Investors who want to keep their shares and securities in an electronic format should open a demat account as the first step. This frees them from the burden of holding physical share certificates and streamlines the process of buying and selling in the stock market. Although brokers now streamline the opening of a demat account, one must consider the various associated charges. Among them, the prevalent one is the Annual Maintenance Charge (AMC).
What is a Demat Account AMC?
Depository participants (DPs) and/or brokers charge an annual fee, known as the demat account AMC or Annual Maintenance Charge, for maintaining a demat account. Brokers charge the AMC every year, and the exact amount varies from broker to broker as well as according to the type of account opening and the services extended. This amount even gets deducted when no transactions take place during that whole year.
Differentiated – Demat Account AMC Rates
1. Bajaj Broking
Bajaj Broking offers this demat account service through its online investment platform. The demat account AMC costs ₹365 for the whole year. Investors find it simple to open an online account, and they can choose from investment alternatives such as stocks, mutual funds, and bonds. Specific plans or promotional periods may provide AMC waivers or discounts.
2. Zerodha
Zerodha serves as a discount broker with demat and trading services. The demat account AMC with Zerodha amounts to ₹300 yearly, which brokers charge quarterly at ₹75 per quarter. Zerodha does not charge for offline demat account openings; however, it also does not impose a fee for opening a demat account via online mediums.
3. Upstox
Like all other discount broker platforms, Upstox offers its demat account with an AMC of ₹300 per annum. Charges for opening an account change depending on the offers in the campaigns and the mode of account creation.
4. Angel One
Angel One, as a full-service broker, offers demat accounts with various AMC schemes. The first-year AMC often comes free as part of promotional campaigns. In the second year, the AMC may amount to ₹240 per annum. Specific offers may vary according to account type.
5. ICICI Direct
ICICI Direct, as part of ICICI Bank, provides demat services through a 3-in-1 account. The AMC for its demat account ranges from ₹300 to ₹700 per annum, depending on the account type and holding value. Some premium accounts or customers with higher holdings may find different AMC structures available.
6. HDFC Securities
HDFC Securities, another full-service broker associated with HDFC Bank, charges an AMC of ₹750 per annum for its demat account. Some account holders under certain plans or promotional schemes might have different pricing.
7. Groww
New in the discount broker world, Groww offers a zero AMC demat account according to its current pricing model; it charges no annual maintenance fees. This condition may apply to basic account holders and could vary over time.
9. 5 Paisa
5Paisa standardly provides a demat account with an AMC of ₹300 per annum. Along with this, it has subscription-based models that may waive the AMC in consideration of an annual or monthly platform usage fee.
10. Sharekhan
Sharekhan charges an AMC of ₹400 to ₹750 yearly, depending on the type of demat account. Both retail accounts and trading-plus accounts are subject to policies for the annual AMC charge and may change from time to time.
11. Motilal Oswal
Motilal Oswal opens demat accounts in which the AMC for the first year largely comes free through promotional offers. The AMC from the second year onward is likely to range between ₹400 and ₹999 per annum based on the variant of the account.
Conclusion
The demat account AMC varies across different brokers and is influenced by the services provided, account type, and the broker’s business model. A detailed comparison of their charges enables individuals to choose a demat account that suits their investment and transaction patterns.