Demat Account Charges Comparison 2026: AMC, Brokerage and Hidden Fees All Brokers

Why Demat Account Charges Matter in 2026

If you're investing in India, your Demat account is your gateway to stocks, mutual funds, and bonds. But the fees don’t stop at opening the account. From Annual Maintenance Charges (AMC) to brokerage and hidden costs, these charges can eat into your returns over time. In 2026, the competition among brokers has intensified, with some offering zero AMC and others charging ₹500–₹1,500 per year.

For example, a ₹10 lakh investment with a 12% annual return could lose over ₹15,000 in 5 years just to AMC fees if you choose a high-cost broker. That’s why comparing Demat account charges is critical before you open an account.

Demat Account vs. Trading Account: What’s the Difference?

A Demat account holds your securities (stocks, bonds, mutual funds) in electronic form, while a trading account is used to buy and sell them. Both come with fees:

• Demat AMC: Annual fee for maintaining your Demat account (₹0–₹1,500).
• Trading account fees: Brokerage, transaction charges, and STT (Securities Transaction Tax).
• Hidden fees: Account closure, reactivation, or pledge charges.

Always check both accounts’ fee structures to avoid unexpected costs.

Types of Demat Account Charges in India (2026)

Demat account charges fall into three main categories. Here’s what you need to know:

1. Annual Maintenance Charges (AMC)

AMC is the fee your broker charges to keep your Demat account active. In 2026, brokers offer two models:

• Zero AMC: Free for the first year, then ₹0–₹300/year (e.g., Zerodha, Upstox).
• Tiered AMC: ₹300–₹1,500/year based on holdings (e.g., ICICI Direct, HDFC Securities).

Pro tip: If you’re a passive investor, zero-AMC brokers save you ₹500–₹1,000 annually.

2. Brokerage Fees

Brokerage is the commission you pay per trade. In 2026, brokers use three models:

• Flat fee: ₹0–₹20 per trade (e.g., Zerodha, Angel One).
• Percentage-based: 0.01%–0.50% of trade value (e.g., ICICI Direct, Kotak Securities).
• Subscription plans: ₹500–₹2,000/month for unlimited trades (e.g., Upstox Pro).

For frequent traders, flat-fee brokers are cheaper. For occasional traders, percentage-based may work better.

3. Hidden and Miscellaneous Fees

These are the sneaky charges that catch investors off guard:

• Account closure fee: ₹100–₹500 (some brokers waive this).
• Reactivation fee: ₹200–₹500 if your account is dormant.
• Pledge charges: ₹20–₹100 per request (for loans against securities).
• SMS alerts: ₹15–₹30/month (optional but often enabled by default).
• DP transaction fee: ₹10–₹30 per debit transaction (when selling shares).

Always ask for a full fee schedule before opening an account.

Demat Account Charges Comparison 2026: Top 10 Brokers

Here’s a side-by-side comparison of Demat account charges for the most popular brokers in India as of April 2026. Rates are based on publicly available data and may vary by account type (e.g., basic vs. premium).

₹0

Note: AMC waivers (e.g., ICICI Direct’s ₹500 AMC if you trade) are subject to conditions. Always verify with the broker.

How to Choose the Cheapest Demat Account in 2026

Picking the right broker isn’t just about the lowest fees. Here’s how to evaluate:

Step 1: Calculate Your Trading Volume

If you trade 10 times a month with an average trade value of ₹50,000:

• Flat-fee broker (e.g., Zerodha): ₹20 x 10 = ₹200/month.
• Percentage-based broker (e.g., ICICI Direct): 0.55% of ₹50,000 = ₹275 per trade → ₹2,750/month.

In this case, flat-fee wins by a huge margin.

Step 2: Check AMC Waivers

Some brokers waive AMC if you meet trading thresholds. For example:

• ICICI Direct: AMC drops to ₹500 if you trade 3 times/month.
• HDFC Securities: AMC drops to ₹750 if you trade once/quarter.

If you’re an active trader, these waivers can save you hundreds.

Step 3: Compare Hidden Fees

Don’t overlook:

• Pledge charges: Needed if you take a loan against shares (₹20–₹100 per request).
• SMS alerts: ₹15–₹30/month (disable if you don’t need them).
• DP transaction fee: ₹10–₹30 per debit (when selling shares).

Step 4: Evaluate Platform Features

Cheaper isn’t always better. Consider:

• Research tools: ICICI Direct and Kotak Securities offer in-depth reports.
• Mobile app: Paytm Money and Groww have user-friendly interfaces.
• Customer support: Traditional brokers (HDFC, Sharekhan) offer branch support.

Zero AMC Demat Accounts: Are They Really Free?

Brokers like Zerodha, Upstox, and Groww offer zero AMC in the first year, but there’s a catch:

• Hidden costs: Brokerage fees (₹20 per trade) add up for frequent traders.
• Inactivity fees: Some brokers charge ₹50–₹100/month if you don’t trade for 6+ months.
• Reactivation fees: ₹200–₹500 to reopen a dormant account.

For passive investors (e.g., holding stocks for years), zero-AMC brokers are ideal. For active traders, compare total costs.

Brokerage Fees Decoded: Which Model Saves You More?

Brokerage models in 2026 fall into three categories:

1. Flat-Fee Brokers (Best for Frequent Traders)

Examples: Zerodha, Upstox, 5Paisa.

• Pros: Predictable costs (₹0–₹20 per trade).
• Cons: No free research or advisory services.
• Best for: Day traders, swing traders, and those who execute 10+ trades/month.

2. Percentage-Based Brokers (Best for Long-Term Investors)

Examples: ICICI Direct, Kotak Securities, Sharekhan.

• Pros: Lower % for small trades (e.g., 0.1% on ₹10,000 = ₹10).
• Cons: Costs spiral for large trades (e.g., 0.5% on ₹1 lakh = ₹500).
• Best for: Investors who buy and hold for years.

3. Subscription Plans (Best for Heavy Traders)

Examples: Upstox Pro (₹500/month for unlimited trades).

• Pros: Fixed cost for unlimited trading.
• Cons: Only worth it if you trade 50+ times/month.
• Best for: Professional traders or high-volume investors.

AMC Charges: How to Avoid Paying Too Much

AMC fees can silently drain your portfolio. Here’s how to minimize them:

1. Opt for Zero-AMC Brokers

Brokers like Zerodha, Groww, and Paytm Money charge ₹0 AMC in the first year. After that, it’s ₹300/year—still cheaper than traditional brokers.

2. Use AMC Waivers

Some brokers waive AMC if you meet conditions:

• ICICI Direct: ₹500 AMC if you trade 3 times/month.
• HDFC Securities: ₹750 AMC if you trade once/quarter.
• Kotak Securities: ₹400 AMC if you trade once/month.

3. Close Unused Accounts

If you have multiple Demat accounts, close the ones you don’t use. Reactivation fees (₹200–₹500) can add up.

4. Negotiate with Your Broker

If you have a large portfolio (₹50 lakh+), ask for a discount on AMC. Some brokers offer custom rates for high-net-worth clients.

Hidden Fees That Can Cost You ₹5,000+ Annually

These fees are often buried in the fine print:

1. DP Transaction Fee

Charged when you sell shares (₹10–₹30 per debit). For 50 trades/year, that’s ₹500–₹1,500.

2. Pledge Charges

If you take a loan against shares, pledge requests cost ₹20–₹100 each. For 10 requests/year, that’s ₹200–₹1,000.

3. Inactivity Fees

Some brokers charge ₹50–₹100/month if you don’t trade for 6+ months. Over 2 years, that’s ₹1,200–₹2,400.

4. SMS Alerts

Enabled by default on many platforms (₹15–₹30/month). Disable them if you don’t need real-time alerts.

5. Account Closure/Reactivation Fees

Closing an account costs ₹100–₹500. Reactivating a dormant account costs the same. Over 5 years, this could add up to ₹1,000.

Demat Account Charges for Mutual Funds and IPOs

If you invest in mutual funds or IPOs, here’s what to expect:

Mutual Fund Charges

• AMC: ₹0–₹300/year (same as Demat AMC).
• Brokerage: ₹0–₹100 per SIP (some brokers charge a flat fee).
• Exit load: Charged by the mutual fund, not the broker (0%–2% depending on the fund).

For example, Groww charges ₹0 AMC for mutual funds, while ICICI Direct charges ₹300/year.

IPO Charges

• Brokerage: ₹0–₹100 per IPO application (most brokers don’t charge).
• Banking charges: ₹0–₹50 for UPI/IPO funding (Paytm Money charges ₹0).
• Allotment fees: ₹0 (SEBI regulates IPO allotment).

IPO investing is mostly free, but check for hidden UPI charges.

How to Switch Brokers Without Losing Money

If you’re unhappy with your current broker’s fees, switching is easier than you think:

Step 1: Open a New Demat Account

Choose a broker with lower fees (e.g., switch from HDFC Securities to Zerodha).

Step 2: Transfer Securities

Use the off-market transfer facility to move shares to your new account. This costs ₹10–₹30 per ISIN (stock code).

Example: Transferring 10 stocks costs ₹100–₹300.

Step 3: Close the Old Account

Submit a closure request to your old broker. They’ll refund any unused AMC and close the account.

Note: Some brokers charge a closure fee (₹100–₹500).

Step 4: Update Bank and PAN Details

Ensure your new account is linked to your bank and PAN to avoid payment failures.

Tax Implications of Demat Account Charges

Demat account fees are tax-deductible under Section 80C if they’re part of your investment expenses. Here’s how it works:

• AMC fees: Deductible as a cost of holding securities.
• Brokerage fees: Deductible as a trading expense (but only if you file ITR with business income).
• STT and other taxes: Not deductible (they’re transaction taxes).

For salaried individuals, AMC fees can reduce taxable income if claimed under Section 80C. Consult a chartered accountant for details.

Expert Tips to Reduce Demat Account Costs

“Always negotiate AMC with your broker if you have a portfolio over ₹10 lakh. Many brokers offer discounts to retain high-net-worth clients.” — SEBI Registered Investment Advisor

“For passive investors, zero-AMC brokers like Zerodha or Groww are the best choice. For active traders, flat-fee models save the most.” — Financial Planner, Mumbai

Top 5 Cost-Saving Strategies

1. Use flat-fee brokers if you trade more than 10 times/month.
2. Opt for AMC waivers by meeting trading thresholds.
3. Disable SMS alerts to avoid ₹15–₹30/month charges.
4. Close unused accounts to avoid dormancy fees.
5. Compare brokers annually to ensure you’re not overpaying.

Demat Account Charges for NRIs in 2026

NRIs face different fee structures due to RBI regulations:

AMC Charges

• Zerodha: ₹300/year (same as resident Indians).
• ICICI Direct: ₹1,500/year (higher due to NRI-specific services).
• HDFC Securities: ₹2,000/year.

Brokerage Fees

• Flat fee: ₹20–₹100 per trade (varies by broker).
• Percentage-based: 0.1%–0.5% of trade value.

Additional Fees

• Custodian fees: ₹500–₹2,000/year (charged by banks like HDFC, ICICI).
• Remittance charges: ₹500–₹1,000 per outward remittance.
• PAN card verification: ₹500–₹1,000 (one-time).

NRIs should compare custodian fees carefully, as they can add up to ₹10,000+ annually for large portfolios.

Future of Demat Account Charges: What to Expect by 2027

SEBI and RBI are pushing for lower costs to boost retail participation. Here’s what’s likely to change:

1. Zero-AMC Dominance

More brokers (e.g., Groww, Paytm Money) will offer zero-AMC accounts to attract customers. Traditional brokers may follow suit.

2. Flat-Fee Brokerage Standardization

SEBI may cap brokerage fees at ₹10–₹15 per trade to protect retail investors.

3. Hidden Fee Crackdown

SEBI is scrutinizing brokers for hidden charges like inactivity fees and SMS alerts. Expect stricter disclosure rules.

4. AI-Powered Fee Optimization

Brokers may use AI to suggest fee-saving strategies (e.g., switching to flat-fee for high-volume traders).

5. Blockchain for Lower Costs

Some brokers are exploring blockchain to reduce transaction fees (e.g., blockchain stocks).

Common Mistakes to Avoid When Comparing Demat Charges

Here’s what investors often get wrong:

1. Ignoring Hidden Fees

Always ask for a complete fee schedule, not just AMC and brokerage. Hidden fees can cost ₹5,000+ annually.

2. Choosing a Broker Based Only on Ads

Brokers like Zerodha and Upstox spend heavily on marketing. Don’t assume they’re the cheapest—compare all fees.

3. Not Calculating Total Costs

Use this formula to compare brokers:

Total Annual Cost = (AMC) + (Brokerage x Trades/year) + (Hidden Fees)

4. Forgetting to Negotiate

If you have a large portfolio (₹50 lakh+), ask your broker for a discount on AMC or brokerage.

5. Not Reviewing Fees Annually

Broker fees change frequently. Review your costs every 6–12 months to ensure you’re not overpaying.

Demat Account Charges Calculator: Estimate Your Costs

Use this simple calculator to estimate your annual Demat account costs:

• Average monthly trades: _____
• Average trade value: ₹_____
• Broker chosen: _____

Estimated Annual Cost = AMC + (Brokerage x Trades/year) + Hidden Fees

For example, if you trade 20 times/month with an average trade value of ₹30,000:

• Zerodha: ₹300 (AMC) + (₹20 x 240) = ₹5,100/year.
• ICICI Direct: ₹700 (AMC) + (0.55% x ₹30,000 x 240) = ₹40,300/year.

Use the FD Calculator to see how these fees impact your long-term returns.

FAQs: Your Top Demat Account Charges Questions Answered