Finvasia is a recent kid on the discount stockbroking block. Their proposition is simple – Zero brokerage across segments, pay for the trading platforms on a fixed basis (more on that later). The brokerage model is termed as “Technology Costs” for clients and users do not to pay based on the number or amount of trades done on the stock market.
Launched in 2013, this discount broker is based out of Chandigarh (Punjab) and allows its clients to trade in the following segments:
It is backed by some of the leading venture capitalists including Intrinsic Investment Limited with the latest round received in August 2016.
“Finvasia has a total of around 2,597 active clients for this financial year. This number is one of the least in the whole stock market industry in India.”
Natty Virk (CEO) and Sarvjit Singh Virk (Co-founder)
Finvasia Trading Platforms
The discount stock broker offers different trading platforms to its clients and is looking to launch 4-5 new trading and analysis based platforms.
Here are the details:
Finvasia – NOW
NSE NOW or Neat On Web is free to use web-based trading platform powered by NSE. It is a prominent tool by NSE licensed to Finvasia like other brokers along with the NSE mobile app. Users don’t need to download or install anything but just access using a browser from any desktop, laptop or mobile.
Some of the features of the platform are:
Allows to trade across Equity, Derivatives, Currency and Mutual funds
Aftermarket orders (AMO) allowed
Customized screen layouts as per user preferences
Accessible on mobile across iOS, Windows along with Android
For NSE, this is a FREE to use trading platform. But for BSE, the premium software comes at ₹120 per segment per month.
NEST is a terminal base executable software that users can download and install on their laptops or desktops. It is also a tool from NSE itself with highly usable features such as:
Provision of Online payment transfer
Order placement across multiple asset classes and trading segments
Interactive charting functionality with multiple indicators within the same screen
This is a paid platform where users pay at per segment and at bracket order level. Here are the details:
₹149 per segment
₹777 across segments
₹99 for Bracket Order
Finvasia AMI Broker
AMI Broker is a technical analysis tool with all sorts of interactive charting functionalities. It also has an inbuilt integration with the trading academy which displays users with scanning, custom indicators etc. Here are some of the features of AMI Broker:
Interactive charts for technical analysis
Helps to double check client’s investment strategy
Personalized user interface
This is a paid platform priced at ₹299 per month. Here is the link to the tutorial.
Scalpert from Finvasia is a web and mobile-based trading platform with a specific set of features in terms of market analysis and trading. The application is available in web form as well as an Android trading app as well. There are no charges attached to using this application and is free to use.
Some of the features of Scalpert include:
Available with around 40 technical indicators and multiple chart types for detailed technical analysis
Fund transfer facility provided
You can place multiple types of orders through the application
Overall design is a bit primitive and can certainly be optimized
Presto provides API based solution to its clients for customized trading (something like Connect API from Zerodha). Presto suits heavy traders who prefer to do their own technical analysis and take trading decisions themselves. This tool provides functionalities such as:
Custom APIs for platforms including.NET, JAVA, Python, C#
Real-time LIVE market data
Multiple algorithm based strategies
Customized request based strategies allowed
This is a paid platform and is priced at ₹1599 per month.
Blitz is another powerful trading platform from the house of Finvasia. Like Presto, Blitz is also API model-based platform which comes loaded with the following features:
Multi-asset trading across different venues along with exhaustive risk management making sure system stays safe.
Some of the strategies that can be employed within this trading platform are – Option Twist Leg, Calendar Spread, Cash to Future.
Complete automated trading with an end to end market feed, order management system, risk management etc
Users can develop custom trading strategies where variables can be edited anytime
The technical analysis allowed with more than 40 interactive indicators
This is a paid platform and is charged at ₹7777 per month.
Finvasia Customer Service
The discount stock broker offers the following communication channels to its clients such as:
Since its a discount stock broker, thus, most of the communication channels are online in nature and there are no offline branches or offices in India and outside. As far as the turnaround time is concerned, it is relatively quick and you will get the resolution of your concern within a stipulated time period. The quality of the resolution can be unsatisfying at times. Furthermore, the skill set of the customer executives can be improved by time through regular training and other relevant techniques.
Thus, don’t keep huge expectations but overall the service quality will stay on average.
The pricing in this case, like in cases of other discount stock brokers, is pretty competitive. There are multiple types of charges levied and users must get it documented (or emailed) before opening their accounts with the broker. Here are the complete details:
Finvasia Account Opening Charges
Following are charges for opening an account:
Trading Account Opening Charges
Trading Account Annual Maintenance Charges
Demat Account Opening Charges
Demat Account Annual Maintenance Charges
Thus, the broker does not charge its clients anything for account opening or maintenance. In a sense, it’s a good way to acquire clients by removing one potential hurdle, especially for beginners. Having said that, our suggestion is to look beyond “free” accounts since there are multiple other factors that need to be looked upon by finalizing a stockbroker for yourself.
The discount broker has a simple laid out pricing strategy with no fixed or percentage based commission from its users. It charges its clients based on the trading platform he/she chooses for its trading needs.
Choice of the platform basically defines the kind of trader the client is, for instance – if the client chooses a basic NEST platform – the trader is light in its trading frequency while somebody using an exhaustive and comprehensive trading platform such as Presto is somebody who details out day to day trading strategy and is a heavy trader generically.
Here are the detailed charges based on the trading platform:
Trading Platform Chosen
₹0 for NSE, ₹120 for BSE per segment
Standard Plan - ₹149 per segment, ₹99 bracket order Premium Plan - ₹777 all segments, ₹0 bracket order
Apart from brokerage, the broker levies the following transaction charges:
The transaction charges are charged based on your trade value and in this case, the transaction charges go hand in hand with the industry standards. This is being mentioned because there are few stockbrokers such as Samco, Wisdom Capital that charge much higher transaction charges from its clients by eluding them through the low brokerage proposition. Users are required to be very cautious of these small intricacies.
Finvasia Exposure or Leverage
Here are the details on the exposures provided:
Upto 10 times
Upto 2 times
Upto 2 times
As shown above, you, as a client won’t really be offered much exposure across segments. These values are generally tough to negotiate at the very start and users looking to use leverage in their trades might get disappointed here.
Here are some of the concerns if you use the services of Finvasia as your trading firm:
A new name in the stockbroking space, so gaining brand trust will take time
Relatively lower leverage provided across segments
Usage of few trading platforms is paid in nature
The pricing model is not apt for beginner traders
Customer service can be made better, especially in terms of quality of resolutions.
Low exposure or leverage values offered across trading segments.
“The discount broker has already received 2 complaints in this financial year which is 0.22% of its active client base. The industry average is 0.06%, thus, the broker certainly needs to improve on service aspects.”
At the same time, these are the merits of this discount stockbroker:
A comprehensive range of trading platforms
No account opening charges or trade based broking charges applicable
Reasonable transaction charges
Robo Advisory services at disposal for clients
Finvasia is looking to try something different in the stockbroking industry. With its emphasis on providing multiple trading platforms and brokerage entirely based on the kind of the trading platform chosen, the broker certainly is looking to create a sort of disruption.
However, to back it up, it certainly needs to improve its customer service, the performance of the in-house trading platforms and other values to come out as a promising name among the crowd of other stockbrokers.
Looking to Open an Account?
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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
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.
Finvasia Membership Information:
Here is the membership information of the broker with different exchanges and intermediate parties:
Plot # 10, Netsmartz House (Level 3). Rajiv Gandhi Chd Tech Park. Chandigarh. India 160101
The details can be verified from the corresponding websites of the exchanges.
Some Frequently Asked Questions About Finvasia (FAQ):
Is Finvasia a trustable stockbroker? Is it reliable?
The broker has been recently launched in the year 2013 in a full startup mode. The broker has a small team based out of Chandigarh which is slowly shaping up. Furthermore, the broker does have the backing of prominent investment houses.
Thus, as of now, the broker operations look promising but its too early to call it reliable. For reliability, there are few discount stockbroking houses such as 5Paisa, Zerodha, Fyers that have made a decent impact on the industry in quick time.
How does Finvasia charge its clients?
The broker does not charge its clients any brokerage charges but clients are charged for using the trading platform(s). As per the choice of the client, the corresponding trading platform is made available to the client and requisite charges are levied on a monthly or yearly basis.
The client does not require to pay any brokerage at per trade, order or value level. In a sense, the broker’s brokerage model suits medium to heavy traders who are looking to have different options of trading platforms on a day to day basis.
How are the trading platforms of Finvasia?
Quantity wise, there are various trading platforms offered by Finvasia. However, there are a very few that qualify as high-performance trading platforms and most of those softwares are outsourced without much direct support from the discount stock broker. The broker provides platforms such as Omnesys Nest, Now, Blitz Trader, Ami Broker, Presto, Scalpert but most of them are required to improve their performance, user experience, usability etc.
It’s better to have a detailed understanding of your requirements from the trading platform and then take a calculative judgment. The best way is to get a demo of the trading platform from the broker before opening your account.
What are the account opening charges at Finvasia? Also, what are its annual maintenance charges (AMC)?
There are no account opening and maintenance charges at Finvasia and most of the process is free of cost. In a way, it’s a marketing strategy to acquire as many clients as possible by offering free accounts. However, users are advised not to base their decisions just on the fact that the account opening is free.
There are a lot of other factors such as brokerage, platforms, customer service, exposure, trading products etc which are equally important in making a choice.
What trading and investment products does Finvasia offer?
The broker allows its clients to trade and invest in Equity, Commodity, Currency, IPOs, and bonds. One important thing to consider is that IPO investments are not directly possible through the broker. Thus, get in touch with the stockbroker to confirm about IPO investments methodology.
You can check out the detailed comparisons of Finvasia Vs Other Stock brokers here: