Kotak Mahindra Bank provides its stockbroking and other related services through its subsidiary, Kotak Securities, which was formed in the year 2004. Kotak demat account can be opened under the brand Kotak Securities.
In terms of numbers, it is one of the largest broking service providers in India. It serves more than 13.5 lakh customers through more than 1300 branches and other offices in India.
As far as the active clients are concerned, when last checked, it stood at 4,56,143 which is a decent number to have in the overall stockbroking space.
Kotak Securities is a participant with Indian depositories like NSDL and CDSL. It was awarded the title of “Best Broker” in the year 2019. In this article, we shall talk about Kotak demat accounts and all the aspects related to them.
Kotak Demat Account Demo
Let us discuss some of the features related to opening a demat account with Kotak Securities.
1. They offer a Trinity account (also called 3 in 1 Demat Account) which provides a smooth transaction flow among the bank savings account, trading and demat accounts opened with Kotak.
2. One can easily view one’s holdings of demat account that can comprise of stocks, debt, mutual funds etc. online.
3. One can avail the services of the dematerialisation of physical securities into digital form and rematerialisation services of converting digital copies into physical form.
4. Customer support is available at any time in almost all the branches in India spread across hundreds of cities and towns.
5. There is no requirement of minimum holdings in the Kotak demat account.
For those who want to know how to open Demat Account offline here is another broker Kotak Securities, that brings forward an offline process to open an account.
It is very easy to open a Kotak demat account and the simple step by step process is described below:
1. The account opening form of Kotak demat account needs to be downloaded from here and fill up.
When a short form is filled on the website, a call will be given to you within a span of 3 minutes. The customer care executive will then ask questions regarding a valid PAN card and Aadhar card.
2. Kotak Demat Account-Related Documents: Now, one needs to have copies of some important documents like Aadhar card, voters id card or a driving licence as a proof of your identity, documents like passport, DL, etc. as a proof of your address, copy of a valid PAN card, passport size photographs, etc.
3. These documents will be collected by your relationship manager from the location you will tell to the customer care executive during the call.
Once your documentation is validated and processed, the Kotak Securities team sends you a welcome kit with details on your trading account.
Within this kit, you will find the default credentials linked to your trading account online.
You need to log in using those details by clicking on the ‘Activate Account‘ link in the welcome email.
Once these details are confirmed, you need to enter a trading account password as per your preference. Post this, your demat and trading account with the broker will be activated.
Kotak Demat Account Charges
The Kotak demat account can be opened within 15 minutes for free.
Account Maintenance Charges for Kotak Demat Account for resident Indians = ₹50 for every month
And for Non-Resident Indians, the AMC charges are ₹75 for every month
₹750 are charged for opening a trading account with Kotak Securities whereas there are no maintenance charges for the trading account.
If there have not been any transactions and securities in the Kotak demat account, no charges will need to be paid for the maintenance of the account.
Kotak Demat Account Fees Others
1. The charges for dematerialisation of securities are ₹50 for a single request of dematerialisation and ₹3 for every certificate that needs dematerialisation.
2. The charges for rematerialisation of securities are ₹10 for every one hundred securities which may include mutual funds, stocks, etc.
The minimum charges that need to be paid for rematerialisation are ₹15.
3. The charges for Non – BSDA account applicable in sell transactions happening on the market as well as off-market are 0.04% of the total value of the securities.
In addition, there are some charges related to NSDL also. In these cases, the number of charges that are minimal is ₹27 + Charges of NSDL.
4. The charges for BSDA account applicable in sell transactions happening on the market as well as off-market are 0.06% of the total value of the securities.
In addition, there are some charges related to NSDL also. In these cases, the number of charges that are minimal is ₹44.5 + Charges of NSDL.
Note – The charges mentioned for non BSDA and BSDA accounts are applicable only on individual accounts.
5. Account Maintenance Charges: These charges depend on the number of transactions happening in the Kotak demat account.
Less than 10 debit transactions – ₹65 for every month
11 – 30 transactions – ₹50 for every month
More than 30 transactions – ₹35 for every month
6. One can pledge his / her securities in order to gain additional margin.
For availing this facility, extra charges need to be paid which is 0.05% of the total value of securities being pledged. The minimum charges applicable for pledging are ₹30.
7. Similar to the pledging of securities, the invocation of pledge also incurs some charges which are 0.04% of the total value of securities being pledged.
The minimum charges applicable for this service are also ₹30.
8. Charges for requesting any changes in account information like residential address, email id, etc. are ₹49 for every request.
9. ₹99 are charged for every DIS booklet re-issuance.
10. Charges for CAS on a monthly basis are ₹3.
Kotak Demat Account Brokerage Charges
Kotak Demat account offers five different kinds of brokerage plans to its different customers according to their individual needs and requirements.
1. Kotak Fixed Brokerage Plan
This plan works best for those who are new to the trading world. Let us now get into its details.
As per the name, all the brokerages are flat charges applied on every transaction of every segment:
Delivery based trades
Squaring off buy side and sell side trades
Buying and selling in Futures Transactions
₹300 for every lot traded
Under the fixed brokerage plan, the minimum possible brokerage is ₹0.04 for every cash delivery based trade and ₹0.03 for every intraday order OR ₹21 for every order that has been executed.
The higher of the 2 values described above is taken as brokerage amount.
The minimum possible brokerage for trading in equity futures is ₹0.03 per share subject to a maximum amount of 2.5% of the total value of the contract.
The facility of Call and trade can be availed for free for the first 20 calls and ₹20 for every call after the 20th call.
The facility of alerts through SMS can be availed at ₹50 for every month for 1 category. For availing this facility for both the categories, ₹75 will be the charge that one will have to incur.
2. Kotak Dynamic Brokerage Plan
All the brokerages under this plan are dependent on the turnover of the account.
For Cash delivery segment – All the brokerages mentioned below apply to both buy and sell-side of the transactions:
Range of Turnover
Less than ₹1 Lakh
₹1 lakh - ₹5 lakhs
₹5 lakh - ₹10 lakhs
₹10 lakh - ₹20 lakhs
₹20 lakh - ₹60 lakhs
₹60 lakh - ₹2 crores
More than ₹2 crores
For intraday cash segment:
Brokerages for a turnover of fewer than ₹25 lakhs are 0.06% and for a turnover, greater than ₹25 lakhs are 0.05%. This is also applicable on both the sides of the trade.
For Transactions Done in Futures Segment
Range of Turnover
Less than ₹25 lakhs
₹25 lakhs - ₹2 crores
₹2 crores - ₹5 crores
Greater Than ₹5 crores
For Transactions Done in Options Segment
Brokerages in this segment depend on the value of premiums on a monthly basis.
Value of the Premium on a Monthly Basis
Brokerage - Intraday
Brokerage - Settlement
Less than and equal to Rs. 4 lakhs
Rs. 4 lakhs - Rs. 11 lakhs
More than Rs. 11 Lakhs
The minimum amount of brokerage for intraday for all the above-mentioned categories are ₹300, ₹240 and ₹180 on a per lot basis, respectively.
For Trading in Currency Futures
0 - ₹3 crores
Higher of the 2 options - a) 0.04%, b) ₹20 on per lot basis
₹3 crores - ₹8 crores
Higher of the 2 options - a) 0.036%, b) ₹18 for every lot
₹8 crores - ₹15 crores
Higher of the 2 options - a) 0.03%, b) ₹15 on per lot basis
₹15 crores - ₹30 crores
Higher of the 2 options - a) 0.02%, b) ₹10 for every lot
More than ₹30 crores
Higher of the 2 options - a) 0.015%, b) ₹7.5 for every lot
For Trading in Currency Options
0 - ₹3 crores
₹20 for every lot
₹3 crores - ₹8 crores
₹18 for every lot
₹8 crores - ₹15 crores
₹15 for every lot
₹15 crores - ₹30 crores
₹10 for every lot
More than ₹30 crores
₹7.5 for every lot
The minimum possible brokerage for cash delivery and the intraday segment is ₹0.04 per share or ₹21 for every order that has been executed on the exchange. The higher of the 2 options is considered to be the brokerage.
The minimum possible brokerage for trading in equity futures is ₹0.04 per share subject to a maximum amount of 2.5% of the total value of the contract.
Kotak Securities provides a provision of an NRI Demat Account for traders residing outside India.
The Kotak NRI Trading Account can be opened for ₹3750 and the brokerage to be paid is generally 1% of the overall trade turnover value.
The NRI Traders are supposed to keep a quarterly minimum balance of₹10,000 in their savings account.
With an NRI Kotak Demat Account, the traders get access to different trading applications, research reports etc as part of their account. Furthermore, you can also place AMO (After Market Orders) through your trading account with this stockbroker.
Kotak Demat Account App
One can now view his / her Kotak demat account holdings on a mobile app called Kotak Stock Trader. This app also helps in trading.
Some of the best features of this app are discussed below:
Checking of holdings in one’s account online
Trading with real live streaming data on markets
Seamless transfer of funds from a bank account to Kotak demat account
Margin trading facility is available at Kotak where one can borrow some money on the spot so as not miss trading or investing opportunity.
Research reports are available for Kotak customers that can be availed whenever they want on paying some additional charges.
Kotak Demat Account Problems
Like any other thing in the financial markets, there are a few disadvantages of Kotak demat account also. Let us look at them –
Brokerages are higher in comparison with other brokers in India. Since it is a full-service broker, its brokerages are higher as compared to discount brokers.
Some of the reviews say that the Kotak trading app is not quite user-friendly and the customer care experience not so good.
Thus, it is suggested you have a quick guest demo of the app before committing yourself to the broker for your share market investments.
Kotak Demat Account Closure Form
If in case you are looking to close your Kotak Demat Account, you just need to fill this Form.
You need to fill details in the ‘Demat’ account section carefully and submit the form to the closest branch of this stockbroker. You may choose to courier this form to the head office of Kotak Securities as well, as per the guidance of the customer support.
You will be provided with an acknowledgement slip with the service request number mentioned in it.
Make sure you take care of that slip till the proceedings of account closure are completed. It takes a few business days post which your Kotak Demat Account is closed.
Kotak demat accounts are quite popular in India which can be opened along with a savings bank account and trading account with Kotak. With a Kotak demat account, one can view one’s holdings in it anytime through the internet.
One can avail the facility of dematerialisation and rematerialisation through Kotak demat account. Service charges for different facilities have been discussed in the article at length.
There are 5 kinds of brokerage plans that Kotak demat account offers for trading purposes – Kotak fixed brokerage plan, Kotak dynamic brokerage plan, Kotak advance brokerage plan, Kotak NRI brokerage plan and Kotak free intraday trading plan.
The charges associated with every plan should be carefully studied and the best suiting plan should be chosen.
Kotak Securities app for mobile phone trading is also available at Google play store and apple store. One can download the app for viewing one’s holdings as well as making transactions.
Advantages of Kotak demat account include 3 – in – 1 account and seamless flow of transactions among the three accounts, availability of margin facility and research reports. Disadvantages include higher brokerage costs, etc.