Finding yourself a low brokerage demat account isn’t hard in India. There are many discount brokers in India that may be just a perfect fit for you.
When it comes to finding yourself a low brokerage demat, the first step is to understand – What is brokerage?
Brokerage is a fee charged by brokers to investors. A broker trades securities with the exchange, on behalf of the investor. For this particular service the fee charges is brokerage.
Low brokerage demat accounts usually do not provide specialised research and advisory services to the investors. The brokerage charges however are much more reasonable than a traditional or a premium broker. Low brokerage accounts are usually great for do-it-yourself investors. These type of investors are constant learners.
Services offered on a low brokerage demat account vary from broker to broker. Some broker do assist investors with we-researched portfolios and updates them with market conditions. While some brokers provide simple brokage services only.
Low brokerage demat accounts can be divided into two categories:
- Account charges on basis of every trade made
- Account charged on the monthly basis fpr unlimited trades.
Choosing a broking partner is an imperative part of investing process. However, you should not lose a lot of your time in this process. As you can always switch to another broker and investing your money into meaningful assets is more imperative.
A demat account stores all your assets. Now these assets include:
- Equity shares
- Mutual funds
- Government securities
- Corporate bonds.
A demat account helps you monitor, hold and transfer your securities. Brokerage is charged every time you trade these securities. And brokerage is a percentage charge on thee value of assets traded. Therefore, a low brokerage account goes a long way to help your finances.
Also, some brokers allow trading margins and researched products to review portfolio smartly. Low brokerage demat accounts allows investors to trade and invest frequently without worrying about the transaction costs. Opening a 3 – in – 1 opening demat account is more convenient for an investor. Investors get cohesive statement every monthly.
Apart from brokerage and transaction charges, here are some of the other charges on a demat account:
Demat account opening charges is the very first amount that you will be charges. This is just one time charges. The account opening charges is waived off by some broker houses to encourage first time investors. First time investors can open a free demat account.
Annual maintenance charges (AMC)
These charges may vary from Rs. 300 to Rs.1000 depending on your depository participant (DP) On opening of a demat account your AMC charges for the first one year may get waived off.
Small Individual investors whose holdings with a basic demat account is below Rs.50,000 need not pay any AMC charges. Those with holdings above Rs,50,000 will gave to pat AMC charges.
As said the digital storage like any other storage vault also charges custodian fees. This demat account charge is annually charged. It safes stores all your financial assets in electronic form and allows investors to monitor them.