AMC for Demat Account

There’s a saying that every service has a cost. Irrespective of whether you know the value or not, you always end up paying it. The same is for a Demat Account where everyone pays an AMC for Demat Account.

An AMC is nothing but an annual maintenance charge or cost that goes into the pocket of your stockbroker. This charge is paid for maintaining the account you hold with the stockbroker.

Your demat account would store your shares in the dematerialized format (i.e. electronic) and you do not need to worry anymore about the security of your holdings.

For this superb facility that enhances your trading experience, some brokers charge a fixed amount, and others don’t. Although, those who don’t charge anything have some applicable terms & conditions.

Thus, to initiate trading you have to pay certain AMC for Demat Account along with Demat account opening charges.

Demat Account Maintenance Charges

On the lines to charge an amount in exchange for providing you with assistance in various ways, Depository Participants, commonly known as stockbrokers or intermediaries, impose you with an annual charge for the Demat account.

This yearly charge was formerly known as Demat account annual maintenance charges but now is known as Demat account maintenance charges (AMC).

The amount charged varies from broker to broker. In fact, in some cases, these depository participants let go of the charges for demat account. There are some conditions the trader is to fulfil to avail the benefit. We’ll talk about this in detail later.

This charge is for maintaining the account. When a trader pays AMC, no extra charge gets debited for trading and commodity accounts, and vice-versa.

A bunch of brokers has different AMC for Demat Account for individual traders and corporates. It is the stockbroker’s discretion to levy these charges.

A lot of traders make their decision to choose a particular intermediary based on the AMC for Demat Account.

Comparing the Demat account maintenance charges is essential in the long run as it is an expense you make while trading. Thus, a lot of traders tend to consider them as a priority when taking the final call.

To ease our readers’ stress, below is a list of Brokers with the AMC for Demat Account:

 

As you can see from the table above, the AMC for Demat account varies from ₹250 to ₹1000-1500 per year depending on the stockbroker. There are a few stockbrokers who charge an upfront cost and your AMC is set free forever till you use that broker’s services.

There are other plans where a higher monetary value is taken from at the start and if in case, you decide to close your demat account, that amount is refunded to your linked bank account.

Free Demat Account for Lifetime

Imagine having a free Demat account with no annual charges.

Sounds exciting.

It does.

Well, you’ll be astonished to know that some brokers offer lifetime free Demat account. Yes, you read that right.

All they expect in return is the fulfilment of some terms and conditions. These terms and conditions vary from a one-time payment of Demat account AMC to subscribing to an offer or proposal laid down by the broker.

Some brokers that offer lifetime free Demat accounts are – Angel Broking, IIFL, Motilal Oswal, etc. Although, you’ve to agree to their terms & conditions to take advantage of these fantastic offers.

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Conclusion

Once the concept of Demat account maintenance charges gets cleared, it becomes easier for the new traders to decide which depository participant suits them the best.

Some brokers offer the opportunity to skip the AMC for Demat Account. It depends on your decision at that time that makes all the difference.

Choose wisely, make profits vastly!

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