Is Kotak Securities A Discount Broker?
Check All Frequently Asked Questions
As a stockbroker, Kotak Securities has been prevalent in the stock market industry for a long time however, with its pricing and functionality, a lot of times people tend to wonder is Kotak Securities a discount broker?
When it comes to pricing, we, of course, there are different Kotak Securities brokerage plans and in one of the plans, the brokerage is even free. In some trading segments, it charges brokerage even on a flat fee-based model which is what discount brokers do.
But is Kotak Securities a discount broker for real? Let’s find this out in this article.
Kotak Securities Products and Services
Well, Kotak Securities is a stockbroker, and that too is one of the best stockbrokers in India. It is a subsidiary of Kotak Mahindra Bank and it has been functional in the industry for 28 years. But is Kotak Securities a discount broker?
Well for this let’s check out the products and services offered by the broker and also the charges charged for those services.
Being a stockbroker, Kotak Securities provides the following services to its clients:
- Demat Account
- Trading Platform
- Research and advisory including both technical and fundamental analysis,
- Personal Relationship Manager
- Offline Services through its multiple branches
- Portfolio Management Services
In all, the broker offers all the services provided by a full-service stockbroker in the industry.
But Kotak Securities charges zero brokerage for intraday. Doesn’t it make Kotak Securities a discount broker? Well! The broker is defined by its services and not by a brokerage, but people consider the brokerage to be the primary way to choose a stockbroker in India.
It is one of the factors, and therefore many full-service stockbrokers are coming up with relaxation in their brokerage fees by introducing different plans.
Let’s have a quick look at the Kotak Securities brokerage charges to get a clear picture of the type of broker it is.
Kotak Securities Brokerage
When it comes to Kotak Securities brokerage, the broker comes up with multiple plans where it offers different kinds of benefits to its clients. But in every plan the broker comes with the minimum brokerage
Each kind of plan comes up with one-time subscription fees and relaxation.
For example, under the Kotak Securities Zero Brokerage plan, a customer doesn’t have to pay any brokerage for trading across segments. However, the catch lies in the eligibility where a person has to be under 30 years of age to access this plan.
Similarly, in other plans, you may see a ₹20 per executed order as a brokerage in Futures & Options trading across Equity, Commodity, and Currency under the Kotak Trade Free plan and Trade Free Max plans.
The same brokerage under the Dealer assisted plan varies from 0.039% to 0.39% while in the case of Currency and Options trading only, the brokerage is charged on every lot.
Now to summarize the concept and clear the doubt about is Kotak Securities a discount broker let’s mention one last factor.
Almost all the discount brokers come with the upper cap, i.e. the maximum brokerage charged for a particular trade. For example, let’s assume there is a discount that charges 0.03% or ₹20 brokerages for intraday trading.
Thus, whatever the trade value is the trader has to pay the maximum brokerage of ₹20 per trade.
On the other hand, Kotak Securities charges a minimum brokerage of ₹20. So, if the brokerage corresponding to the turnover value is less than ₹20 still has to end up paying ₹20 as brokerage fees.
Therefore, there is a contrast between the Kotak Securities charges and the charges of other discount stockbrokers proving the point that Kotak Securities is not a discount broker.
Based on several parameters such as the services, the brokerage charges, offline presence, and the trading platforms, it is easy to conclude that Kotak Securities is a full-service broker and not a discount one.
Through this article, we informed you about the major differences between Kotak Securities and other discount brokers and we hope you didn’t miss the very significant difference in the upper and lower cap in the brokerage charges between both kinds of brokers.
If you are someone who is looking to find a full-service stockbroker who can guide and assist you through your investing/trading journey, Kotak Securities can be the one for you.
Want to begin your investment journey with a trusted and renowned stockbroker. Get in touch with us now and we will assist you in opening a demat account online for FREE!