If you trade or invest using platforms likeGrowworZerodha, you’ve probably heard aboutbrokerage fees— the charge brokers apply for executing your buy or sell orders. But there’s another cost that’s easy to miss:DP charges(Depository Participant charges).
What are DP charges?When you sell shares from yourdemat account, your broker’s depository participant (DP) facilitates the transfer of those securities to the clearing corporation for settlement. This involves debiting your demat account, andthat debit triggers a DP charge— separate from brokerage.
DP charges usually include a small fee from the depository (e.g., CDSL or NSDL) plus a fee from your broker. For example,Groww charges around ₹20 plus GSTper sell transaction for most investors, whileZerodha charges around ₹13.50 plus GSTper applicable transaction.
Why they matter:For occasional traders, these fees might seem negligible. But for active traders or those selling large volumes or multiple stocks,DP charges add up over timeand can offset the benefits of low brokerage plans. Some brokers even apply the DP chargeon every sell order, which can make a big difference if you sell frequently.
Moreover, not all platforms handle DP fees the same way:
Some charge DP feesper sell order, so multiple sell orders incur multiple fees.
Others may apply DP chargesonce per stock per dayno matter how many times you sell it.
Bottom line:Don’t let low quoted brokerage alone be the reason you choose a broker. Look at thecomplete fee structure— including DP charges — especially if you trade frequently. Knowing these costs helps you estimate yourtrue investment expensesand protect your profits.
