Demat Account Maintenance Charges: Fees & Costs Explained

By WealthMarg Team / June 6, 2026

These charges cover three main things:

• Account opening fees: A one-time cost to set up your account (though many brokers waive this now).
• Maintenance fees: A yearly or quarterly charge to keep your account active.
• Transaction fees: Costs for buying, selling, or transferring securities.

For most millennials, the biggest culprit is the **annual maintenance charge (AMC)**. It’s like a gym membership you forget to cancel—small amounts add up over time. For example, if your broker charges **₹300/year** and you hold **₹50,000** in stocks, that’s **0.6% of your portfolio** gone just for keeping the account open. Over 10 years, that’s **₹3,000**—enough for a **₹1.5 lakh** SIP (assuming **12% returns**)!

The 5 Types of Demat Account Charges You Need to Know

Not all Demat charges are created equal. Some are fixed, some are variable, and some only kick in when you trade. Here’s the full breakdown:

1. Account Opening Charges

Most brokers have waived this fee to attract new customers, but a few (like some traditional banks) still charge **₹200–₹1,000** to open a Demat account. For example:

• Zerodha and Groww: **₹0** (free account opening).
• ICICI Direct: **₹975** (but often waived with a linked savings account).
• HDFC Securities: **₹999** (sometimes discounted).

Pro tip: If a broker is charging you to open an account, ask if they’ll waive it. Many will if you promise to trade or invest a certain amount (e.g., **₹10,000** in the first month).

2. Annual Maintenance Charge (AMC)

This is the big one—the fee you pay every year just to keep your account active. AMC varies wildly:

• Zerodha: **₹300/year** (charged quarterly at **₹75**).
• Groww: **₹0** (free for life).
• Upstox: **₹150/year** (first year free).
• ICICI Direct: **₹500–₹700/year** (depends on your account type).

Watch out: Some brokers charge AMC even if you don’t trade. For example, if you open a Demat account with a bank like SBI and forget about it, you could be paying **₹750/year** for nothing. That’s why it’s crucial to pick a broker with low (or zero) AMC if you’re a passive investor.

3. Transaction Charges

Every time you buy or sell shares, ETFs, or mutual funds, your broker charges a fee. This is separate from the **brokerage fee** (which is the commission for executing the trade). Transaction charges are levied by the depository (NSDL/CDSL) and passed on to you. Here’s how it works:

• For equity delivery (buying and holding stocks): **0.02%–0.04% of the trade value** (min **₹10–₹25** per transaction).
• For intraday/F&O trades: **₹10–₹20 per trade** (fixed).

Example: If you buy **₹50,000** worth of Reliance shares, your transaction charge could be **₹10–₹20** (0.02% of **₹50,000**). If you’re a frequent trader, these fees can add up fast. Zerodha, for instance, caps transaction charges at **₹325 per trade** for equity delivery, which is great for high-value trades.

4. Dematerialisation and Rematerialisation Charges

Still holding physical share certificates from your parents’ era? You’ll need to convert them to digital form (dematerialisation) to trade them. This costs **₹10–₹50 per certificate**, plus **₹30–₹50** for courier charges. The reverse—converting digital shares back to physical form (rematerialisation)—is rare but costs **₹10–₹25 per certificate**.

Good news: Most millennials won’t need this, but if you inherit physical shares, this is a one-time cost to unlock their value.

5. Pledge and Unpledge Charges

Need a loan against your shares? You can pledge them as collateral. Brokers charge **₹20–₹50 per pledge request**, plus **0.02%–0.05% of the pledged value** as an annual fee. For example, if you pledge **₹1 lakh** worth of shares, you might pay **₹20–₹50** upfront and **₹20–₹50/year** to keep the pledge active.

Pro tip: Some brokers (like Zerodha) offer **zero pledge charges** if you use their loan products. Always compare before pledging.

How to Avoid Paying Unnecessary Demat Account Charges

Here’s the good news: with a little planning, you can slash your Demat fees by **50–100%**. Here’s how:

1. Choose a Broker with Zero or Low AMC

If you’re a long-term investor (not a trader), pick a broker with **zero AMC**. Groww is the best example—it’s free for life, and you can invest in stocks, ETFs, and mutual funds without paying a yearly fee. Zerodha is another great option with a **low ₹300/year AMC** (charged quarterly).

Avoid traditional banks like ICICI or HDFC for your Demat account unless you’re already using their trading platform. Their AMC is **2–3x higher** than discount brokers.

2. Consolidate Your Holdings

If you have multiple Demat accounts (e.g., one with Zerodha and another with Upstox), you’re paying **double AMC**. Close unused accounts and transfer all your holdings to one broker. Here’s how:

• Open a new Demat account with your preferred broker.
• Submit a **Delivery Instruction Slip (DIS)** to transfer shares from the old account to the new one.
• Pay a **₹10–₹25 transfer fee** per scrip (stock).
• Close the old account once the transfer is complete.

Bonus: Some brokers (like Zerodha) offer **free transfers** if you move your holdings to them. Ask before you switch!

3. Opt for Basic Services (If You Don’t Trade Often)

SEBI mandates that brokers offer a **Basic Services Demat Account (BSDA)** for small investors. If your holdings are worth **less than ₹50,000**, you pay **zero AMC**. If they’re between **₹50,000–₹2 lakh**, the AMC is capped at **₹100/year**. This is a game-changer for beginners.

To qualify, your broker will automatically enroll you in BSDA if your portfolio is small. No extra paperwork needed!

4. Avoid Frequent Trading (If You’re a Long-Term Investor)

Every trade incurs transaction charges, brokerage fees, and taxes. If you’re buying and selling stocks every week, these fees can eat **1–2% of your returns annually**. Instead, focus on **long-term investing**—buy quality stocks or ETFs (like the Nifty 50) and hold them for years. Your future self will thank you.

5. Use UPI for Payments (Avoid Extra Charges)

Some brokers charge **₹10–₹25** for adding money via net banking or debit card. But if you use **UPI**, it’s usually free. For example, Zerodha and Groww don’t charge for UPI deposits. Always check the payment options before funding your account.

Demat Account Charges Comparison: Zerodha vs. Groww vs. Upstox vs. ICICI Direct

Not all brokers are created equal. Here’s a side-by-side comparison of the most popular options in India:

Charge	Zerodha	Groww	Upstox	ICICI Direct
Account Opening	₹0	₹0	₹0	₹975 (often waived)
AMC (Annual)	₹300	₹0	₹150 (first year free)	₹500–₹700
Equity Delivery Brokerage	₹0	₹0	₹0	0.55% (min ₹25)
Intraday/F&O Brokerage	₹20 or 0.03% (whichever is lower)	₹20 or 0.05%	₹20 or 0.05%	0.03–0.05%
Transaction Charges (Equity Delivery)	0.0325% (max ₹325)	0.0325%	0.0325%	0.0325%
Pledge Charges	₹0	₹20 per request	₹20 per request	₹25 per request

Winner for beginners: Groww (zero AMC, zero brokerage for delivery trades).

Winner for traders: Zerodha (low brokerage, capped transaction charges).

Avoid if possible: ICICI Direct (high AMC and brokerage).

Key Takeaways: What You Need to Remember

• Demat account charges are like **invisible taxes**—small but add up over time.
• The **biggest fee** is usually the **annual maintenance charge (AMC)**, which can range from **₹0–₹700/year**.
• **Transaction charges** (0.02–0.04% of trade value) apply every time you buy or sell stocks.
• **Groww and Zerodha** are the best for low-cost investing, while **traditional banks like ICICI and HDFC** are expensive.
• You can **avoid AMC** by choosing a zero-AMC broker or opting for a **Basic Services Demat Account (BSDA)** if your holdings are small.
• **Consolidate your holdings** into one Demat account to save on fees.
• **Use UPI** to fund your account—it’s usually free, unlike net banking or debit cards.

5 Actionable Steps You Can Take This Week

Ready to take control of your Demat account charges? Here’s your step-by-step plan:

1. Check your current Demat account charges:
   • Log in to your broker’s app or website.
   • Look for a section called “Charges,” “Fees,” or “Pricing.”
   • Note down your **AMC, transaction charges, and brokerage fees**.
2. Compare with other brokers:
   • Use the table above to see if you’re overpaying.
   • If your broker charges **₹500+ AMC**, consider switching to Groww or Zerodha.
3. Close unused Demat accounts:
   • List all the Demat accounts you’ve ever opened (even old ones from college).
   • Transfer holdings from unused accounts to your main account (use a **DIS slip**).
   • Submit a closure request to the old broker (most have an online form).
4. Opt for BSDA if eligible:
   • Check if your holdings are **below ₹2 lakh**.
   • If yes, ask your broker to convert your account to **Basic Services Demat Account (BSDA)**.
   • This can reduce your AMC to **₹0–₹100/year**.
5. Set a reminder to review charges annually:
   • Add a calendar event for **January 1 every year** to check your Demat charges.
   • Compare with other brokers and switch if a better deal is available.

FAQ: Your Top Demat Account Charges Questions Answered

1. Is a Demat account mandatory for investing in stocks?

Yes. Since 1996, SEBI has made it compulsory to hold shares in **dematerialised (digital) form**. You can’t buy or sell stocks without a Demat account. However, you can invest in mutual funds (via platforms like Groww or ET Money) without one, as they’re held in a **foliowise** format.

2. Can I have multiple Demat accounts?

Yes, but it’s not recommended. You can open multiple Demat accounts with different brokers, but you’ll pay **AMC for each one**. It’s better to consolidate your holdings into one account to save on fees. The only exception is if you want to separate your **trading and investing** accounts (e.g., one for intraday trades and another for long-term holdings).

3. What happens if I don’t pay my Demat account AMC?

If you don’t pay your AMC, your broker will **freeze your account** after sending reminders. You won’t be able to buy or sell stocks until you clear the dues. If you ignore it for too long, the broker may **close your account** and transfer your holdings to a **suspense account** (which can be a hassle to recover).

Pro tip: Set up **auto-pay** for your AMC to avoid missing payments. Most brokers allow this via UPI or net banking.

4. Are there any hidden charges in a Demat account?

Unfortunately, yes. Some brokers sneak in extra fees, such as:

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