Is Zerodha AMC free? (2024)

How to avoid AMC charges in Zerodha?

AMC charges are charged only on a demat account. As far as you are using Zerodha Kite to do trade, i.e. open only a trading account or Zerodha commodity account then you don't have to pay any AMC fees and thus can avoid these charges.

Account Maintenance Charge (renamed from annual maintenance charge) is the charge to maintain the demat account with Zerodha. AMC is charged per quarter, i.e., every 90 days starting from the account opening date, and is deducted from the Zerodha account.

You will receive tons of reminders via SMS, phone calls, and Email from your broker. After some time your account of Demat will be considered as a dormant Demat account (an inactive account). That means that you won't be able to do any transactions from this account until you reactivate it once again.

In an AMC SIP, the minimum investment amount is decided by the AMC. An AMC SIP cannot be modified, paused or stepped up since the AMC SIP is not created internally in Zerodha's system. AMC SIPs can be deleted or cancelled only 2 days prior to the SIPs next instalment date.

Zerodha vs Upstox: Exposure/Leverage (Margin)

Zerodha margin for intraday trading is up to 20% of the trade value (5x leverage) based on the stock whereas the Upstox margin for intraday cash is also up to 20% of the trade value (5x leverage) based on the stock.

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Zerodha Demat & Trading Account Opening Charges:

The Annual Maintenance charges are charged once per year. Interestingly there is no AMC for trading account but they charge Rs 300 for demat account. Also, the trading platforms and the mobile app is not charged.

Currently, 70% of Zerodha's revenue comes from broking and trading fees, 15% from treasury (the company's own funds invested mostly in debt and fixed deposits), float (unused customer funds) generates 3-3.5% as they are parked as short-term FDs with clearing corporation and, and the remainder (15%) comprises account ...

If any such unfortunate event were to occur, you need to apply to the Investor Protection Fund (IPF), set up by SEBI, to provide compensation. You need to file a claim for compensation within three years per SEBI rules to become eligible for such payment.

Why do brokers charge AMC?

AMC is charged to maintain the efficiency of the services that you receive from your broker. It includes buying and selling of securities, access to reports and other data.

The stockbrokers are just the agents of depositories. Your stocks are actually held by central depositories and not by the depository participants (brokers). Therefore, even if something didn't work out well with Zerodha, your stocks in the demat account are safely intact with CDSL.

Upstox offer same flat rate brokerage for trading at BSE, NSE and MCX. It charges an account opening fee of Rs 249. The demat account AMC is free.

Demat Account Annual Maintenance Charges

The Brokerage Houses and Depository Participant (DPS) levy a minimal annual maintenance fee or the folio maintenance fee for their services. The AMC fee amount is generally between INR 300 to INR 900. You can pay the fee as a one-time payment or quarterly.

The charge is ₹13.50 (₹5.50 by CDSL and ₹8 by Zerodha) + 18% GST and is applicable per day and per stock, regardless of the quantity sold.

All Coin sip's are just simulated SIP's. In the backend they do lumpsum investment. so AMC's consider them as lumpsum investment. Whenever AMC's stops lumpsum and not giving additional time for new SIP's then it will be a problem.

It helps you invest directly with the asset management company (AMC). You must invest in direct mutual funds compared to regular plans as they have a lower expense ratio. The AMC saves on commission paid to mutual fund distributors and brokers and passes on the benefit of a lower cost to investors.

When you purchase through a distributor, it has an upfront commission of upto 1.5% on your investment and a trail commission of upto 1.5% every year for as long as you are invested in the fund, says Zerodha. "For an informed investor, buying mutual funds directly is the best option.

Both Upstox and Zerodha are popular online discount brokers. Upstox is better than Zerodha in following ways: Upstox provides access to 3rd party trading software like Dartstock, NEST Trader and Fox Trader for advance traders. Zerodha only offers Kite as a trading platform.

Zerodha alternatives recommendations

Sharekhan is recommended for traders and investors focusing on the indian market. Interactive Brokers is recommended for traders looking for broad market access and a professional trading environment.

Why do people prefer Zerodha?

Zerodha is among the largest discount brokers in India. It offers a wide range of products and provides free equity delivery. Zerodha is a great choice for beginner investors because of its easy-to-use trading platforms.

Subscribing Directly with AMC

The standard monthly cost of AMC+ is $8.99 (plus tax). The standard price for the annual plan is $83.88 (plus tax), which averages to $6.99 monthly.

You can add a maximum of Rs 1 Cr using internet banking(using the payment gateway) and Rs 2 Lakhs using UPI from Kite's Add Funds page in a single transaction. However, depending on the bank you use and the limit prescribed by them, this will differ for each account.

A Zerodha Trader has to file ITR based on the income they have from trading in equity, mutual funds, or derivatives. Zerodha provides a Tax P&L Report to all its traders aggregating the trading transactions done during the financial year.

Is Zerodha safe for the long term investment? Yes, Zerodha is as safe as any other stock broker in India. Zerodha is a genuine and trusted stock broker.

According to the NSE, Zerodha's daily average turnover is ₹2000 crores.

It was started by Nithin Kamath in 2010, which was later joined by his brother Nikhil Kamath. With more than 12 million customers, Zerodha was estimated at US $2 billion (INR 16,415 crores) in 2022. India's first discount brokerage service, Zerodha allows users a unified family portfolio.

There is no upper limit to the amount of money that can be withdrawn from the trading account. Withdrawal limit is subject to availability of withdrawable balance in the trading account. To learn more, see What is the withdrawable balance?

Why can't I withdraw all money from Zerodha?

Withdrawal requests can be rejected due to the following reasons: Funds from trades are yet to be settled. The funds from equity and F&O trades are not settled instantly. Exchanges require T+1 day to settle funds from selling equities and F&O trades to the Zerodha account before they can be withdrawn.

If the funds are transferred using NEFT/IMPS/RTGS the following can be done: Add the unlinked bank account as a secondary account, and create a ticket mentioning the transaction details. The funds will be credited to the Zerodha trading account within 24 hours.

There is no minimum balance required to keep the Zerodha account active. The trading account will be considered inactive or dormant if there is no activity for 12 consecutive months. See, Why did Zerodha send an email stating the account is inactive? The demat account however remains active indefinitely.

Yes. Non-Resident Indians can trade in futures and options provided they have mapped a CP (Custodial Participant) to their NRO account. Zerodha has a partnership with Orbis Financials for custodial services.

Few disadvantages of trading in options with Zerodha include Rs 50 per order Call & Trade charges, Rs 20 auto squared-off charges, and Rs 300 per year demat AMC charge. Note that a demat account is mandatory even if you are training only in options.

AMC Free Demat Account

Some brokers, like Upstox, offer a free AMC Demat Account. That means customers won't be charged for maintaining this account. However, some conditions may apply. If a person wants to open a free Demat account with no annual charges, Upstox is the right stock broker to count on.

Zero AMC for lifetime

This fee is commonly known as Account Maintenance Charges (AMC) and can range anywhere from Rs. 500 to Rs. 1,000 per year. However, if you open a demat account with Motilal Oswal, these charges will be waived off and you get to enjoy zero AMC for your entire lifetime.

There is no Annual maintenance charges in FYERS.

Is Upstox AMC free?

There are no annual maintenance charges or AMC in Upstox.

Steps to avoid DP Charges at Zerodha

There are no DP charges for intraday and BTST trades as the shares don't get deposited in your demat account. There are no DP charges when you trade in the derivatives (F&O) segment. Same as intra-day, there is no demat transaction in the case of F&O trading.

To avoid authorising securities using CDSL TPIN and OTP every time a sell request is placed, clients can submit the Demat Debit and Pledge Instruction (DDPI).

1. Are AMC charges compulsory? Yes, AMC charges are typically compulsory for all Demat account holders. These fees cover the costs incurred by the DP or broker in maintaining your Demat account and providing services.

Yes but it differs from broker to broker. Some brokers have annual maintainence and some dont.

Consequences in case of Non-payment of AMC

If you still don't pay the AMC then after some time, they will make your Demat Account inactive. In that case, you cannot perform any kind of transaction until you pay the AMC and reactivate your Demat Account.

How much AMC charges in SBI?

An Annual Maintenance Charge (AMC) is a yearly fee imposed by banks on debit cards as an ATM service fee. What is the AMC for an SBI debit card? For classic debit cards, an AMC of Rs. 125 plus GST is levied by SBI.

300 to Rs. 900 per year. Banks that offer three-in-one accounts for Demat, trading, and savings tend to charge a lower annual maintenance charge for Demat accounts because the accounts are linked. However, if the Demat account is assigned to a savings account of another bank, the AMC fees may be higher.

The scheme is run by an asset management company (AMC) that pools in money from several investors like you to invest in stocks, bonds, gold, and other securities. So, Mutual Fund schemes are a financial product that aims to grow your money. On the other hand, SIP is simply an investment technique.

Coin SIP is like every time you are placing a fresh buy order to asset management company and you can modify the amount and date of your purchase order. But in AMC SIP your SIP is registered with AMC and hence you can't modify the order instead you need to delete the sip and create a new one.

Zerodha SIP and lumpsum orders are deleted automatically on T+4 calendar day if the payment is not completed.

What is an average appraisal management company fee? Your AMC should retain about $100 to $125 per appraisal (this should include all platform fees and upload fees to other UCDP and EAD platforms), with the remainder going to the appraiser himself.

A trader must pay AMC to keep accessing the account. If you fail to make the payment, the broker will try to get in touch with you through various communication platforms to inform you about the AMC. Failure to pay them on time could lead to your demat account being marked as dormant.

As per Sebi's rules, the sponsor should have made profits in three of the preceding five years, including the fifth year. In the US, it takes about $100,000 (about 54 lakh) to set up an AMC. In Singapore, it takes about S$250,000-1 million (about 1.1-4.5 crore) to set up an AMC.

If you haven't been active on your Zerodha account for a long time or just want to discontinue using it forever, get it closed. This is because an active Zerodha account will consume Zerodha AMC charges irrespective of the usage density.

You could waive the fee if you keep a minimum daily balance or an average daily balance over the course of the month. Some checking accounts let you waive the charge if you make a minimum number of purchases with your debit card each month. Others waive it if you make a certain amount in direct deposits.

How do I avoid account maintenance fees?