You may have come across Dhan advertisements on social media platforms such as Facebook, Twitter, etc. If you have found the ad impressive and want to open an account with this company, this article is for you. Below, we have shared the details you would be asked to provide for opening a Dhan account and the fees you will have to pay while using the broker for buying and selling stocks.
Zerodha and some other online brokers charge a one-time fee to open an account. Dhan won’t ask you to pay anything for opening an a/c with them.
Dhan asks users to enter their PAN and Aadhar card numbers to initiate the KYC procedure. Once you enter the same, the firm will make UIDAI send an OTP to your Aadhar-registered phone number. Once you enter the OTP, Dhan will fetch the KYC documents from DigiLocker and will verify the same automatically. There’s also a video KYC procedure wherein you are asked to turn the camera of the phone or web camera on and say the words Dhan displays. You may be asked to say your name and the OTP displayed by the application. You will also be asked to sign on a paper and upload the signature’s photo. Thus, you must be ready with the same.
If you want to buy or sell options, or futures, you will have to submit proof of income. Some of the accepted documents are Form 16, the bank statement for the last six months, etc.
The documents are verified quickly by the Dhan customer support team. Once you have completed all steps required to open a demat account, your data will be sent to exchanges. Your a/c will be ready for trading once your information is registered with the NSE and BSE. This can take up to 3 days.
MTF aka Margin Trading Facility is readily available to the users. While placing an order, you must choose the MTF option. Dhan can fund your share buying activity up to four times. The firm won’t charge you any fee for activating MTF as this feature is enabled for each account.
On leading brokers such as ICICI Direct, or Kotak Securities, you will have to purchase a plan that offers the feature “MTF”. Kotak charges 2499 Rs for the same. Margin Trading Facility is available to the subscribers of the ICICI Direct Prime plan. While KS charges an interest of 10.99% per annum. The interest rate charged to the MTF feature users of the ICICI Direct prime plan is 18.0 to 8.99%.
Dhan will charge an interest of 0.0438% every day from the day the shares are delivered to your demat account if you purchase shares and pledge them during the pledging hours (on the same day). If you don’t pledge the scrips, your position would be squared off automatically on the 7th day.
The Dhan charges Rs 20 brokerage per order. It doesn’t matter what instrument you’re trading. If you purchase a scrip and don’t sell it before 3.30 PM, you won’t be charged brokerage if you sell the scrip on the next day. Apart from 20 Rs, these are the charges you will pay each time you purchase or sell an instrument:
- STT, GST.
- SEBI turnover fees, stamp duty.
In addition to one-time account opening fees, some online brokers charge AMC. Companies that offer a three-in-one trading account will deduct the AMC from your linked bank account automatically on the due date. AMC won’t be levied by Dhan.
When your account is ready for investing, you will get an email from the company. You can also check the status by signing into your account.
Should you create an account with Dhan? Absolutely! If you’re looking for an alternative to your existing broker or you want to invest your hard-earned money in the stock market or you want to trade, open a demat account with this firm.
