Thursday, June 7, 2018

Kotak Free Intraday Trading – What you should know?

In this age of disruptions companies are differentiating themselves by offering products and service to creates sticky customers. Across customer facing industries there are companies which are taking on competition by offering more value for the buck. As a consumer, online retail & telecom comes at the top of the mind where disruption has brought bonanza for customers.

There are disruptions happening across financial services industry as well. Brokerage industry, for instance, is facing disruptions from discount brokers and off course full service brokers are responding with innovative offerings. One such recent offering is FreeIntraday Trading (FIT) from Kotak Securities which has waived off brokerage on non-delivery based trades for retail clients.

So how significant is this?
Considering the fact that an average intraday self-trader spends 220 rupees on brokerage per day and approx. 5000 per month only on cash segment, the savings are significant if you add-up the total intraday brokerage paid in all segments put together (cash, futures, options).

What is the product concept?
Free Intraday Trading for self-trading customers every day. Zero brokerage on all intraday trades in Cash, Futures and Options segment. All that a customer has to do is pay 999/- for the year and get all intraday trades free of brokerage.

What are the key features?
  1. Client can subscribe to FIT by paying an annual subscription fees and can do Intraday trading of any value during the year. (Only Nominal brokerage of 1 paisa per scrip traded will be levied)
  2. The product is valid only for self-generated intraday order in Cash & Equity Derivative segments. A Self-generated intraday order is one in which both the buy and sell leg order are placed by the client directly on the trading platform provided by Kotak Securities Ltd. No brokerage charges irrespective of size of trade, platform or market segment.
  3. Get unlimited access to equity and derivatives reports by their award-winning Research team.
  4. Existing customers can seamlessly sign up for FIT by getting in touch with the Customer Care team.
  5. Trade on the go on mobile phone using Kotak StockTrader app.
  6. You can also place orders using Keat Pro X software that can be downloaded on your laptop or PC.
  7. All statutory charges would be applicable.
  8. Intraday trades placed through a dealer will not be covered under FIT.
  9. FIT is not available for currency and commodity trades.
  10. Delivery brokerage would be charged as agreed with the client.

So should you consider opening an FIT a/c with Kotak Securities?
It depends on the type of trader you are. Since Kotak FIT is strictly for their retail clients, it might provide them with a slight edge on cost side over other intraday traders who are paying regular brokerage charges.

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