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When an individual opens a Demat account, then he needs to pay an amount every year. Generally, the brokers have no provisions of AMCs for basic Demat accounts having a balance up to Rs. 50,000.<br>
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The Demat account is an abbreviation for the dematerialized account. It is a facility that lets you hold company securities and shares electronically. In Demat accounts, users can even store securities like mutual funds, stocks, exchange-traded funds, bonds, etc. in dematerialized format. Whenever an individual places an order for buying a stock his shares are automatically credited to the Demat account. In the same way, if he opts for selling the shares, then the shares get debited from the Demat account. Many top brokers in India offer 3-in-1 Demat accounts that substantially link an individual’s bank and trading accounts. This rewarding facility helps an individual in trading effortlessly without the requirement of physical share certificates. The best demat account in India act not only as a safe house for your investments but also immensely speeds up the transactions and greatly reduces trading costs. Traders mandatorily need to have a Demat account for trading in the stock market. The accounts act as a medium for facilitating trade by storing the securities in the same way as the bank account holds money. Now with the advent of technology and the availability of top brokers in India on their respective trading apps, people can trade effortlessly. From buying-selling of shares to trading in mutual funds, owning a Demat account can soften your trading ordeal. But in the modern world, nothing is free of cost, same is the case with Demat accounts where you need to pay a specific amount for trading seamlessly. Below is the list of charges that an individual is liable to pay for efficient handling of Demat accounts- 1. Account Opening Charges Account Opening Charges - - Most of the time, traders need to pay a nominal account for Demat account opening which is even exempted in some cases. Top brokers in India have provisions for free Demat accounts if traders open a 3-in-1 account. This 3-in-1 account offers the cumulative services of a trading account, savings account, and a Demat account. 2. Safety Charges Safety Charges - - Previously, traders had a hard time protecting their share certificates. But with Demat accounts, there’s no such provision. These shares cannot be stolen as they are in dematerialized format. The depository participants and banks charge an amount annually for protecting the shares.
