Detailed Kotak Securities Trade Free Plan Review: Kotak Securities on 19th November 2020 announced the launch of a new set of trading plans with zero brokerage for intraday trading across segments, a first of its kind plan in India. It is also known as Free Intraday Trading (FIT) plan.
As a new-age investor, you should always do proper market research before selecting a trusted and reliable brokerage stockbroker. While selecting the best stockbroker, you must compare the different brokerage plans.
It is also important to know the hidden charges because they can reduce your profits. KSL part of Kotak Mahindra Bank Ltd. is offering zero brokerage on intraday trades and Rs. 20 per order for all other future & options (F&O) trades including equity, commodity, and currency.
Quick Note: If you want to open a FREE Demat account with Kotak Securities, here’s the direct link!
Kotak Securities Trade Free Plan Review – Key Features
Kotak Securities also stated that it would offer MIS and super multiple (cover order) at Rs 20 per order. Key features of the Trade Free Plan, Kotak are:
- It offers ZERO Brokerage on Intraday Trades
- For all other F&O trades, the brokerage is charged at Rs.20 per order
- MIS & Super Multiple (Cover Order) at also charged at just Rs.20 per order
- Trade FREE Plan offers Margin Trading Facility
- Allows clients to use stocks as margin instead of cash margin.
- Zero hidden charges.
- Provide customer satisfaction guarantee under the Trade Free Plan, which means that if the customer is not satisfied with the services then they can within one month of account opening ask for a refund of fees and brokerage.
Read the detailed Kotak Securities review to get more insights.
Kotak Securities Trade Free Plan Review – Charges
Account Opening and Kotak Brokerage Charges:
| Charge Type | Amount |
| Initial Margin | Free |
| Account Opening Fee (includes GST) | Free |
| Intraday (All Segments) | Free |
| Delivery – Equity, Commodity | 0.25% |
| Margin Intraday Square off (MIS) & Super Multiple | ₹20 / Per Order |
| Stock used as Margin for Derivative Trades | 0.025% per day |
| Outstanding Debit Balance on Margin Trading Facility (MTF) | 0.04% per day |
| Other Debit Balance | 0.05% per day |
OPEN A FREE DEMAT ACCOUNT AT KOTAK SECURITIES
You can read this article to know the exact steps to open demat account with kotak securities trade free plan here.
Taxes and Regulatory Charges
Particular | Equity Delivery | Equity Intraday | Equity Futures | Equity Options | Currency Futures | Currency Options | Commodity Futures | Commodity Options |
|---|---|---|---|---|---|---|---|---|
| STT/CTT Charges (As per Exchange) | 0.1% (both sides) | 0.025% (sell side) | 0.01% (sell side) | 0.05% (sell side) | Nil | Nil | 0.01% (Sell side) | 0.05% (sell side) |
| Transaction charges | NSE: 0.00325% BSE: 0.00325% | NSE: 0.00325% BSE: 0.00325% | NSE: 0.0019% | NSE: 0.05% on Premium | NSE: 0.0009%, BSE: 0.00022% | NSE: 0.035%, BSE: 0.001% | MCX (for Agri & Non Agri): 0.0026% NCDEX: 0.006% | Waived off by Exchange |
| Stamp charges (As per State) | 0.015% or ₹1500 / crore on buy side | 0.003% or ₹300 / crore on buy side | 0.002% or ₹200 / crore on buy side | 0.003% or ₹300 / crore on buy side | 0.0001% or ₹10 / crore on buy side | 0.0001% or ₹10 / crore on buy side | 0.002% or ₹200 / crore on buy side | 0.003% or ₹300 / crore on buy side |
| Investor Protection Fund | 0.00001% | Nil | 0.0001% | 0.001% | 0.00005% | 0.002% | Nil | Nil |
Quick Read
Demat Charges:
| Charge Type | Amount |
| Dematerialisation | ₹150 per certificate + ₹50 per request (courier charges) |
| Rematerialisation | ₹10 for 100 securities (shares, bonds, mutual fund units, etc.; subject to a minimum of ₹15) |
| Credit transactions (Buy) | Nil |
| Debit transactions (Sell) | 0.04% of the value of securities (subject to a minimum of ₹20) |
| Annual Maintenance Charges (AMC) | ₹50 per month |
| Charges for Client Master Report changes (Applicable for Email/ Address/ Mobile/ Bank) | ₹50 per modification request |
| Delivery Instruction Slip Kotak Securities (DIS) – Reissuance | ₹100 per DIS booklet + ₹50 courier charges |
| Request, Invocation, Release (Un-pledge) | 1.5% Per month (levied every 15 days) |
| Pledge Charges (For the non-margin purpose) | |
| Request | 0.05% of the value of securities (subject to a minimum of ₹30) |
| Invocation | 0.05% of the value of securities (subject to a minimum of ₹30) |
Other Charges
| Charge Type | Amount |
| Auction Charges | On actuals (subject to a minimum of ₹20 per auction) |
| Cheque Bounce Charges | ₹350 + Bank Charges |
| Research Call on SMS | As per website |
| Password Printing and Dispatch Charges | ₹100 per request + ₹50 courier charges |
| Product Change Charges | ₹100 |
| Contract Note (Digital) | Free |
| Duplicate Hard Copy Contract Note on Client Request | ₹20 per contract note + ₹50 courier charges |
| Digital Copy (Email) Contract Note for Current/Previous Financial Year | Free |
| Digital Copy (Email) Contract Note for years prior to Previous Financial Year | ₹200 per year per request |
| Inter-Settlement Charges | 0.04% of the transaction value (subject to a minimum of ₹20) |
Benefits of Kotak FIT Plan
- Zero Brokerage on Intraday Trading
- Flat brokerage of Rs 20/per order of F&O Trades
- Use of Stocks as Margin (Instead of Cash Margin)
- Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.
- Multiple trading platforms to fulfill almost all customer requirements.
- In-depth market Market Research Reports
Customer research initiated by Kotak Securities revealed the need for a competitive brokerage plan from a well-capitalized and reputed stockbroker in the Indian capital market. Kotak Securities’ Trade free plan bridges this gap.
This plan is applicable for trading into equity, future and options, commodity, and currency. Also, there are no hidden charges.
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Points to Note
- The choice to square off the trade is at your discretion. You can convert the order from intraday to delivery (Cash segment) or carry-forward (Futures & Options segment).
- Any request for activation received before 3:30 PM on a working day would be processed the same day. Requests received after 3:30 PM on a working day would be processed on the next working day.
Closing Thoughts
The Kotak Securities Trade Free plan or Kotak FIT plan is one of its kind of concept, however, it has been criticized to highlight a win-win situation for both the client and the stockbroker. This plan is worth it for the ones who are poised for Intraday trading ONLY and need some support in intraday research and tips.
We hope you have liked the Kotak Securities Trade Free Plan review and find it helpful. Do let us know your views in the comment section below. Open a FREE Demat account with Kotak Securities. Happing trading!
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