HDFC securities, a subsidiary of the renowned HDFC bank, was launched almost 2 decades back in April 2000 as a bank-based full-service stockbroker.
Let’s try to understand what all value propositions this broker has to offer and whether it makes sense for you to open your trading account with it.
HDFC Securities Review
HDFC securities due to its banking services from the parent brand offer a 3-in-1 account that includes your banking, demat and trading services.
This feature is only available with stockbroking companies that have the leverage of a banking services parent company.
The advantage of having a 3-in-1 account is that you get a seem-less trading experience since your bank account is directly integrated into your trading account which helps in instant money transfer.
In case of non-banking financial companies (NBFCs) such as Ventura Securities, India Infoline, Religare Securities money transfer from your bank account to your trading account takes some time that might elude you from making money at specific lucrative opportunities.
“HDFC Securities has around 6,38,425 active clients by 2021-22 for this financial year, making it the one of the largest stockbrokers in India.”
With more than 260 branches across the country, the full-service stockbroker has an okayish offline presence.
HDFC Securities Products
If you are looking to partner with the broker, here is a quick review of the HDFC Securities Sub Broker business. This bank-based stockbroker offers its customers to trade in the following segments:
HDFC Securities is a full-service stockbroker and regularly provides tips and recommendations to its clients through research calls and reports on a regular basis. These communications are generally done through:
As far as the quality of research is concerned, the trading calls and tips at the intraday level are better than the Industry average in nature while the fundamental research is pretty thorough.
So, depending on your trading behavior, you may choose to follow the research offered by the broker.
Nonetheless, the best way is to make sure you perform some analysis in one form or other on your own as well. By doing this, you will be able to back the research provided by the broker and put your money in much more comfort.
The bank based stockbroker provides the following communication channels to its clients as shown:
Online assistance through web form/chat
One of the differentiating aspects of HDFC Securities customer care is its chat-bot tool called ‘Ask Arya’. This chatting tool is automated in nature and can assist you in areas such as:
Investing with HDFC Securities
Stock Market Quotes
Research calls and tips
Mutual fund redemption
Although the quality of resolution is better than average HDFC is known for delayed responses to its clients, be it any form of communication.
Thus, if you are looking to open a trading account with the bank, then you must consider this particular aspect while making this decision.
HDFC Securities Charges
HDFC is one of the premium stockbrokers of the country, with high account opening, maintenance and brokerage charges.
Thus, you have to understand that although you might “think” that opening a trading account with a bank is “safe” for you but the fact of the matter is, it is definitely one of the most expensive ones.
Here are the details:
HDFC Securities Account Opening Charges
To open a 3-in-1 account, here are the opening charges that a client needs to bear:
The depository charges are originally levied by Depositories such as NSDL or CDSL to Depository participants such as HDFC Securities.
These charges are further transferred to the traders by the broker.
You need to pay a specific amount every time you sell a share in the market, which is then called a depository charge.
In the case of HDFC Securities, you need to pay ₹13.5 per scrip (GST separate).
Thus, while making your profit/loss calculations, make sure you consider this cost as well.
HDFC Securities Margin Calculator
If you are looking to use some exposure on top of your trading account balance, then this full-service stockbroker offers you the following margin values:
Upto 20 Times for Intraday & 2 Times for Delivery
NA for Intraday
NA for Intraday
NA for Intraday
NA for Intraday
HDFC Securities has recently introduced a leverage-based trading facility called “HDFC Securities e margin“, where broker’s clients are provided with a couple of benefits:
The extra margin on their trades
Hold those bought stocks for up to 180 days and clear your dues by T + 180 days where T is the trading day.
The way it works is pretty simple!
Once you login to any of the trading platforms of HDFC Securities, select Product as ‘E-Margin‘ post selecting the stock you are looking to buy.
This needs to be noted that you will be required to pay an interest of 0.05% per day till you clear your outstanding amount with the broker.
HDFC Securities Intraday Leverage
For Intraday trading, HDFC Securities provides a reasonable margin across 465 stocks listed in the major indices. The margin range, however, may vary from 5 times to 20 times.
This needs to be understood that the orders placed for intraday are to be squared off within the same trading session. If not done manually, the trade can be automatically squared off by the trading app.
Furthermore, users are advised to use the concept of exposure very cautiously and unless you understand its intricacies or implications, it is advised not to be used.
It can be risky and may even eat up your trading capital as well.
Here is the membership information of the broker with different exchanges and intermediate parties:
HDFC securities, I Think Techno Campus, Building B, Alpha, Office Floor 8, Near Kanjurmarg Station, Kanjurmarg (East), Mumbai - 400 042
The details can be verified from the corresponding websites of the exchanges.
HDFC Securities FAQs
Here are some of the most frequently asked questions about HDFC Securities along with their corresponding answers:
How is HDFC Securities better than discount brokers such as Upstox or Zerodha?
HDFC Securities, being a bank-based full-service stockbroker, provides its clients with a 3 in 1 demat account.
Using such an account, you don’t need to perform fund transfers manually. The transfer between your demat and trading account (& vice versa) happens automatically and takes away any potential hassles from you.
Furthermore, account opening with HDFC brings a “sense” of security of your funds and shares with the broker.
Having said that, prominent discount stock brokers of the country are reasonably trustable to an extent and are very much part of the regulations set up by SEBI.
As a beginner, shall I opt for HDFC Securities trading account?
It’s your choice at the end of the day. As a beginner, yes the bank based full-service stockbrokers bring a sense of trust but SEBI regulates each stockbroker in a very precise way.
For a beginner, its advisable to look for a broker that can potentially assist in stock trading education, tips/research, to go along with reasonable brokerage charges.
Thus, HDFC Securities is a good stockbroker but certainly one of the most expensive ones too.
Users are advised to use their own discretion in stockbroker selection.
How the Intraday brokerage charges are calculated by HDFC Securities?
Although it depends on factors such as Initial deposit, overall turnover (and your negotiation skills), the general brokerage charges for intraday trading at HDFC are 0.1%.
In other words, if you trade for ₹1,00,000 at an intraday level, then you are supposed to pay 0.1% of ₹1,00,000 i.e. ₹100 as brokerage.
This is a pretty high number, especially with the advent of discount brokers that charge ₹9, ₹20 as brokerage charges.
I already have a Demat account with HDFC Securities, Can I have more than 1 Demat Accounts?
Yes, you can have any number of demat accounts as you want.
There is no legal limitation or cap on the number of demat accounts one can have.
However, you need to realize that most of the stockbrokers do levy annual maintenance charges (AMC) in the range of ₹300 to ₹1000 that you are supposed to pay every year.
Thus, although you may choose to have multiple demat accounts you will be required to pay multiple AMCs as well.
What is the minimum brokerage charge at HDFC Securities?
Irrespective of your trade value, you will be required to pay ₹30 as the minimum brokerage charge with this broker.
Can I open my Demat account with HDFC Securities and Trading account with some other broker?
Yes, you may choose to do that. However, you will be required to integrate your Demat account with the trading account so that whatever stocks you are buying from the market, get stored in the demat account as well.
How is the research quality of HDFC Securities?
Although HDFC is a renowned full-service stockbroker, when it comes to their research quality both at the fundamental and technical level, the overall quality is average.
You are advised to perform your own analysis as well to back the tips provided by the broker.
HDFC Securities Trading Account Closure Form
If you are looking to close your trading account with this stockbroker, first of all, you need to download this form.
Once downloaded, you need to carefully fill in the requisite details including your demat account number, your linked ID, corresponding signatures etc.
Post filling the form, you can submit the form to your nearest HDFC Securities or HDFC Bank branch. You may also choose to courier this form to the HDFC Securities headquarters (address mentioned below).
More on HDFC Securities
In case you are looking to know more about this full-service broker, here are a few reference links for you: