Kotak Securities was founded in 1994 and is a subsidiary of Kotak Mahindra Bank. In this post, we look at Kotak Securities Review, Trading and Demat Account Opening Charges, Brokerage Charges in trading account and some of its salient features.
Kotak Securities is one of the fastest growing stock brokering house in India. They are the corporate member of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). It has Depository Participant with both NSDL and CDSL.
Kotak Securities is present across 359 cities with 1209+ branches, franchises and satellite offices that serve 11.95 lakh customers generating 5 lakh trades daily. As os 31st March 2016, AUM stands at 224 crores.
It offers a 3 in one account (Trading, Demat and savings account combo) for a seamless trading experience.
Product and Services offered
- Stock Brokering Services
- Portfolio Management Service
- Life Insurance
- Mutual Fund
- Car Finance
- Institutional Equities
- Investment Banking
- Kotak Mahindra International
- Kotak Private Equity
- Kotak Realty Fund
Account and Brokerage Plans
It offers a three-in-one account to its customer. It facilitates a smooth transaction between bank, trading and Demat account. It offers different account plan to its customer according to their requirement. Basic Charges for opening an account are:
For Trading Account
- Account opening fees: Rs 750
- Annual Maintenance Charges: Nil
For Demat Account
- Account opening fees: Nil
- Maintenance Charge: Rs 50 per month for resident Indians, Rs 75 per month for NRIs.
|Account Head||Rate||Minimum Payable|
|Dematerialization||Rs 50/ request and Rs. 3/ certificate||-|
|Rematerialization||Rs 10/ 100 shares||Rs 15|
|Regular ( Non- BSDA Account) Market/ off- market Transaction (Sell)|
BSDA Account Market/ off- market Transaction (Sell)
|0.04% of the value of securities ( NSDL Charges Extra)|
0.06% of the value of securities ( NSDL Charges Extra)
|Rs 27 (NSDL charges extra)
Rs 44.50 (NSDL charges extra)
|Regular Account maintenance charges||Resident- Rs 65/ month for upto 10 transactions|
Rs 50/ month for 11 to 30 debit transactions
Rs 35/ month for more than 30 debit transaction
NRI- Rs 75/ month
|Pledge Charges||0.05% of the value of securities||Rs. 30|
|Invocation of pledge||0.04% of the value of securities||Rs. 30|
|Charge for Client Master change intimation||Rs 25||-|
Types of Brokerage Account
The company offers five types of Brokerage plans for its customer. They are:
- Dynamic Brokerage
- Advanced Brokerage
- NRI Brokerage
- Fixed Brokerage
- Shubh Labh
1. Dynamic Brokerage Plan: The plan opens the gateway to the world of investing opportunities for you. The account is specifically created for those customers who are looking for a good bargain on their brokerage rates. Brokerage rates can be as low as 0.30 paisa for Delivery trade.
Benefits of Dynamic Plan
- Access to Kotak Securities Knowledge Center, that helps you learn more about stock markets and investments
- Enjoy higher returns by investing early through Easy IPO.
- Access to Kotak Securities’ research reports on the economy, select industries and companies, which help you make informed investment decisions
- Research advice via Kotak Securities SMS alerts, so you don’t miss out on important buying and selling opportunities
- Buy and sell stocks on phone using the Call and Trade facility
- Access to the top-performing mutual funds through Easy Mutual Fund
- Free news and market updates
- Low brokerage rates
- Exposure of up to 18 times your initial margin on select stocks with the Super Multiple features
- Currency Derivatives trading
- Free access to KEAT Pro X
- Special services charges.
|< 1 Lakh||0.59%|
|> 50 Lakh||0.30%|
|< 25 Lakh||0.06%|
|< 2 crore||0.07%|
|> 2 crore||0.05%|
- Options (applicable both side)
|Monthly Premium value||Intraday Brokerage||Settlement Brokerage||Minimum Brokerage Per Lot|
|Upto 4 Lakh||2.5%||2.5%||Rs. 300|
|4-11 Lakh||2.25%||2.5%||Rs 240|
|> 11 Lakh||1.8%||2.3%||Rs 180|
2. Advance Brokerage Plan: The Advance Fee account helps you earn back your brokerage charges. You pay a certain amount in advance, and slowly get it back as an when you trade. To encourage consistency in trading, the scheme provides extremely low charges during the validity period. The plan rewards your steady trading. The plan is available under different categories with Rs 5000 to Rs 2 lakh with a validity period of 12 months.
Benefits of Advance Brokerage Plans
- No Account opening charges
- Low brokerage charges
- Validity period
- Call & Trade facility
- Trade in Currency Derivatives
- IPO and MF
- Research Reports
- KEAT Pro
- After Market Orders
Brokerage & Plan Details
|Particulars||Plan A||Plan B||Plan C||Plan D|
|Advance Fees||Rs 5000 (+Service Tax)||Rs 10000 (+Service Tax)||Rs 50000 (+Service Tax)||Rs 200000 (+Service Tax)|
|Validity||12 months||12 months||12 months||12 months|
|Options||Rs 225/ Lot||Rs 225/ Lot||Rs 150/ Lot||Rs 150/ Lot|
|Currency Futures (Each Leg)||0.024% or Rs 12/ lot whichever is higher||0.020% or Rs 10/ lot whichever is higher||0.016% or Rs 8/ lot whichever is higher||0.016% or Rs 8/ lot whichever is higher|
|Currency options (Each Leg)||Rs 12||Rs 10||Rs 8||Rs 8|
3. NRI Brokerage Plans: This plan offers a very competitive price on brokerage plans and currency exchange rates by investing in India.
Charges for NRI Brokerage Plans
|Brokerage and other fees|
|Account opening charges||Rs 3750|
|Brokerage||1% of the turnover or 25 paise/ share, whichever is higher|
|Securities Transaction charges||0.1%|
|Average Quarterly Balance in Saving||Rs 10000|
|Demat Maintenance fees||Rs 75/ month|
The short-term capital gains tax will be levied @15.45% if investment sold within 1 year and average quarterly balance of Rs. 10000 should be maintained in saving bank account.
4. Fixed Brokerage Plans: The scheme is well suited for new investors in the market. Key benefits of the scheme are:
- Suited for new investors which charge fixed brokerage despite varying amount of traded volume
- Get access to Kotak Securities Knowledge Center, which helps you learn more about stock markets and investments
- Acess to trading alert via Sms and email which include buy and sell recommendation
- Easy access to the new companies listing on the stock market by investing in IPOs in the primary market.
- Take advantage of the margin trading to enhance your profits. You can get exposure of up to 18 times your initial margin on select stocks with Super Multiple
- Trade in currency derivatives through your Fixed Brokerage Kotak Gateway account and mutual funds through Easy Mutual Fund
|Square off (both sides)||0.49%|
|Futures (both sides)||0.049%|
|Options||Rs 300/ lot|
|Minimum Brokerage||4 paise for delivery and 3 paise for intraday and future orders|
5. Shubh Trade: The scheme is specially designed for festive season for specifically trading in the Derivatives segment. Some features of the scheme are:
- Flat brokerage of Rs. 21 per executed lot in Equity Options trading
- All you need to do is bring a minimum cash margin of Rs. 1Lac
- 100% cash margin is mandatory for trading in derivative segment. While for trading in Cash segment, we will accept margin in the form of cash, securities and any other acceptable form of margin.
- Shubh Trade is available for trades placed on the online platform only
- Call & Trade facility will be charged at Rs. 20 for placing trades in Options only. While for trades in Cash segment and Futures, our standard pricing will be applied which is first 20 calls will be free and Rs. 20 shall be charged from the 21st call onwards
- Dealer assistance will be provided for placing trades in Cash segment only
|Cash Square off||0.049%|
|Options (both side)||Rs 21/lot|
|Futures (both side)||0.049%|
|Currency Futures (both side)||0.020% or Rs 10 whichever is higher|
|Currency options (both side)||Rs 10/ lot|
Kotak Securities offers special Intraday brokerage charges for traders. Two online plans are:
Happy Hour Trading: It offers 50% discount in brokerage for intraday trades done during Happy Hours through online mode. Basic rules are:
- Happy hours will be announced on our trading platforms.
- You will get flat 50% off on brokerage in online trading.
- Only square off trades which are placed and executed within the Happy Hours will get this offer.
Double or Quits: In this offer, a trader can avoid paying brokerage in the case of loss. With Double or Quits offer, the brokerage will be charged one paisa brokerage on Loss or Double brokerage on Profit. Few basic rules for this plans are:
- Only square off trades which are placed and executed within the Double or Quits Hours will pay one paisa brokerage or double brokerage.
- If you book a loss on your square off trade, we charge one paisa brokerage at scrip level.
- If you make a profit on your square off trade, we will charge you double brokerage.
- Double or Quits hour will be declared on our trading platforms.
- You have the choice to participate in this product any day, at your discretion.
Platforms Available for Trading
- Website: Can access to the trading platform through any web browser. Will have to log in and avail host of trading services
- KEAT ProX: It is a free, simple and high-speed web-based trading platform that gives you control over your portfolio, allows you to track the markets live, as well as buy and sell securities online, in real time. KEAT ProX deals with scrips on the BSE, NSE and NSE Currency markets.
- Kotak Stock Trader: It is a mobile-based application which allows you to trade from your mobile phone anywhere, anytime
- Fastlane: It allows better trading experience from workplace and doesn’t require application to install and features are similar to KEAT ProX
- Xtralite: It is an extra-light, super-fast trading website specially designed for trading using slow internet connections.
- Dealer-Assisted Trading: Dealer helps in carrying with your investment transaction with investment advice and execution of the trade.
- Call & Trade: It allows you to trade when you don’t have access to the computer through dealer and relationship manager.
Demo of various trading software:
Kotak Stock Trader and KEAT Pro X
Demo for placing an order
Users can browse more informational and educational videos from youtube .
Process and Documentation Required
One can open an account in Kotak securities in three ways:
- Through their customer help desk toll-free no. : 1800-222-299, 1800-209-9191
- Get yourself registered through online application form available in website(https://www.kotaksecurities.com/)
- By visiting nearest branch or sub-brokers.
- 2 Photograph
- One photograph of nominee you wish to make (optional)
- Xerox self-attested copy of PAN card
- Xerox self-attested copy of address proof ( Passport, Aadhar card, Voter ID, lease agreement etc)
- One Canceled Blank Cheque
Advantages and Disadvantages in a nutshell
- It provides very customized service for its customer through three-in-one account and two-in-one account
- All financial products and services are available under one roof
- Monthly and weekly Research reports for its customer and flexibility of choosing trading platform
- High brokerage charges and hidden charges
- In mutual fund, direct funds are not available
- Commodity trading is not available
Comparison with other brokerages
|ICICI Direct||Share Khan||Zerodha|
|Service Type||Full Service||Full Service||Full Service||Discount Broker|
|Brokerage||0.05-0.5%||0.05 – 0.55%||0.1%-0.5%||Rs. 20|
|Account Opening Cost||Rs 750||Rs 975 for 3-in-1 account||Rs. 500||Rs 200 (couriered)
Rs 100 (form printed)
|Margins (Equity)||Intraday- 15 times|
Delivery- 3 times
|Intraday- 25 times|
Delivery- 5 times
|Intraday- 10 times|
Delivery- 5 times
|Intraday- 20 times
|Exchange Enabled||NSE, BSE, MCX, NCDEX and MCX-SX||NSE and BSE||NSE, BSE, MCX, NCDEX and MCX-SX||NSE, BSE, MCX, and MCX-SX|
Kotak Securities is a reputed and user-friendly stock broking company. It offers its customer a flexible system through various brokerage plans and trading platform. From the cost perspective, the services offered are bit costly compared to discount brokers but the weekly and monthly research reports generated for customers help them to make take trading and investment decisions more effectively.
Frequently Asked Question (FAQs)
A. Once you fill up the form on the website and make the payment of account opening fee you will receive the account opening kit at your correspondence address. You should receive the account opening kit in 3-4 working days from the time your payment is realized.
On receiving the form you can submit it to Kotak Securities along with necessary KYC documents. It generally takes 7 working days to activate the account from our side after receiving the complete form.
Q. What documents would I receive once the account is opened?
A. You will receive a welcome kit containing the following:
- A welcome letter containing details of your account with us
- A booklet titled “Road Guide” – a detailed guide on how to activate your account and start trading
- A CD that will help you install K.E.A.T.
- A Personal Identification Number – a unique numeric code for one-time use for account activation
You will also receive the initial password on your email id registered with us.
Q. What is the least amount of margin that I need to pay Kotak Securities to start trading?
A. You can start trading by placing a minimum margin of:
- Rs.20,000 in the Gateway Account
- Rs. 5,00,000 in the Value Account
- Rs. 1,000,000 in the Privilege Account
- 20,000 in the Freeway Account
- 20,000 in the High Trader Account
Q. What happens in case my shares are short sold?
A. At any point of time when the shares are short sold and the same are not delivered for the pay-in to the exchange, then the shares go in for auction wherein the shares are purchased on behalf of the client in the auction market and delivered to the actual buyer.
To carry on the auction procedure, 150% of the amount shall be blocked in your account. The same shall be reversed subject to the debit of the actual auction charges.
We request you to view the details in your ledger. The path is as follows:
Kotaksecurities.com — Login to Trade — My Account — View My Ledger — BSE/NSE.
Kindly note that you can also transfer the shares from some other Demat account to your Demat account with Kotak in order to adjust the shares for the pay-in. However, the shares should be transferred one day prior to the pay-in date before 3.30 p.m.
This minimum margin can be in the form of Cash or Stocks.
Q. What is the procedure for placing Stop Loss Orders?
A. Stop Loss order can be placed while placing a fresh order as well as a square off order.
Basics of Stop Loss Order:-
Buy: Trigger price entered should be greater than the market price and order price will be greater than the trigger price or you can keep it as market price as well.
Sell: Trigger price entered should be less than the market price and order price will be lesser than the trigger price or you can keep it as market price as well.
When the market hits the trigger price, the order is forwarded to the exchange and the same gets traded at a price between the Trigger price and the order price.
* The information displayed here are sourced from the official website of Kotak Securities Ltd.