HDFC securities, 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 6,64,256 active clients by 2019 for this financial year 2019-20 making it the 3rd largest stockbroker in India.”
With more than 260 branches across the country, the full-service stockbroker has an okayish offline presence. If you are looking to partner the broker, here is a quick review on HDFC Securities Sub Broker business. This bank-based stockbroker offers its customers to trade in the following segments:
Mr Dhiraj Relli, Managing Director & CEO, HDFC securities Limited
HDFC Securities Trading Platforms
The full-service stockbroker provides online trading applications at Web, desktop, and mobile platforms. The good part about these trading platforms is that all of these softwares are developed and maintained in-house by the bank based broker.
Here are the details:
HDFC Securities Trade
HDFC Securities provides web trading through its browser-based application “Trade.HDFCSec”. This browser-based application can be accessed from anywhere through your desktop, laptop or mobile with an internet connection. And since it is a responsive application, the user experience across devices says intact and optimal.
Some of the features this application has are:
A highly customizable trading system where you can personalize your trading experience as per your preferences
Advanced and interactive charts for your technical analysis
Research reports, news and market tips within the application
Blink is a terminal based trading application and is known for its high-speed trading edge as compared to the rest of the trading platforms. Some of the other prominent features of the trading software are:
Observe real-time price movement and make your move
Transaction monitoring with the order book, trade book, and net position
A single user interface for placing an order in Equity and Futures & Options
Shortcuts for functions such as Buy, Sell, Order book etc
The only concerning area with BLINK is that it comes with a subscription price and is not for free.
The subscription price for 6 months is ₹2999 and ₹3999 for 1 year.
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 is better than the Industry average in nature while the fundamental research is pretty thorough. So, depending on your trading behaviour, 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 Pricing
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:
If you are looking to use some exposure on top of your trading account balance, then this full-service stock broker 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:
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 platform 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 you outstanding amount with the broker.
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.
HDFC Securities Disadvantages:
Some of the concerns of opening an account with this bank based full-service stockbroker are:
The biggest concern is the charges it takes for using its terminal-based trading platform BLINK
No trading possible in Commodities segment
SMS based research and tips services are paid in nature
Some hidden charges have been observed being levied against customer accounts.
HDFC Securities Advantages:
At the same time, here are some positives of opening an account with the broker:
Enjoys the brand equity and trust built by its banking services provider HDFC bank
Provision of 3-in-1 account that allows easy fund transfers between your bank and trading account
Helps you in trading education throughout your experience with HDFC securities
Offers NRI account which is one of the rarest features among stock brokers
Looking to open an account and start trading?
Enter Your details below to get a call back NOW.
Post this call, You need to provide a few documents to start your account opening process. The documents required are as follows:
An address proof
Bank statement for the last 6 months, cancelled cheque
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.
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 stock brokers bring a sense of trust but SEBI regulates each stock broker 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 stock broker but certainly one of the most expensive ones too.
Users are advised to use their own discretion in stockbroker selection.
To close your trading account, you are required to follow a few basic steps. The stockbroker cannot levy any charges to close your demat account. To know the complete process, you can check out this detailed step by step guide to closing the Demat account.
What are the account opening charges at HDFC Securities?
As mentioned above, HDFC is a premium bank based full-service stockbroker brand and charges ₹999 for opening the trading account. Furthermore, the broker charges another ₹750 for maintaining your demat account with the broker as well.
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 charges ₹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.
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: