I dont understand demat costs. pls help.

[saditya]

Hi,
I am a new entrant to the world of investing, and have a few queries.

from the forums and websites of brokers, i figured i need 2 things to get started - a demat account and an online trading account. apologise if the question is repeated -- i did scan the forums for a proper answer, but it has eluded me.

ive also seemed to figure the online trading charges, e.g. geojit charges 0.30 for delivery, which, correct me if i am wrong means -> if i bought shares worth Rs. 1000, would translate to Rs. 3 brokerage charges each on buy and sell. also, it appears that an online trading account has yearly maintenance charges (Rs. 300, or whatever, depending on broker)

I just cant seem to understand the demat charges.

Are there any pages, links, that describe it in baby language? or perhaps, someone here wants to help out?

I'm faintly guessing that upon every sell (and not buy), I've pay something like Rs. 8 or 12 to the depository(?)..but this is just a faint guess, and I need to be sure how it works. And are there yearly charges for this too?

Once again, thanks in advance!!

aditya

 

[krishanfriendz]

Hi saditya,

For investing, u should defiantly have both accounts, and there will be different charges as per company, and for only Dmat early maintenance every company is charging, and note that, there will be extra charges beyond brokerage which were Govt charges, the brokerage charges are for the company only, and for Dmat selling mostly every company charging Rs 12.

For further clarification plz keep posting...

I think this would giv some idea

Regards
Krishna