To trade online you need a demat and trading account. To open a demat account you have to approach the depository participant (DP). The depository participants are banks, brokers and financial institutions. You can open the demat account with the DP of your choice.
You should know about the charges levied by the DP before you choose one. The different DP’s offer different features and the charges vary. The depositories do not charge the investors but charge the DP. The DPs are allowed to have their own fee structure for the clients. The tradebulls demat account charges are as follows :
Account opening fees
When you open a demat account this fee is charged. Some of the DPs offer free account opening.
Annual maintenance fees
This fee is charged for maintaining the account. The SEBI rule is that for accounts with the value of shares below Rs. 50,000 will not be charged any annual maintenance fees. For value of the shares in the account between RS. 50,000 and 2 lakh the annual maintenance fee will be Rs.100 per annum. If the value of the shares in the account is above 2 lakh then the charges have to be paid as levied by the DP.
This fee has to be paid for safekeeping of the shares in the demat account. It is charged either monthly or yearly.
This fee is charged for every transaction in your account. It is charged for crediting or debiting shares in your demat account. Some charge flat fees per transaction. While some charge fees depending on the value of the transaction with a minimum charge. Some of the DPs charge for debiting of shares only. While some charge fee even if the instruction to buy or sell shares is rejected. This charge varies per DP.
This fee is charged by the DP for converting your shares into electronic form. Usually they charge flat fee per request.
The demat account charges are paid through the DP. The custody charges are 0.01% p.a. of the average market value of the shares held in the account. Settlement charges are 0.02% of the market value of the shares being transferred. This applies when you buy or sell shares.
The two depositories of India are CDSL and NSDL and you can find the list of depository participants at the two websites. To avail the services of the depositories you have to open a demat account with a registered DP.