To start investing in stock, all you need is a Demat account, Trading account & Saving account. But all these accounts come with some other charges. Before you open these accounts better understand the opening & maintenance charges better to repent in the future. Be aware when you see advertisements like Lifetime Free Demat account without annual maintenance charges. It could be a market gimmick to cover up these charges in the name of the high brokerage. While opening an account with such brokers, the best is to compare their brokerage charges as this will hit you more in long run. For the sake of luring investors, these brokers offer a Lifetime Free Demat account without AMC in 2023. So let’s begin.
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Demat Account & Annual Maintenance Charges
Demat accounts help investors to hold securities in electronic form. It takes away the hassles of physical handling and maintenance of paper shares and their related documents. Let’s understand this with an example: Let’s say you buy a stock of Reliance industries on NSE. Each time you buy a stock, the exchange issues a physical certificate in your name to certify holding has been transferred in your name. This process requires a lot of paperwork and each transaction entry is to be entered. To do away with this, in 1996 Indian government introduces the Demat account to settle the trades which saves tonnes of paperwork.
Therefore, when you buy any shares, a credit entry will be passed in your Demat account with the holding details. On the other hand, a debit entry gets created when you sell off the stocks. That makes your life easy by managing your account in electronic form.
When you open a Demat account, it comes with several charges like Demat account opening charges, custodian charges, annual maintenance charges & dematerialization or rematerialization charges. With increasing competition in broking industries, brokers attract investors with offerings like zero account opening charges with zero maintenance charges for the first year. Now with the market deepening few players have started offering lifetime Free Demat accounts with no annual maintenance charges.
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Lifetime Free Demat Account without AMC in 2023
Let’s check out the players that offer Lifetime Free Demat accounts without AMC in 2023 so its best to compare their brokerage for each segment:
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| Player | Intraday (Equity) | Delivery(Equity) | Equity Futures | Equity Options | AMC |
|---|---|---|---|---|---|
| Pro-stock | ₹15 Per Order | Zero | Per Order@Rs 15 | Every transaction is charged Rs 15 | Lifetime Free with a one-time charge of 1000/- & refundable on account closure |
| Groww | ₹20 or 0.05% whichever is low Per Order | 0.05% or Rs.20 whichever is low Per transaction. | ₹20 Per Executed Order | Each transaction is charged Rs 20. | Nil |
| Trustline | 0.02% per transaction. | 0.2% per executed order | 0.02% per executed order | Rs 75 per lot | Zero |
| Wisdom Capital | 0.01%* | Each trade is charged @0.01% | Rs. 9/-Trade | Transaction levy Rs 9 per order | A one-time charge of 999/-+ GST |
With some or other conditions, these players can offer free Demat accounts with no annual maintenance. However, when you open an account with these brokerage firms do read their terms and conditions in the application form. Therefore, to avoid any issues in the future. In addition, check their rating on the SEBI website and utmost hear their customer voices to understand whether you’re heading in the right direction or not.
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