No, Zerodha does not charge ₹200 every year. Instead, Zerodha levies an annual charge of ₹300 for Demat Account Annual Maintenance Charges (AMC).
Understanding Zerodha's Annual Maintenance Charges (AMC)
The annual charge collected by Zerodha is primarily for maintaining your Demat account. A Demat account is essential for holding securities like shares, mutual funds, and bonds in an electronic format. The annual maintenance charge ensures the smooth operation and upkeep of your electronic holdings.
Here's a breakdown of the key charges associated with a Zerodha Demat account:
| Charge Type | Amount/Fee | Frequency/Condition |
|---|---|---|
| Demat Account Annual Maintenance (AMC) | ₹300 + GST | Per year |
| Demat Debit Transaction (Market Trades) | ₹13.5 + GST | Per debit transaction (for market sales) |
| Demat Debit Transaction (Off-Market Trades) | 0.03% of transaction value or ₹25, whichever is higher + GST | Per debit transaction (for off-market transfers) |
Additional Transaction Fees
Beyond the annual maintenance charge, Zerodha also charges a fee for debit transactions from your Demat account. These fees apply when you sell shares from your holdings (market trades) or transfer shares out of your account without a market transaction (off-market trades).
- For Market Trades: When you sell shares on the stock exchange, a fee of ₹13.5 + GST is applied per debit transaction.
- For Off-Market Trades: If you transfer shares directly from your Demat account to another Demat account (e.g., for gift transfers, unlisted shares, or pledges), the charge is 0.03% of the transaction value or ₹25, whichever is higher, plus GST, per debit transaction.
Why Are These Charges Levied?
These charges are standard across the brokerage industry. The Annual Maintenance Charge (AMC) covers the cost of maintaining your electronic Demat account, record-keeping, and ensuring the security of your holdings. The debit transaction charges compensate the depository participant (DP) for facilitating the transfer of securities out of your Demat account, whether due to a sale or an off-market transfer.
