Pros and cons of opening more than one Demat account

Demat account is just like bank account & hence you can open as many Demat accounts as you want. Here are some points which explain pros and cons of opening multiple Demat accounts.

Advantages:

  1. You can experiment with different brokers’ trading software without paying any extra cost.
  2. You can experience other berokers’ services.
  3. You can understand the difference between different brokers. You can do the same by comparing & finding best match Demat account broker here: FinnovationZ.com

Disadvantages:

  1. You need to pay Annual Maintenance Charge (AMC) per Demat account which vary broker to broker (Rs. 300 to 750)
  2. DP charges (Only for Delivery transaction): Usually DP charges are charged on per scrip basis. for e.g, If you buy 100 shares of Infosys for delivery (assuming DP charges of the broker are Rs. 20) you need to pay DP charges of Rs. 20. If you buy 50 shares with broker A & 50 with broker B, (assuming DP charges of both of the brokers are Rs. 20) then you need to pay separate DP charges to both the brokers i.e, Rs. 20 to broker A & Rs. 20 to broker B.
  3. You have to pay Account opening charges (if any).


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