Low or zero brokerage demat accounts are popular for their cost-effectiveness, but hidden fees can erode your returns if overlooked. A demat account enables electronic storage of securities, essential for trading in India. While low brokerage accounts advertise reduced trading costs, additional charges often go unnoticed.
Common hidden fees include account opening charges, annual maintenance charges (AMC), transaction fees for off-market transfers, custodian fees, and call & trade charges for phone-based orders. Some brokers also levy SMS alert charges, which can accumulate over time, especially for active traders. These fees, while small individually, can significantly impact both active and passive investors over the long term.
To mitigate these costs, choose a broker with a transparent fee structure, like Bajaj Broking, which offers clarity on charges. Regularly reviewing statements can help spot unexpected deductions, while selecting a plan aligned with your trading habits can minimise unnecessary expenses. Avoiding non-essential transactions, like frequent off-market transfers, also helps manage fees.
While low brokerage accounts are attractive, understanding and addressing hidden charges is key to maximising returns. Bajaj Broking’s zero brokerage demat account, coupled with its transparent policies, ensures a seamless and cost-effective trading experience.
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