Kotak Securities is one of the few financial institutions where NRIs can open their NRI demat account for trading. As such, today we will discuss Kotak NRI Trading Account and the corresponding provisions in place.
We will also have a look at the pricing details, the benefits of the Kotak NRI Trading account and some of the considerations you need to take care of.
Kotak NRI Trading Account Necessities:
It is good that you are looking for the Kotak NRI Trading Account. But there are other requirements as well that you need to address before you put your feet into the trading space. An NRI needs three basic accounts to start trading in securities and equities in India. These accounts are:
Bank Account: Firstly, an NRI needs special savings or current bank account in a bank of his choice. This account should be an NRE or NRO account. Currently, these types of accounts are offered by a few banks.
Demat Account: Your Demat account holds your investment for trading in an electronic format. The Demat account can be opened with the bank. Kotak also offers opening Demat account with them for Kotak NRI Trading Account.
Kotak NRI Trading Account: This account is used for the trading purpose. It will hold the securities and equities you purchase. It is linked to the Demat account. Any transactions made with Kotak NRI Trading Account will reflect in the balance of the Demat account.
Kotak NRI Trading Account Basics
First things first, as an NRI you will need to open a specialized account with the bank. The NRO account is the best for this method. In an NRO account, your funds will be held on a non-repatriable basis.
Next, to open the Kotak Demat account, you have the option to go with your bank or with Kotak. Opening your trading and Demat account together can create a more seamless experience for you. Therefore, opening your Demat account with Kotak would be a good choice.
The next step would be to open a Kotak NRI Trading Account. For any assistance, their customer care is there to help. Check Kotak Securities Customer Care details.
Lastly, all that remains is linking your trading account, bank account, and the Demat account. If you have opened your Demat account with Kotak, your Demat and trading account would probably be linked already. All you need to do is connect it to your bank account.
Kotak NRI Trading Account Charges
Every broking company charges a fee for any trade and transaction you make in the market. Same is the case with Kotak NRI Trading account. This fee is called brokerage, which is charged based on the total traded turnover amount. There is a specific percentage fee that is discussed with you while you open the account and that percentage is levied as brokerage on your trades.
Here is the complete list of the fees that you will be incurred while trading with Kotak NRI Trading Account:
There are an account opening charges of ₹3750. It is a one time charge that needs to be paid when you open your account with Kotak Securities.
Generally, the brokerage is kept at 1% of the traded turnover or 25 paise each share, whichever is higher. However, you are advised to negotiate with the broker on these charges before you complete all the account opening related formalities.
Furthermore, there is a securities transaction tax of 0.1%.
Additionally, an NRI needs to maintain an average Quarterly balance of ₹10,000 in a savings account.
If the NRI sells the stocks within 12 months of purchase, he is also charged a Short Term Capital Gain Tax. This tax is 15.45% of the profit.
For Demat account, a maintenance fee of ₹75 is charged per month. For PIS account, a maintenance fee of ₹1000 is charged every year.
Kotak NRI Trading Account Benefits:
There are various benefits if an NRI opts for Kotak NRI Trading Account. These are:
Kotak Research: Kotak has a specialized research team which publishes reports and other research related to the trading market. These can help you make important decisions for trading.
Kotak Securities Academy: Kotak Securities Academy gives complete guidance to someone who is just starting with their trading venture. It has all the information you need on equities, securities, futures, and mutual funds.
Multi-Platform: Kotak NRI Trading account is a multi-platform feature. You can use it through the cloud, through the mobile app as well.
Trading after market close: Kotak has a unique feature called after market hours trading. This allows you to place your trade even after the market has closed. Your trades would be executed as the first thing when the market opens the next day.
Keat Pro X Access:Keat Pro X is the Kotak’s native software for trading. If you open a Kotak NRI Trading Account, you will get free access to it. It allows you to create watchlists, research your favourite stocks, and keeps a track of your profit as well as losses. Further, you can also get stock recommendations through it.