credit or debit transaction in the Demat account.
- Range: ₹10–₹50 per transaction or 0.03–0.05% of the transaction value, depending on the DP.
- Details:
- Buy Transactions: Often free (e.g., ICICI Direct charges ₹0 for buys).
- Sell Transactions: Charged per transaction, e.g., ICICI Direct charges 0.04% (minimum ₹30, maximum ₹25,000), Zerodha charges ₹15.34 per scrip (₹3.5 CDSL + ₹9.5 Zerodha + ₹2.34 GST), and Kotak Securities charges ₹10–₹25 per trade.
- Discounts: Zerodha offers a ₹0.25 discount per transaction for female account holders (first holder) and for mutual fund/bond transactions.
[](https://economictimes.indiatimes.com/wealth/invest/demat-account-charges-zerodha-angelone-icici-direct-sbi-securities-hdfc-securities-groww/articleshow/101334604.cms?from=mdr)
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[](https://zerodha.com/charges/)
- Purpose: Covers services provided by the DP and depository for processing transactions.
- Custodian/Safety Charges
Fees for the safekeeping of securities in the Demat account.
- Range: ₹0.5–₹1 per ISIN (International Securities Identification Number) per month.
- Details: Charged by some DPs (e.g., HDFC Bank charges ₹500–₹1000 annually) for securely holding electronic securities. Not all DPs levy this separately, as it may be included in AMC.
[](https://www.hdfcbank.com/personal/resources/learning-centre/invest/know-how-to-open-demat-account-online)
- Other Charges
Additional fees for specific services or actions.
- Dematerialization/Rematerialization: Converting physical shares to electronic form (dematerialization) or vice versa (rematerialization) incurs fees, typically ₹10–₹50 per certificate.
- SMS Alerts: Optional fees for trade confirmation alerts, ranging from ₹5–₹15 per SMS.
- Other Fees: Charges for courier, stamp duty, non-periodic statements, or specific actions like off-market transfers, buybacks, or pledges (e.g., Zerodha charges ₹20 + GST for OFS/buyback orders).
- Statutory Levies: SEBI turnover charges (₹10 per crore + GST), Securities Transaction Tax (STT), and GST are applicable on transactions and fees.
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- Brokerage Charges (for Trading):
While not directly a Demat account charge, brokerage fees apply when trading through a linked trading account.
- Range: ₹0 (zero brokerage) to 0.5% of transaction value, or flat fees like ₹10–₹20 per order.
- Details:
- Discount Brokers: Upstox, Groww, and 5paisa charge flat ₹20 per order; Zerodha charges ₹20 for intraday/F&O; Kotak Securities charges ₹10 for intraday.
- Full-Service Brokers: ICICI Direct, HDFC Securities, and SBI Securities may charge 0.1–0.5% per trade, though some offer flat rates (e.g., ₹20 for derivatives at HDFC).
- Zero Brokerage: Groww and Upstox offer zero brokerage for equity delivery.
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Comparison of Charges Across Popular DPs
The charges vary significantly among DPs, with discount brokers typically offering lower fees compared to full-service brokers or banks. Below is a comparison of charges for some popular DPs (as of July 28, 2025):
| Depository Participant | Account Opening Charges | AMC (Annual) | Transaction Charges | Brokerage Charges |
|---|---|---|---|---|
| Zerodha | ₹200 (online) | ₹300 + GST (non-BSDA); ₹0 for BSDA (holdings < ₹4 lakh) | ₹15.34 per scrip (sell) | ₹20/order (intraday/F&O); ₹0 for equity delivery |
| Upstox | ₹0 | ₹0 (first year); ₹150 + GST thereafter | ₹20 or 0.05% (whichever is lower) per order | ₹20/order (intraday/F&O); ₹0 for equity delivery |
| Groww | ₹0 | ₹0 (first year); ₹300–₹400 thereafter | ₹20 or 0.05% per order | ₹20 or 0.05% per order; ₹0 for equity delivery |
| Angel One | ₹0 | ₹0 (first year); ₹20/month + taxes thereafter | ₹20 or 0.05% per order | ₹20/order (intraday/F&O); ₹0 for equity delivery |
| ICICI Direct | ₹0 | ₹700 (waived first year); ₹300 for BSDA | ₹0 (buy); 0.04% (sell, min ₹30, max ₹25,000) | 0.1–0.5% or ₹20/order (Prime plan) |
| HDFC Securities | ₹200–₹500 | ₹250–₹750 (waived first year) | ₹25–₹50 per transaction | ₹20/order (derivatives); 0.1–0.5% for equity |
| SBI Securities | ₹850 | ₹750 (₹500 for e-statement) | ₹20 or 0.05% per order | ₹20/order (flat) |
| Kotak Securities | ₹0 (3-in-1 account) | ₹300–₹500 | ₹10–₹25 per trade | ₹10/trade (intraday); 0.1–0.5% for equity |
| Bajaj Broking | ₹0 (Freedom pack) | ₹431 (from second year) | ₹10–₹25 per trade | ₹10/order (minimum) |
Ways to Reduce Demat Account Charges
Several strategies can help minimize the costs associated with a Demat account:
- Choose a Basic Services Demat Account (BSDA): Ideal for small investors with holdings up to ₹4 lakh, BSDA accounts waive AMC or charge minimal fees (e.g., ₹0 for holdings < ₹4 lakh, ₹100 for ₹4–10 lakh).
- Opt for Discount Brokers: Brokers like Upstox, Groww, Zerodha, and Bajaj Broking offer free account opening and low/zero AMC for the first year, along with flat transaction fees (₹10–₹20 per order).
- Look for Waivers: Many DPs (e.g., IIFL, HDFC Securities, ICICI Direct) waive AMC for the first year or offer free account opening.
- Minimize Transactions: Reduce transaction charges by limiting frequent buying/selling, as fees are charged per transaction.
- Compare DPs: Evaluate charges, services, and customer reviews before choosing a DP to ensure cost-effectiveness and reliability.
- Use 3-in-1 Accounts: Banks like ICICI, HDFC, and Kotak offer 3-in-1 accounts (savings, trading, Demat) with free opening and waived AMC for the first year, streamlining costs.
[](https://www.indiainfoline.com/knowledge-center/demat-account/things-you-must-know-demat-charges)[](https://www.hdfcbank.com/personal/resources/learning-centre/invest/everything-about-demat-account-charges-and-fees)
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Additional Considerations
- Broker Type: Discount brokers (e.g., Zerodha, Groww) are cheaper but offer limited advisory services, while full-service brokers (e.g., ICICI Direct, HDFC Securities) charge higher fees but provide research and advisory support.
- Hidden Costs: Be aware of additional charges like stamp duty, GST, or fees for special services (e.g., dematerialization, pledges). Always check the DP’s fee structure.
- Account Type: Charges may vary for regular, NRI, minor, or BSDA accounts. For example, NRIs may face additional costs for Portfolio Investment Scheme (PIS) permissions.
- Trading Account Linkage: Most Demat accounts are linked with trading accounts, and brokerage fees impact overall costs. Choose a DP with competitive brokerage rates.
- Transparency: Reputable DPs like Bajaj Broking and IIFL emphasize transparent fee structures, so review the fee schedule on the DP’s website before opening an account.
[](https://www.angelone.in/knowledge-center/demat-account/demat-account-charges)
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[](https://www.icicibank.com/personal-banking/investments/three-in-one-account)
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Tips for Cost-Effective Demat Account Opening
- Choose Discount Brokers: Opt for brokers like Upstox, Groww, or Zerodha for free opening and low AMC.
- Go Online: Online account opening is often free or cheaper and faster (1–2 days) compared to offline (3–7 days).
- Check for Promotions: Look for DPs offering first-year AMC waivers or zero brokerage for equity delivery (e.g., Groww, Angel One).
- Evaluate BSDA Eligibility: If your holdings are below ₹4 lakh, opt for a BSDA to avoid AMC.
- Read Fine Print: Understand all charges (e.g., transaction fees, statutory levies) to avoid surprises.
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[](https://www.precize.in/blogs/what-is-demat-account-and-their-charges)
Conclusion
The charges for opening a Demat account in India range from ₹0 to ₹900, with many discount brokers like Upstox, Groww, Angel One, and Bajaj Broking offering free account opening. Annual Maintenance Charges (AMC) typically range from ₹0 (for BSDA or first-year waivers) to ₹900, and transaction charges vary from ₹10–₹50 per trade or 0.03–0.05% of the transaction value. Additional fees like custodian charges, dematerialization fees, and statutory levies may apply. By choosing a discount broker, opting for a BSDA, or leveraging first-year waivers, investors can minimize costs. Always compare DPs, review their fee structures, and ensure transparency to select a cost-effective Demat account that suits your investment needs.