Samco (formerly called Samruddhi Tradecom India Limited) is one of the leading discount brokers in India with the membership of BSE, NSE, MCX-SX, MCX and NCDEX. Furthermore, it is known to be one of the cheapest stock brokers charging a flat amount as brokerage (more on that later). Based out of Mumbai, Samco allows its clients to trade across multiple financial segments including:
“By January 2018, Samco has an active client base of 26,633.”
Samco is known to be a suitable stock broker for beginners since it provides an exhaustive repository of basic and intermediate tutorials on trading and investing. At the same time, with low brokerage charges, Samco leaves a low chance of risk for beginners as compared to other stockbrokers.
“Having said that, you’d realize by the end of the review, that low brokerage is most probably the ONLY positive about this stockbroker. Other than that, it fails to deliver much of a value to its clients.”
Samco trader is a terminal based trading platform by the stockbroker. The clients need to download and install the software to go ahead with trading. Suitable for heavy traders, Samco trader comes with the following features:
Snap Quote trading feature explains the movements of a particular stock along with current buyers and sellers’ current price and number of stocks offered
Cover orders, View RMS margin, capital or limits
More on these features can be viewed here in few of the demo videos:
Samco Web 5
Samco Web 5 is a responsive web trading platform that can be accessed directly through a browser and does not need any installs or downloads. Clients can just enter valid username and password and start trading from anywhere.
Samco web 5 comes loaded with all kinds of usable features and looks like as shown below:
Samco seems to have a quantitative approach when it comes to trading platforms. Although they have been able to provide multiple trading platforms, quality wise there are quite a few compromises that can be observed.
The Bigger concern is, there are minimal updates done on these trading platforms.
Samco Mobile is a comprehensive mobile trading app from Samco. It is known to be highly secure and authenticates the logged in user with numerous algorithms. Here is a detailed tutorial on how to download, log in and use the Samco mobile app:
Some of the features of the application include:
Real-time market information
Provision to add market watch lists
Multiple data points for stock analysis
“Samco provides one of the worst performing mobile apps in India with super low update frequency cycle, slow speed and limited features.”
At the same time, some of the top concerns with this mobile application from Samco are:
App update frequency cycle has no regularity with the last update was done in July 2016. To give you a perspective, generally, mobile apps in trading space get updated in a frequency range of 3-5 weeks.
App crashes and hangs most of the times, especially when the market has high traffic.
Below par design with the sub-optimal user experience.
Here are some of the actual mobile app reviews from Samco users:
Samco is available to its clients through the following communication channels:
The thing with Samco when it comes to customer service is that they are very salesy in their mode of discussion. However, customer service is primarily aimed at helping out existing client base when they get stuck in any specific aspect.
If Samco is looking to provide any sort of value to its clients through Customer Service, it needs to look at the following aspects very closely:
Train its customer executives team and make them skilful enough to deal with clients coming with different types of queries.
Quicken up the turnaround time for the resolution provided to the client.
Once these basic areas get figured out at Samco, then the outlook of clients may change as well.
“Samco introduced ITL (Indian Trading League), in lines to Zerodha‘s 60-day challenge, with Kapil Dev to bring in organic popularity. But what actually matters to clients is transparency, value for money service and decent trading platforms.”
There are 3 ways to transfer funds to your trading account in Samco:
Payment Gateway integrated within Samco’s trading platforms or Backoffice
For payouts, Samco requires the clients to either use the back-office or submit a payout request through the trading platforms. The funds transfer actually happen in 2-3 days (although it is told it happens the same day).
In pricing, a client needs to pay the following charges during trading:
Account Opening Charges
Brokerage of the stockbroker
Transaction Charges of the exchange
“The minimum initial deposit you need to provide for account opening is ₹25,000.”
For Samco, charges are explained below:
Samco Account Opening Charges
Here are the account opening charges with Samco:
Trading Account Opening Charges (One Time)
Trading Annual maintenance charges (AMC)
Demat Account Opening Charges (One Time)
Demat Account Annual Maintenance Charges (AMC)
Furthermore, since Samco is a discount stock broker, it charges you a flat rate brokerage across segments as shown:
Apart from account opening and brokerage charges, here are the transaction charges levied on the client:
₹20 per Crore
₹20 per Crore
₹20 per Crore
₹20 per Crore
₹20 per Crore
₹20 per Crore
₹20 per Crore
To give you an idea of how much will you take away and how much you will be required to pay to Samco, here is a sample trade for you with the data. The following image shows how much brokerage and other charges are levied on you:
Clients get the following leverage from Samco:
3 to 10 times on MIS Orders, Upto 50 times on Cover Orders, No Leverage on Carry Forward or Overnight Orders
40% to max. 50% of NRML margin for MIS with additional leverage on Cover Orders
40% to max. 60% of NRML margin
50% of NRML margin
40% of NRML margin for MIS with additional leverage on Cover Orders
If you are looking for high exposure, then Samco provides a couple of options to its clients with these plans:
By paying ₹1000 on a yearly basis, you can avail this service where you can be entitled to get up to 4 times exposure or leverage in Equity Delivery Segment. The product offers leverage on more than 300 stocks listed on the stock market. Further, it really depends on the kind of stock you are looking to purchase and then the corresponding exposure value is offered to you.
The only catch in this plan is that you are required to pay an interest of 0.05% per day on the outstanding amount of delay payment. So make sure you pay back the money quickly to avoid any of such charges.
You need to understand one thing clear before using such plans and that is, although it certainly enhances the buying power of the client it also exposes the capital to a much high risk. Unless you understand the way it works, what are its implications etc, you are advised not to use the product.
Suitable for Intraday traders, this is another leverage based product where clients can get access to margin against their shares. With this margin value, clients can trade at intraday level. Clients are supposed to pledge their holdings in the demat account and based on the value of the holdings, a corresponding value is opened up for the client for intraday trading on the stock market.
The plan costs ₹1000 on a yearly basis to the clients of the stockbroker with an additional charge of ₹60 for each scrip that gets pledged or unpledged. In this plan, clients can get margin against 801 stocks and ETFs.
With this product, you can avail margins with ZERO cash balance in your trading account. Thus, it is generally suitable for Intraday and positional traders. The concept of this product is that depending on the value of your holdings in your demat account, a corresponding amount will be opened up by the broker for you to trade in other segments.
The way it works is based on your holdings value. Let’s say the value of your holdings post haircut is ₹10,00,000, then you can get to trade up to ₹10,00,000 across multiple segments ONCE you pledge your holdings with Samco. The service is available across 820 stocks and ETFs for the clients of the broker.
The subscription charge for this plan is ₹1500 per year, with an additional charge of ₹60 for pledging or un-pledging shares (irrespective of the number of shares.)
Disadvantages of Samco
No monthly or yearly fixed price plans for heavy traders as compared to other recent discount brokers pricing plans.
Investing in IPOs or mutual funds not possible
Security concerns seen in the trading platforms.
Recent concerns in the mobile app have been raised consistently
“11 clients have filed complaints against Samco till 2017 in this financial year with one of the clients filing arbitration against the broker.”
Advantages of Samco
NRI Trading allowed
Comprehensive education material for beginner and intermediate trading clients
Exhaustive margins for different trading segments based on the order type
“Samco started well but in the last 6-8 months, there have been a lot of concerns raised by its client base. These concerns are in the category for low performing trading platforms, below quality customer service, hidden charges and so on.
So, yea if you want to have a word with Samco executives, you may go ahead and do that but make sure to realize that there are a lot of grey areas that need immediate attention from the broker including their trading platforms, customer service, and transparency.”
How to open a Demat and Trading account?
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Post this call, You need to provide few documents to start your account opening process. The documents required are as follows:
An address proof
Bank statement for the last 6 months, cancelled cheque
Passport sized photograph
AMC fees (if applicable)
Trading Account cheque
Once you are done with this, your account gets opened within 2-3 business days.
Samco Membership Information:
Here are the details on the different membership details of the discount stock broker:
SEBI Regn no.
SAMCO Securities Limited, Plot 66/1, Samruddhi House, Opp. South Indian Gymkhana, Bhaudaji Cross Road, Matunga CR, Mumbai – 19
The details can be verified from the corresponding entity websites.
Some Frequently asked questions about Samco (FAQs):
Is Samco Safe?
Samco is a discount stockbroker from the house of Samruddhi Tradecom India Limited. So from the background perspective, the broker looks safe. However, there have been quite a few complaints raised by the clients recently. The biggest concern is the kind of exposure they offer to their clients. Well, this feature has its own positives and negatives. And thus, the inclination towards risk becomes a tad bigger.
What is the minimum amount to maintain with Samco?
There is no such condition set up by the broker and you don’t need to maintain a minimum balance in your trading account with the broker. But you are required to pay ₹25,000 as the minimum trading account balance when you open the account with the broker.
What happens if the client fails to pay off the margin call while using the leveraged product – CashPlus?
In situations when the client is not able to pay off the margin call within the stipulated time, the open positions of the client are squared off and the accounts are settled accordingly post square-off.
Is the leverage product CashPlus available for derivatives trading?
No, it is only available in Equities segment.
How can I close my account with Samco?
You need to follow few basic steps if you are looking to close your demat account with Samco. Please follow this link for complete details.
Is Samco really offering the lowest brokerage charges in India?
Samco, by no means, is offering the lowest brokerage charges in India. In fact, if you look closely, it is even expensive than Zerodhaor 5Paisa. There a lot of other stockbrokers that offer cheaper brokerage services.
What are the account opening Charges at Samco?
There are no account opening charges but the broker charges you ₹400 for annual maintenance of your demat account.
What are the brokerage charges with Samco?
For Equity Intraday or Delivery, the maximum brokerage you are charged is ₹20 per executed order. They don’t have any fixed brokerage plans for their clients.
You can check out the detailed comparison of Samco Vs Other Stock brokers here: