What is the Account Maintenance Charge for Demat Account | Motilal Oswal

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Account Maintenance Charge (AMC) is a service fee levied by the stockbroking firm or the depository participant (DP) for providing or offering the demat account services to the traders and investors over a period of time. People who want to trade in the financial stock market should open a demat account simultaneously with the trading account. The demat account benefits traders by holding their shares or securities in electronic form. It enables traders to easily buy and sell shares without any difficulty. Shares also include mutual funds, ETFs, futures, options, and other financial securities.

Now, whether you are looking for trading or investment purposes, having a demat account is obligatory on the part of every trader. Not only does it open multiple windows of opportunities to proliferate your wealth but also aids you to diversify your portfolio. So, to enjoy additional trading and demat account benefits, it’s very important to open a demat account with a popular depository participant cum stockbroker like Motilal Oswal. Well, just like every stockbroking company or depository participant in India, Motilal Oswal also levies various charges for the customers. Motilal Oswal Demat account charges include account opening fee, account maintenance charge, transaction fee, custodian fee, etc. 

  • Account Maintenance Charge

Banks charge customers for the services they provide every month like SMSs alerts, collecting payments, accepting deposits, processing cheque payments, and many other services. Likewise, the stockbroking companies charge certain types of charges periodically. For instance, if you open a demat account at Motilal Oswal, you’ll be levied with an account maintenance charge. Whether you use your demat account or not, every year you have to pay this charge to your stockbroker. 

Failing to pay these charges would make stockbrokers shut down the trader’s demat account. As a result, traders cannot buy or sell shares through their demat account anymore. Initially, stockbroking companies remind traders about the account maintenance charge by alerting them with SMSes, emails, and voice calls. Even after multiple nudges, if the trader still fails to remember paying the account maintenance charge, then the stockbroker finally decides to go for account closure.

Also known as folio maintenance charges, these charges are paid ahead of time by the traders to the stockbrokers. At Motilal Oswal, the account maintenance charge ranges anywhere between Rs 300 to Rs 1000 on a yearly basis. On the contrary, to note, the account maintenance charge value keeps on differing from one stockbroking company/depository participant to another. However, for the first year, some stockbrokers impose zero account maintenance charges to onboard new customers and attract rookie traders. From the following year, the account maintenance charges are applied as usual. Below is the list of  Motilal Oswal demat account charges. 

Particulars

Amount

Scheme name

AMC Scheme

Account Maintenance Charges (AMC)

Rs 550

Account Administration Charges (AAC)

Rs 199

Advance

Rs 0

Demat Transaction Charges - Within MOFSL (Sell only)

Rs 30 or 0.03% (whichever is higher)

Demat Transaction Charges - Outside MOFSL (Sell only)

Rs 40 or 0.04% (whichever is higher)

Dematerialisation (In all schemes)

Rs 50 per request + Rs 50 per certificate

Rematerialisation

Rs 35 per certificate

Pledge, Unpledge, Closure, Invocation

Rs 35 or 0.02% (whichever is higher) per ISIN request

  • Final Words

Having a demat account is the best en route to keep a track of all your trades. Now that the whole operations take place online, with just a click, you can visualize the market in real-time. If you are well acquainted with the stock market, you can swiftly make impromptu decisions concerning what to buy and what to sell through your trading and demat account. For opening and utilizing the demat account with Motilal Oswal, you’ll be charged a diminutive amount in the form of an account maintenance charge. You cannot eschew from paying these charges. Some brokerage firms waive these charges in the beginning, but subsequently, you’ll be added to the list. So, don’t relinquish on such an opportunity. Open a demat account at a reputed brokerage firm like Motilal Oswal and enjoy trading and earning.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account | Best Demat Account in India | Upcoming IPO | LIC IPO

 

 

 

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