Investment • 803 • 10
ETFs or Exchange Traded Funds are usually purchased and sold none other than on the stock exchanges. So, apart from the TER, Exchange Traded Funds also charge some amount of brokerage on these transactions. The overall cost, however, depends on the pattern in which the brokerage is specifically structured. You will need to pay the charges for the Demat account, as this is necessary to initiate trading in the ETF. Some brokers usually waive off these charges for the Demat account for active traders. If ETF is not liquid, then certain impact costs are also levied. The impact cost is the difference between the price you want to trade & the executed price. This difference generally exists when the ETF has low traded volumes.
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