Demat Account Opening Charges

What is a Demat Account?

A Demat account is a digital account where you can electronically store the shares you have bought or inherited. It is a very secure way of storing your owned shares, as this prevents any loss or damage. A Demat account can be opened online and only in a few steps. You can store all kinds of securities like bonds, ETFs, mutual funds, and shares. Opening a Demat account was a tedious and expensive task in the yesteryears, however, with online stockbrokers like Bajaj Financial Securities Limited, you can open a Demat and Trading A/c for free.

How do Online Demat Accounts Work?

A Demat account helps to eliminate the risk of holding securities in the physical form. Demat account is used to store shares digitally. Every time you buy a share, a digital copy of the share is stored in the Demat account. This makes the process of buying and selling shares in the stock market simple. With an online Demat account you can hold multiple forms of securities in one place, and it also helps you track every share that you have bought in one view. A Demat account is registered with all the governing and monitoring bodies like the exchanges, SEBI, and depositories to ensure a secure and smooth experience for you.

What are the Different Types of Demat Account Charges?

There are various transaction charges involved with a Demat account. These charges are levied by various governing bodies and the Government of India. Let us understand these charges one by one.

Why Choose Bajaj Financial Securities Limited?

Bajaj Financial Securities Limited is a 100% subsidiary of Bajaj Finance Limited, a reputed name in the finance sector for decades and one of the largest retail asset financings NBFCs in the country. Bajaj Financial Securities Limited’s endeavor is to make stock market investment accessible to larger masses. BFSL has a Corporate Credit Rating of ‘CCR AAA/Stable’ from CRISIL – indicating its strong liquidity position and the ability to withstand difficult economic conditions.

At BFSL, customers get the benefit of one of the lowest brokerage rates in the industry. Brokerage can get as low as Rs. 5 flat/order, for trading in all segments (intraday, delivery, futures & options). BFSL keeps in mind the interest of both traders and investors. It offers its services through the BFSL Trade App and its website. Along with one of the lowest brokerage fees in the industry, it has diverse offerings for investors:

1. Low Brokerage Rates

Brokerage charge is sunk cost for investors. Full-Service brokers anyways charge a high brokerage of the order of 0.25% to 0.50% of the transaction value which means Rs.5 per Rs.1000 invested or Rs. 500 per 1 lac invested.

While discount brokers have created a space of their own by offering an avg. of Rs.20 per order, Bajaj Financial Securities Limited stands apart by offering still lower brokerage rates in discount broking.

BFSL gives brokerage as low as Rs. 5 per order through its subscription plan named , Bajaj Privilege Club. At Rs.9999 per annum.

This includes GST & there are no AMC charges. One level below this plan is the Professional subscription plan at Rs.2500 per annum. Where the brokerage reduces to Rs. 10 per order in all segments.

The final subscription plan is the Freedom Plan which is free of cost for one year. There is no AMC also. From the 2nd year onwards, charges are Rs. 431. Even with the free pack, a brokerage in Intraday & F&O is lower than most discount brokers at just Rs. 17 per order. Delivery orders have a brokerage of 0.1% which means Re.1 per Rs.1000 invested.

Now an options trader for example might take 5 trades in a day to take a new position or adjust existing ones. If there are 20 trading sessions in a month, total trades will be 100 & brokerage at Rs.20 will be Rs.2000 in a month. If the same pattern continues for 12 months, the total brokerage cost will be almost Rs.24,000.

Not taking note of the brokerage being charged might keep you unaware of the quantum of your investible money which gets leaked out through brokerage charges.

2. Margin Trade Financing at low-interest rates:

This allows investors/traders to boost their buying power by up to 3.5x. Traders with low initial capital can use this feature to take bigger positions on their desired stocks. MTF is available at 9.25%: one of the lowest interest rates in the industry. This means that an investor can take 1 lakh MTF and pay just Rs.25 per day as interest. Add to that just Rs. 5 per order brokerage and it turns out to be a great deal! Sunk cost is minimized to the lowest level so that the maximum part of your capital is utilized in investment.

You can also view MTF as a feature that gives you the power to buy now & pay later. This means that you can pay the margin amount to take a position under MTF in the delivery trade when the price was attractive. After 20 days, for example, you get fresh capital- you can utilize that to change the MTF order to regular delivery order by paying the balance amount post margin. The broker will take interest in the number of days the position is carried out.

3. PickRight: Building Long Term Portfolio through expert picked stock baskets

BFSL is continuously progressing with the addition of new features keeping customers’ interests in mind. A recent development is a partnership with PickRight - to take investment experience to the next level. Rather than the one-off stock recommendation, it allows investors to choose a stock basket representing various themes and build a long-term portfolio.

These stock baskets allow investors to pick a theme-based, diversified portfolio of stocks, ETFs, etc. – like Smartcase whose theme is Stability with Growth. It has a collection of ETFs to provide stability in volatile markets and stocks picked up from good-performing sectors for growth. Combine this with the low brokerage offer of Bajaj Financial Securities Limited and investors can reap the benefits non-stop.