Demat account opening is as simple as starting a savings account in a bank. A demat account is really a dematerialized account that contains dematerialized shares, just like your saving bank account retains your savings. An account has to be opened with a depository participant (DP). All the banks and also broker agents that offer depository services are DPs, but all the DPs aren't banks or brokerages.



There is a specific amount which is said to be taken care of in the bank savings account to be able to proceed getting the bank's services. However in the the situation of demat account, there are mainly 4 costs which are levied about it. The four charges are Account opening fee, yearly maintenance price, transaction fee and custodian fee. Each one of these charges are different for each and every DP.



Account starting cost is supposed to be paid just during opening the demat account. Charging opening fee from the customer is not compulsory and therefore the DP might or might not cost it. Interestingly, a few stock trading brokers and banks may levy a minimal cost for the stamp papers that could be required by you for performing the contract with your DP.



Yearly servicing fee yearly maintenance costs are also referred to as folio upkeep fee, which is generally charged in advance.



In online trading, trades are executed with an online trading platform given by the online broker. The agent, via their platform offers the trader access to industry data, news, charts as well as alerts.



Brokerage fee levied for that debiting and/or crediting of shares to and from the account every month. Some of the DPs levy a fixed amount as fee for every transaction, although other few calculate their fee on the basis of the total value of the transaction. Apart from that, some of the DPs offer regular dealer accounts in which the energetic traders are charged with lower fees as even compares to the costs levied by them around the non-frequent investors.



Handler fee this is charged on a monthly basis and is determined based on the amount of shares your demat account holds. The fee is charged approximately INR0.5 to INR1 per share per month.