If you want to begin your trading career, you’ll need a demat account. It is now quite simple to register a demat account digitally thanks to virtual transformation. Many customers, however, are puzzled regarding the Demat Account Minimum Balance requirements. Let’s go through it in depth to eliminate any doubts you might have.
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Demat Account Minimum Balance Requirement
Previously, opening a demat account was not an affordable concept. The depository participant demanded unreasonable fees to open a demat account.
However, the situation has transformed, and now it is not just simple but also inexpensive to get a demat account. To open a demat account, you do not need to invest a minimum amount.
The minimum deposit to start a demat account varies depending on which DP you choose. Based on your DP, the minimum amount varies from 0 to 500 rupees.
In addition, several DPs now provide free demat accounts with no account opening fees. This was introduced to attract more public stock market participation.
Demat Account Zero Balance
There is no requirement of minimum balance in demat account. A demat account is a digital account that enables you to digitally hold stocks and other assets.
Since a demat account can just hold assets and not cash, there are no minimum balance limitations. Regardless of whether you have stocks to deposit in your demat account or not, it will stay active.
Demat Account Minimum Charges
There is no requirement of Demat Account Minimum Balance. However, you may have to pay a few fees when opening a demat account. Here are a handful of them in a brief.
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Demat Account Opening Charges
As previously indicated, a number of stockbroker companies provide demat accounts with no initial fees. Nevertheless, not all companies provide free demat accounts, and some impose annual fees upfront. As a result, you should inquire about the demat account’s opening fees with the institutions or stockbroker.
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Annual Maintenance Charges
Demat account maintenance fees are payable to the stockbroker once a year by the account holder. Many stock brokers provide reductions on the first year’s AMC.
For the first year, a few stock brokers waive the AMC entirely. If this is the situation, you will begin paying AMC in the 2nd year.
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Transaction Charges
Depository participants levy a small fee for each debit or credit activity in your demat account. The transaction charge is the name for this levy. Rather than charging you a fee for each trade, some DPs will bill you on a monthly basis.
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Custodian fee
The DP charges a Custodian fee for safely storing your stocks and other assets in the demat account. The fees you pay are determined by the quantity of securities in your demat account. The fees are usually paid once a year and range between Rs. 0.5 and Rs. 1 per ISIN (number of assets) for a month.
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Charges for dematerialization and rematerialisation of stocks
When you seek the dematerialization of physical share certificates or the transfer of digital equities to physical share certificates, depository participants typically charge a small fee. The cost of a share certificate might vary from Rs. 5 to Rs. 25.
How to open a demat account with no minimum balance Requirement ?
Following the easy steps below, you may open a demat account online without any minimum balance in demat account:
- Complete the account starting form
- Submit digital copies of all necessary papers
- Perform the in-person verification (via video call)
- After valid authentication, receive an account number/ID
Click here to start the process
Conclusion
In the current environment, you are unlikely to pay or maintain any minimum balance in demat account to open it or keep it active.
This is all from our side regarding Demat Account Minimum Balance. Let us know your views about zero balance demat account in the comment section.
Other interesting blog related to Demat Account Minimum Balance
Documents Required for Demat Account
Frequently Asked Questions About Minimum Amount to Open Demat Account
Can demat account have zero balance?
You don't need any stocks to start a Demat account; in general, your account can have no balance at all.
Is there any monthly charges for demat account?
Custodian fees are charged on a monthly basis by DPs. These fees are calculated based on the number of assets kept in a demat (also known as a dematerialized) account. For every ISIN, the prices usually vary around Rs 0.5 and Rs 1. (International Securities Identification Number)
Is savings account necessary for demat account?
Yes, if you want to invest in the stock market, you should know that you'll need to open a demat account, a trading account, and a savings account. Money is automatically debited/credited from your savings account, and stocks are credited/debited from your demat account.
Which demat account is free?
Groww, Prostocks, Trustline which offer free demat account without amc charges.
Minimum balance in trading account?
A trading account with any discount broker does not require a minimum deposit. Brokerage fees are also only charged when you trade.
