Demat Account Charges Explained: What You Really Pay in 2026

"Zero brokerage" does not mean zero cost. Several small charges apply to every trade. Here is every demat and trading charge explained for 2026, so you know exactly what you pay.

The charges, decoded

• Brokerage - the broker's fee. Often Rs.0 on delivery, Rs.20/order on intraday and F&O.
• AMC - annual maintenance for the demat account (Rs.0-300).
• DP charges - a small flat fee (~Rs.13-25) each time you sell from your demat.
• STT - Securities Transaction Tax, set by the government.
• Exchange + SEBI fees - tiny per-trade charges.
• GST - 18% on brokerage and some fees.
• Stamp duty - small, on buys.

Why your contract note differs from the price

When you buy Rs.10,000 of shares, the total debited is slightly more because of STT, GST and stamp duty. On delivery with a zero-brokerage broker these statutory charges are just a few rupees.

How to keep costs low

Use a zero-brokerage delivery broker, trade less frequently, and avoid call-and-trade (which adds a fee). Check the contract note after each trade.

Why “zero brokerage” is never truly zero

Discount brokers advertise free delivery, and on their own fee that is true — but a handful of government and exchange charges apply to every single trade, on every broker. These are small, but they explain why the amount debited when you buy is always a little more than the share price, and why selling costs a few rupees even with a zero-brokerage broker. Understanding each line keeps you from being surprised by your contract note.

Every charge, decoded

• Brokerage: the broker’s own fee — often ₹0 on delivery and ₹20 per order on intraday and F&O.
• AMC: an annual maintenance charge for the demat account, ranging from ₹0 to about ₹300.
• DP charges: a small flat fee (about ₹13–₹25) the depository levies each time you sell shares from your demat.
• STT: Securities Transaction Tax, a government levy on every buy and sell, deducted automatically.
• Exchange & SEBI fees: tiny per-trade charges from the NSE/BSE and the regulator.
• GST: 18% charged on brokerage and some of the fees above.
• Stamp duty: a small state levy applied on the buy side of each trade.

A worked example

Say you buy ₹10,000 of a stock for delivery on a zero-brokerage broker. The brokerage is ₹0, but STT, exchange and SEBI fees, GST and stamp duty together add only a few rupees — so roughly ₹10,010 leaves your account. When you later sell, you pay STT again plus a DP charge of around ₹15. On a delivery investment these statutory costs are trivial; they matter only when you trade very frequently, where they accumulate fast.

Why your contract note differs from the price

After every trade your broker issues a contract note that lists each of these charges separately. The gap between the quoted share price and the final amount is simply the sum of STT, GST, stamp duty and the small exchange fees. Reading the contract note once or twice teaches you exactly where each rupee goes — and reassures you that nothing dubious is being charged.

How active trading multiplies costs

For a long-term investor who buys and holds, these charges are negligible. For an active or intraday trader placing dozens of orders, they add up quickly: ₹20 per order plus STT, GST and exchange fees on each leg can quietly consume a meaningful slice of profits. This is one more reason beginners should favour delivery investing over frequent trading — lower costs, lower taxes and far less stress.

Do not confuse charges with taxes on gains

The fees above are transaction costs; they are separate from the tax you pay on profits. When you sell shares or equity funds at a profit, short-term capital gains (held under a year) and long-term capital gains (held over a year) are taxed at their respective rates, with long-term gains enjoying an annual exemption. Keep your contract notes and your broker’s tax P&L statement handy at filing time — they make computing capital gains straightforward.

How to keep your costs low

• Use a zero-brokerage delivery broker for long-term investing.
• Trade less often — every order carries fees and taxes.
• Avoid call-and-trade, which adds an extra per-order charge.
• Pick a broker with zero AMC if your account will sit idle between investments.
• Check the contract note after each trade so nothing surprises you.

The bottom line

“Zero brokerage” saves you the biggest fee, but STT, GST, stamp duty, exchange fees and DP charges still apply on every broker because they are set by the government and exchanges, not the broker. They are tiny for a long-term investor and only add up if you trade heavily. Know the line items, favour delivery over frequent trading, and your investing costs will stay among the lowest in the world.

A quick comparison of broker AMC

The one recurring charge you can control is the annual maintenance fee, and it varies more than people expect. Groww and Dhan charge zero AMC, so an idle account never bleeds money. Upstox charges around ₹150 a year, Zerodha around ₹300, and full-service brokers can charge more. If you invest only occasionally or hold a long-term portfolio you rarely touch, a zero-AMC broker is the obvious pick. If you trade actively and value a broker’s tools and reports, a small AMC is easily worth it. Either way, know the figure before you open, because it is the one cost that recurs whether or not you trade.

Compare broker charges on our demat page.