Broking houses offer free demat and trading accounts to entice first-time investors. When it comes to freebies, it’s always a good idea to read the fine print.
Here’s a look at some of the brokerages that provide free demat accounts, as well as some of the things to watch out for.
Stock Holding Corporation of India
The term “free SHCIL” refers to the fact that investors do not have to pay annual maintenance fees for the first year (AMC).
SMC Invest
Is a company that invests in small businesses.According to the SMC website, a free demat account can be opened for a limited time. For an integrated demat and online trading account (worth Rs 599) there is no account opening fee, and there are no AMC fees for the first year (which is Rs 399 for the first year).
Is a financial services company based in India.Bajaj Finserv offers investors free demat and trading accounts with no fees. There are no account setup fees or annual account maintenance fees. The brokerage offers two subscription options: a Freedom pack and a Professional pack, each with its own set of brokerage fees. It should be noted that the yearly subscription fee is free for the first year only, after which it will be charged Rs 431.
ICICI Direct
It is an ICICI Bank subsidiary.ICICI Direct offers a 3-in-1 trading account that allows you to open a demat, trading, and bank account all in one place. Demat Accounts have no AMC (Annual Maintenance Charges) for the first year.
However, from the second year onwards, a fee of Rs 700 (exclusive of taxes) is charged. There is no AMC for holding up to Rs 50000 in value if the Demat account is insured by the BSDA.
Charges associated with a demat account.
Fees and broking charges play a significant part in choosing a broker, as they do with any financial service. The transaction fees, in addition to the opening and annual maintenance fees, which are often waived by brokers, are the most important. Keep in mind that you will be charged for each purchase and sale.
Choose the plan that best meets your needs.
The flat pricing plan is the most basic. The brokerage remains the same in this plan regardless of the trading volume. The alternative option is volume-linked pricing, which reduces brokerage if transaction volume exceeds a given threshold. It’s ideal for individuals who trade on the edge of that limit.
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