When a discount broker advertises a "free Demat account," my immediate reaction is suspicion. Financial platforms never give away services out of charity. If they do not charge you upfront, they usually hide fees inside quarterly maintenance invoices, software platform costs, or inflated transaction levies.
I opened my Groww account to test this firsthand. Over the past twelve months, I bought delivery stocks, placed intraday trades, set up monthly mutual fund SIPs, and combed through every contract note sent to my email.
Here is the plain-English truth about what Groww actually costs, what is 100% free, and the few statutory charges that surprise most beginners.
Is Account Opening and Annual Maintenance (AMC) Truly Free?
Yes, this part of their promise is completely authentic.
Account Opening Fee: Opening your Demat and trading account costs ₹0. There are no registration setup fees.
Annual Maintenance Charges (AMC): Groww charges flat ₹0 for lifetime account maintenance. Traditional full-service brokers like ICICI Direct or HDFC Securities charge between ₹300 and ₹600 every single year simply to keep your account active, even if you never buy a share. Groww will never deduct an annual maintenance fee from your balance.
Equity Delivery vs. Intraday: My Exact Brokerage Bills
Groww follows a transparent discount brokerage model for equities:
Equity Delivery (Long-term investing): When you buy shares and hold them in your Demat account for more than one day, Groww charges ₹20 or 0.05% per executed order (whichever is lower). For example, if you buy ₹5,000 worth of shares, the brokerage is just ₹2.50. On large purchases above ₹40,000, it caps at a flat ₹20.
Equity Intraday (Day trading): If you buy and sell shares within the same market session, the fee is the same: flat ₹20 or 0.05% per order.
Futures & Options (F&O): Flat ₹20 per executed order.
Direct Mutual Funds: Completely free. Zero brokerage, zero transaction fees, and zero distributor commissions for life.
Prove the Math: What Deductions Appear on a ₹10,000 Stock Purchase?
Many beginners get confused when they invest ₹10,000 in a stock like Infosys and notice that ₹10,028 was deducted from their funds. They assume Groww charged a hidden fee.
To show you exactly where those extra ₹28 go, here is the official contract note breakdown from my recent purchase:
Charge Type | Who Collects It | Amount on ₹10,000 Delivery Buy | Purpose |
Groww Brokerage | Groww Broker | ₹5.00 (0.05%) | Platform service fee |
Securities Transaction Tax (STT) | Central Government of India | ₹10.00 (0.10%) | Mandatory tax on equity buys |
Exchange Transaction Charges | NSE / BSE | ₹0.35 | Stock exchange handling |
SEBI Turnover Fee | SEBI Regulatory Body | ₹0.01 | Regulatory oversight levy |
Stamp Duty | State Government | ₹1.50 (0.015%) | Legal transfer duty |
Goods & Services Tax (GST) | Central & State Government | ₹0.96 (18% on brokerage & exchange fees) | Standard indirect tax |
Total Deductions on ₹10,000 | — | ₹17.82 Total | Groww Kept Only ₹5.00 |
Out of ₹17.82 in total costs, Groww took just ₹5.00. The remaining ₹12.82 went directly to the government and the stock exchange. Every broker in India is legally required to collect these taxes.
The One Charge Most People Miss: DP Charges on Selling
There is one specific fee that catches new investors off guard because it never shows up when you buy: the Depository Participant (DP) charge.
When you sell shares from your Demat account, Central Depository Services Limited (CDSL) and Groww charge a flat ₹13.50 + GST (around ₹15.93 total) per company per day.
If you sell 100 shares of Tata Motors in one day, you pay ₹15.93.
If you sell 1 share of Tata Motors, you still pay ₹15.93.
Because this fee is flat per company rather than per share, avoid selling tiny amounts like a single ₹50 stock, or the DP charge will eat your profit.
How to Lock In Your Free Demat Account with Code YR9QXQ
If you are opening your first investment account, make sure you activate your profile through the official referral channel to ensure your account opening and lifetime zero AMC are properly tagged.
Check out our step-by-step Groww referral code and link activation guide to apply code YR9QXQ automatically and save over ₹500 in onboarding charges.
Frequently Asked Questions (FAQ)
Does Groww charge any monthly or yearly maintenance fees?
No. Groww charges flat ₹0 annual maintenance charges (AMC) for lifetime Demat account holding.
Are direct mutual funds really 100% free on Groww?
Yes. Groww charges zero transaction fees and zero distributor commissions on direct mutual funds.
What is the maximum brokerage charge on Groww?
The maximum brokerage on equity delivery, intraday, and F&O trades is capped at flat ₹20 per executed order.