Last Updated: Apr 04, 2024 Value Broking 4 Mins 1.6K

Warning: Undefined array key "titleWrapper" in /usr/local/lsws/vb_staging/html/wp-content/plugins/seo-by-rank-math/includes/modules/schema/blocks/toc/class-block-toc.php on line 103

Account Maintenance Charges (AMC) refers to the charges levied by a Depository Participant (DP) for maintaining the Demat account. It is mandatory to pay the fee. AMC charges are recurring in nature. Usually, the investors have to pay it annually or quarterly. 

Every DP or broker levies the AMC for Demat accounts on its customers. However, they vary from one broker to the other. It is essential to check the AMC charges before opening a Demat account with a broker.

Understand AMC Charges for a Demat account

The Account Maintenance Charge (AMC) is the fee levied by a Depository Participant (DP) to maintain the Demat account. The fee is charged to recover the expenses incurred by the stockbroker to operate the electronic account.

All the DPs or stockbrokers levy AMC charges for their services. Before opening a Demat account, you must be aware of these costs. Investors have to pay the AMC charges every year. They must make the due payment at the start of each fiscal year.

AMC Charges of Top Stock Broker

Top Brokers Account Maintenance Charges

Sr. NoStock BrokerActive ClientAccount Opening FeesAMC Charges
1ICICIdirect1,875,350Free700
2Groww7,092,41300
3Zerodha6,598,363300300
4Angel One5,098,1240240
5Upstox2,237,97400
6Kotak Securities1,055,7170600
7HDFC Securities1,016,32900
8Motilal Oswal807,7860199
9SBI Securities757,6358500
10Paytm Money740,28500
11Sharekhan624,89100
125paisa495,0660300
13IIFL Securities413,2440250
14Dhan310,07000

Types of AMC Charges for a Demat Account

A Demat account provides a variety of facilities, and the investor has to pay for all of them. The following are the types of Demat account charges.

1. Demat Account Opening Charges

Some brokers charge a certain amount for opening a Demat account. It is the charge an investor needs to pay to open a Demat account. The broker levies it for the cost incurred in the account opening procedure.

2. Charges for Dematerialisation

Dematerialisation allows investors to hold paper security certificates in an electronic format. The broker charges a fee for converting the shares. While some brokers charge a fixed price per certificate, others levy a fee based on the assets’ value.

3. Demat Account Custodian Fees/Safety Charges

This charge depends on the number of investments held in the Demat account. Many DPs pay the one-time fees to the depository as custodian fees.

4. Demat Account Transaction Charge

These changes are applied when the investor buys or sells a security. The DP charges a certain amount of fee on each transaction. Some DPs levy a fixed fee, while others charge it based on the trading volume.

5. Share Pledging Charges

Investors may pledge the equity shares present in their Demat account as collateral for margin trading. The broker charges a pledge creation fee each time an investor pledges the shares in his Demat account.

6. Demat Account Maintenance fee

The DP levies an account maintenance fee for maintaining your Demat account. It usually includes the costs for offering services like consolidated account statements (CAS), record keeping, etc. It is usually charged annually.

Top Brokers Brokerage Charges and Fees

Sr. No.Stock BrokerEquity Delivery TradingEquity Intraday TradingCommodity Options TradingEquity Futures TradingEquity Options TradingCurrency Futures TradingCurrency Options Trading
1ICICIdirect0.55%0.05%200.05%952020
2Groww0.05%0.05%NA2020NANA
3Zerodha00.03%200.03%200.03%20
4Angel One00.03%200.25%200.25%20
5Upstox2.50%0.05%200.05%200.05%20
6Kotak Securities0000000
7HDFC Securities0.15%0.02%100.03%1001210
8Motilal Oswal0.20%0.02%2000.02%202020
9SBI Securities0.50%0.05%NA0.05%1000.03%30
10Paytm Money200.05%NA0.02%10NANA
11Sharekhan0.30%0.02%200.02%200.02%5
125paisa20201020202010
13IIFL Securities0202020202020
14Dhan00.03%100.03%200.03%20

Conclusion

As you may understand now, you will have to pay the AMC regardless of your DP, but it is always up to your decision to choose the one with whom you can discuss and implement your investment strategies. You can go for a DP that charges many charges for AMC but provides a good facility, or you can choose one that charges fewer AMC but suits your requirements and investment goals the most.

Compare all the brokers and make your decision. But always remember to choose wisely and not take your decision rashly if you do not wish to complain later.

Frequently Asked Questions (FAQs)

Your Demat account provider may make your Demat account inactive if you don’t pay the account maintenance charges on time.

It entirely depends on your depository participant. It could be more or less dependent on what type of DP you have chosen.

It gets charged every quarter or every three months from the opening date of your Demat account. Or it can also depend on your DP.

Consider creating a brokerage account with platforms that provide no AMC plans or fee waivers for a set period of time if you want to avoid paying AMC costs. Some brokers may forgo AMC costs if you maintain a certain account balance or execute a certain number of transactions each month.

To offset the costs of administering and maintaining your trading account, brokers charge AMCs (Annual Maintenance Charges). These fees go towards maintaining the platform and providing necessary services, customer care, and account management all year round.