What Are A Trading Account And Its Maintenance Charges?


Every investor needs to open and maintain a Demat account and trading account with a brokerage house or a depository participant to trade in the stock market. Several brokerage houses offer a trading account along with a Demat account to investors. 

They can also open a three-in-one account for further convenience. A trading account enables the investor to make buy and sell transactions on the shares and securities. He can sell the securities he holds in his Demat account and buys securities from the market that get stored electronically in his Demat account. 

An investor needs to pay certain charges to the brokerage house or the depository participant for the maintenance of his Demat accounts. The first fee that an investor pays to a broker is the account opening charge. A few leading brokers offer free account opening facilities to investors. 

An investor also must pay the annual maintenance charges to the broker. The broker may waive the annual maintenance charges for the first year of account opening. Brokers also charge a custodian fee from the investors for keeping the shares and securities of the investors safe. They also levy transaction charges on every transaction made by the investor for the buying or selling of shares. 

Read also: Skyrocket Your Wealth With These Top Share Market Investment Tips

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