That said, before you go ahead and open an account for yourself, you need to first understand the different trading account charges that stockbrokers levy and what they mean. Here’s a detailed guide on some of the commonly levied trading account fees and charges.
Before you learn about the trading account opening free and charges, first take a look at how to open a trading account with Bajaj Broking.
Follow these steps to open Demat & Trading Account with Bajaj Broking:
Stockbrokers often levy a gamut of trading fees for different kinds of transactions that you make. These fees and charges on trading accounts are a major source of revenue for brokers. Let’s take a look at the various trading account charges that investors such as yourselves will have to pay.
The account processing charge is a nominal fee that’s levied for processing your trading account opening application. Fortunately, except for a few entities, not many stockbrokers levy this particular trading account charge.
The trading account opening charge is a one-time fee that’s levied by stockbrokers at the time of opening the account. It can range anywhere from ₹500 to ₹999,excluding GST and other taxes. Most stockbrokers usually waive off the trading account opening charges.
The Account Maintenance Charge (AMC) is a recurring fee that’s levied annually by the stockbroker in exchange for providing trading account services and maintaining the account. As with the other trading account charges, quite a few stockbrokers don’t levy this particular fee.
You need to first transfer funds into your trading account to be able to purchase shares and other securities via the stock exchanges. The fund transfer charge is a nominal fee that brokers levy for transferring funds from your bank account to your trading account. These trading account fees are levied to offset the fund transfer payment gateway costs incurred by the broker.
Brokerage is one of the most important trading account charges that you need to know about. Stockbrokers levy brokerage for every single buy and sell transaction that you make via their trading account. The amount of brokerage per transaction that you’re liable to pay may vary depending on the stockbroker. The brokerage may be charged as a flat-rate fee per transaction or as a percentage of the total transaction value.
STT does not form a part of the trading account charges levied by the stockbroker. Instead, it is the tax that every trader and investor is required to pay to the government on both buy and sell transactions. The rate of STT differs depending on the trade segment.
The transaction charge is a fee that’s levied by the broker for every single trade that you make. Although these trading account charges are levied by the stockbroker, it is in fact paid to the stock exchange in which the trade was executed. These charges are levied as a percentage of the total trade value and will vary depending on the stock exchange and the trade segment.
For intraday trades, you’re required to square off all of your open positions before 3.20 PM (IST). If the positions remain open beyond the stipulated time, the stockbroker will automatically square them off for you. However, brokers generally levy a nominal fee for triggering their auto square-off mechanism. The trading account fees for auto square-off usually range between ₹40 to ₹60 per transaction.
An off-market transfer is the transfer of securities from one demat account to another without the involvement of the stock exchange. In the case of such transfers, the stockbroker usually levies a nominal off-market transfer charge per transaction.
Delayed payment charges are levied by your broker if your trading account has a negative fund balance. It is represented as a percentage of the total negative fund balance in your account and is levied every day until you clear off your dues.
The Client Master Report (CMR) is a document that consists of key details such as the name of the client, address as per the broker’s records, date of birth, demat ID, BO ID, nomination details and bank details, among others.
The CMR is usually issued as a digitally signed PDF document. However, you can place a request for a physical CMR copy as well. Stockbrokers often levy a fee for processing such requests. This trading account fee is inclusive of printing charges, courier charges and GST.
In addition to the ones mentioned above, you may also be liable to pay other trading account fees and charges like SEBI turnover charges, auction charges and stamp duty. If you’re a regular trader, it is important to pay attention to the trading fees since they can quickly add up as the volume of trades increases. Therefore, always make sure to compare the trading account charges of multiple stockbrokers before opening an account. This will allow you to make a more informed decision.
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