Kotak Securities Trade FREE Plan Review- Is FREE Intraday Trading Legit

Kotak Securities Trade FREE Plan Review: Zero Brokerage Day Trading?

Kotak Securities Trade FREE Plan Review 2021: While looking for the best demat and trading account to trade in Indian stocks, two of the key criteria that you should check are the brokerage charges and broker’s reputation.

Kotak Securities, being a part of the Kotak group is one such broker. Traditionally a full-service broker, Kotak Securities entered the discount brokerage model in November 2020 with its Trade FREE Plan. Here, they announced zero brokerage for intraday training across segments, a first of its kind plan in India. It is also known as Free Intraday Trading (FIT) plan.

In this post, we’ll look into the Kotak Securities Trade FREE Plan Review and discuss whether FREE Intraday trading plan is actually legit for the traders and investors. Further, we’ll also look into some of the pros and cons of Kotak Securities Trade FREE Plan. Let’s get started.

Quick Link to Open FREE Demat Account With Kotak Securities Trade FREE Plan.

Quick Kotak Securities Trade FREE Plan Review

Before we start the detailed review, let us give you a quick review of the Kotak Securities Trade FREE Plan highlighting the Key Features for the reader.

Kotak Securities Limited (KSL) is a part of Kotak Mahindra Bank Ltd. In its TRADE FREE PLAN, KSL 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. Here are a few of the key points on Kotak Securities Trade FREE Plan to note:

—  Zero Brokerage on Intraday Trades
— All other F&O Trades at Rs 20 per order
—  FREE Demat Account (Rs 499 Opening Charges Waived Currently)
— Full Broker Services at Discount brokerage rate offering a wide range of investment options and research reports.

About Kotak Securities Limited

Kotak securities logo

Kotak Securities Limited (KSL) is a part of Kotak Group with a legacy of over +20 Million Customers. Looking into the parent Kotak Group, they offer a wide range of financial services in the fields of  commercial banking, stockbroking, mutual funds, life & general insurance, and investment banking. Kotak Group caters to the diverse financial needs of individuals and the corporate sector.

While discussing its Kotak Securities segment, it is one of the largest broking houses in India with a wide offline and online presence. Currently, it is the Seventh largest stockbroker in India in terms of total clients on NSE.

Kotak Securities operate in five main areas of business: Stock Broking (retail and institutional), Depository Services, Portfolio Management Services, Distribution of Mutual Funds, Distribution of Kotak Mahindra Old Mutual Life Insurance Ltd products. Being a full-service broker, they also provide in-depth market research reports to their clients.

Kotak Securities Trade FREE Plan Review

After the entrance of the discount brokers in the stockbroking industry, the traditional full-service brokers started getting a lot of competition from the new disruptors like Zerodha and Upstox. They started offering cheaper brokerage charges with technically advanced technology platforms which attracted a lot of customers.

To fight back with the disrupting discount brokerage, Kotak securities launched its TRADE FREE PLAN in November 2020. Here are key facts about Kotak Securities Trade FREE Plan:

  1. The plan is also known as FIT (Free Intraday Trading).
  2. It offers ZERO Brokerage on Intraday Trades
  3. For all other F&O trades, the brokerage is charged at Rs.20 per order
  4. MIS & Super Multiple (Cover Order) at also charged at just Rs.20 per order
  5. Trade FREE Plan offers Margin Trading Facility
  6. Investors can also use Stocks as Margin (Instead of Cash Margin) in this plan
  7. Finally, Customer Satisfaction Guarantee is offered by Kotak Securities Trade FREE Plan

Quick Note: Under the Customer Satisfaction Guarantee,  if the customer is not satisfied with the services, they can ask for refund of fees and brokerage within one month of account opening.

Another exclusive feature of this new Kotak Securities TRADE FREE Plan is that here customers can open their broking account in just 60 minutes and start trading the same day.

Overall, through the newly offered TRADE FREE Plan, Kotak securities is migrating from the trading broker model to the discount brokerage model.

Quick Link to Open FREE Demat Account With Kotak Securities Trade FREE Plan.

 

Brokerage and Other Charges of Kotak Securities Trade FREE Plan:

Brokerage Charges of Kotak Securities Trade FREE Plan

SegmentBrokerage
Intraday (All Segments)FREE
Delivery (Equity, Commodity)0.25% of Transaction
Margin Intraday Square off (MIS) & Super MultipleRs 20 per executed order
  • FREE :  Intraday Trades — All Segments:  Zero brokerage for intraday trades across Cash, Futures & Options, Currency & Commodity
  • Rs 20 Per Order : All other F&O, MIS & Super Multiple (Cover Order) — Flat fee of Rs 20 per executed order
  • 0.25% of Transaction: Equity & Commodity Delivery — Equity & Commodity Delivery at just 0.25% of transaction value. This brokerage is subject to a minimum brokerage of  Rs 20 per executed order.

Account Opening Charges and AMC

  • Account Opening Charges: NIL (Rs 499 Waived Off)
  • Annual Maintenence Charges: Rs 50 per month

Quick Link to Open FREE Demat Account With Kotak Securities Trade FREE Plan.

Is Intraday Trading actually FREE under the Trade FREE Plan?

In the Trade FREE Plan, No brokerage is charged for intraday trades for which you provide at least the exchange-prescribed margins. However, in order to adhere to statutory requirements, a nominal brokerage of only 1 paisa per scrip/underlying is charged. Further, the catch is that higher exposure intraday trades using Super Multiple will incur a flat brokerage of Rs 20 per executed order.

Trading Platforms by Kotak Securities

Kotal Securities limited offers multiple trading platforms so that the customers can choose the one that suits their requirements the best. Here are the trading platforms offered by Kotak Securities:

  •  Kotak Stock Trader: It is a is a widely used mobile trading app for trading in the Indian stock market. The app allows you to trade Equities, Futures & Options (F&O), Currency F&O, and Commodity, track your portfolio, get live streaming market updates and stock quotes, keep a watch on our research calls, and much more. Here’s a link to Kotak Stock Trader App on Google playstore.
  • TradeSmart Terminal: This terminal comes loaded with advanced trading features like Powerful watchlists, Integrated market depth in order form, Comprehensive fundamental and technical market data, Advanced charting (integrated with Chart IQ), 15-minute built-up screen (for derivatives), Sentiment and price heatmap, Option chain, Future rollover data and more.
  • Keat Pro X: This is Kotak’s high-speed online stock trading software to make the trading experience vivid and alive. A few of the key features of Keat Pro X are Live-streaming of stock market data, High-speed stock market trading, Up-to-date account information, Well-researched stock recommendations and more.
  • .com: This new trading website by Kotak securities is designed for simplicity, high-speed and performance. It comes with an intuitive interface and is loaded with new features to enhance the client’s trading experience.

PROS and CONS Of Kotak Securities Trade FREE Plan

Pros of Kotak Securities Trade FREE Plan

Here are a few of the top advantages of Kotak Securities Trade FREE 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

Cons of Kotak Securities Trade FREE Plan

Here are a few of the top disadvantages of Kotak Securities Trade FREE Plan:

  • Higher Brokerage Charge on Delivery trades compared to discount brokers
  • Higher AMC compared to other leading brokers

Closing Thoughts

Kotak Securities is a brand of the leading private bank in India “Kotak Mahindra Bank”. The Trade FREE Plan is an added benefit for the traders and investors who want to open their demat account with a reputed bank along with enjoying lower brokerage charges.

Moreover, Kotak Securities stockbroking, being a full-service broker also offers add-ons like Research Reports, Advisory, multiple investment options, etc which can be beneficial for the investors. Overall, if you want to enjoy full-service broker services along with lower brokerage charges, then you should definitely go with Kotak Securities Trade FREE Plan.

That’s all for this post on Kotak Securities Trade FREE Plan Review. Do let me know what you think about this brokerage plan by commenting below. Have a great day. Happy Investing.