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LKP Securities is a full-service stockbroker based out of Mumbai and has a presence in more than 2300 locations across 200 cities of India. Started as a securities brokerage house in 1948, LKP Securities is a listed public company that posted a net worth of ₹158 Crore for the FY 2016-17.
The broking house is ISO-9002 certified and provides a wide gamut of financial products and services to its clients.
Furthermore, it has been listed on the Bombay Stock Exchange (BSE) since December 2016. Such factors implicitly bring in the trust factor among potential investors towards a financial entity.
LKP Securities Review
LKP Securities has a membership with NSE, BSE, MCX-SX, NCDX and DGCX (Dubai) and allows its clients to trade across multiple segments including:
- Fixed Income markets
- Portfolio Management Services
- Commodity Trading
- Currency Trading
- Investment Banking
- Retail Distribution
- Mutual Funds
Thus, with this wide range of trading and investment products, LKP definitely builds a strong case for the client’s financial investment needs.
“LKP Securities has an active client base of 27,827 this financial year 2019-20. This scale of client base puts the broker among the middle-tier players in the industry.”
Mr MV Doshi, Executive Chairman, LKP Securities
LKP Securities Trading Platforms
Technology is one area where this full-service stockbroker lags quite a bit. All it’s trading platforms, be it the mobile app or terminal application, are around average in terms of performance and user experience. We will talk about all of these ones:
LKP Blue is a downloadable trading software that clients can download and install on their machines. It is highly suitable for heavy traders and is loaded with the following features:
- Funds transfers through a module – Paynetz
- Order entry and modification
- Multiple Market watch
- Squaring off provision
Here is the demo video playlist for further reference:
The application is relatively bulky and requires decent machine configuration for smooth trading experience. Furthermore, the user experience of the trading application is not that optimal yet and the broker definitely needs to work on this aspect to provide much better trading conditions for its clients.
Trade Smart LKP Mobile App
TradeSmart LKP is a mobile trading platform with LKP Securities. As shown in the screenshots below, the design is pretty bland to go with mediocre user experience.
Here are some of the features of the trading application:
- Live quotes for Equity, Currency and commodity markets
- Multiple market watch with personalization features
- Online Fund Transfers
At the same time, there are few concerns with the application as well, including:
- The low number of features making the overall trading experience for intermediate and experienced traders pretty limited.
- Tough to use interface and navigations
- Performance concerns with the app hanging at times.
Here is the Google Play store information for the mobile app:
|Number of Installs||5,000-10,000|
|Mobile App Size||37 MB|
|Negative Ratings Percentage||20%|
LKP Boss is a comprehensive service for clients of LKP Securities so that they can their back-office data as per their convenience. This service is available at any point in time of the day and thus, get complete transparent access to the back office service.
The system comes with the following features:
- Provision to access contract notes, daily transaction reports, financial reports etc
- You can filter and sort different columns as per your preferences
- Easy to use software
Thus, if you are looking to open your trading account with this full-service stockbroker, be wary of the fact that the trading platform is the area you will have concerns with, at times.
LKP Securities Research
The full-service stockbroker has segregated its research to make sure understanding the recommendations and tips are easy for users. In other words, it helps clients to avoid information overload. Then, depending on the kind of trading segment user is looking to trade or invest in, corresponding reports or recommendations can be picked up. In this case, this is how the complete segregation is done:
- Daily morning notes
- Monthly reports
- Company reports
- Yearly reports
- Derivatives daily
- Quarterly reports
- LKP Bytes
- Budget outlook
- Global outlook
- Economic outlook
- Mutual Fund
- IPO analysis
- Investment Banking
- Daily reports
- Performance tracking
- Performance reports (Daily, weekly, monthly, half-yearly)
- Power calls
- Daily reports
The reports are pretty exhaustive in nature and the accuracy of these recommendations are certainly better than the industry benchmarks.
These tips and calls are provided on a regular basis via multiple channels such as SMS, Email and within the trading platforms. You can also get it on Whatsapp if your relationship manager agrees to add you to the list.
Nonetheless, you are advised to perform your own analysis as well to validate and confirm the recommendations provided by the stockbroker.
LKP Securities Customer Care
The full-service stockbroker provides the following communication channels to its clients for customer support:
- Offline branches
- Toll-free number
- Email support
With limited communication channels opened up for service, LKP Securities does not seem to be very serious as far as servicing its clients is concerned. There is no process in place for turnaround time, no set up for personalized communication and the support staff seems to be under-trained as well.
Generally, users keep high expectations in customer support from full-service stockbrokers, but in this particular case, the broker has clearly missed the trick.
LKP Securities Pricing
Here are the different trading-related costs levied by LKP Securities:
LKP Securities Account Opening Charges
Clients need to pay the following charges during demat and trading account opening through LKP Securities:
|Demat Account Opening Charges||₹250|
|Trading Account Opening Charges||₹250|
|Demat Account Annual Maintenance Charges (AMC)||₹220|
|Trading Account Annual Maintenance Charges (AMC)||₹0|
With a lot of brokers providing provisions to users for a free demat account or annual maintenance charges or both, LKP Securities charges some bit of money at each account level. Beginner level users tend to spend less initially and these charges might be impacting LKP Securities to leverage that user segment.
LKP Securities Brokerage
Full-service brokers charge a specific percentage of your trade value as brokerage. For example, if the brokerage for delivery trades is set at 0.3% or 30 Paisa (in broker’s executive slang), then you are going to pay ₹300 per ₹1 Lakh worth of trade.
This has nothing to do with the fact that you make a profit or take a loss in that trade, you still need to pay ₹300 for that particular trade.
Here are the broker charges:
|Equity Options||₹50 per lot|
|Currency Futures||₹30 per lot|
|Currency Options||₹30 per lot|
|Commodity||₹30 per lot|
Although the broker has been around for a while, it has not been able to build a brand or rapport for itself that differentiates the broker from the rest of the players.
And, charging such hefty brokerage charges across segments (especially Equity) does not give a sense of value for money trading. In other words, looking at its brokerage, the broker stands at a very grim chance of recommendation.
Having said that, there is a definite possibility, these brokerage values can drop to 1/4th, 1/5th of the shown values as long as you start with a decent initial trading deposit and negotiate well with the executive before opening the trading account with the broker.
Use this LKP Securities Brokerage Calculator for complete calculation of charges and your profit.
LKP Securities Transaction Charges
|Equity (Cash & Delivery)||0.00325%|
|Equity Options||0.065%(on Premium)|
|Currency Options||0.065%(on Premium)|
|DP Transaction charge||₹25/Debit Transaction|
|Dial & Trade||₹0 per executed order|
Transaction charges levied by this full-service stockbroker are pretty expensive and over the range followed by other stock brokers. Thus make sure you negotiate well on these charges as well apart from the brokerage part as mentioned above.
LKP Securities Margin
Clients get the following leverage (or exposure) values while trading through LKP Securities:
|Equity||Upto 10 Times for Intraday, For Delivery upto 2 times|
|Equity Futures||Upto 2 times Intraday|
|Equity Options||Buying No Margin, Shorting upto 2 times for Intraday|
|Currency Futures||Upto 1.5 times Intraday|
|Currency Options||Upto 2 times Intraday|
|Commodity||Upto 2 times Intraday|
The full-service stockbroker provides okayish exposure at Equity Intraday level and below average in other segments. Thus, you have to be careful while making a choice of going ahead with this stockbroker, as long as you have expectations of relatively high exposure or leverage from your broker.
LKP Securities Disadvantages
Here are some of the concerns if you used LKP Securities as your stockbroker:
- Not much of innovation in trading platforms from such an old stock broking house, especially in the mobile trading segment.
- Customer service is okayish
“LKP Securities has received 15+ complaints this year 2019 already, converting to 0.04% of its total active client base. The industry average is o.01%, thus, the full-service stockbroker needs to improve its overall service to its existing client base.”
LKP Securities Advantages
At the same time, here are some of the merits in this full-service stockbroking house:
- Old stock broking house – so it is definitely one of the trusted brands in the business
- An array of trading segments open for clients
- One of the least complained about stockbroking houses.
Interested in Opening an Account?
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You need to provide a few documents to start your account opening process. The documents required are as follows:
- ID Proof
- 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.
For more information, you can check this detailed review on documents required for demat account.
LKP Securities Membership Information:
Here is the membership information of the broker with different exchanges and intermediate parties:
|Registered Address||203,Embassy Centre,Nariman Point,Mumbai - 400021|
The details can be verified from corresponding websites of the exchanges.
LKP Securities FAQs:
Some of the most frequently asked questions about this full-service stockbroker are discussed here:
Is LKP Securities a reliable stockbroker? Can I trust it?
Although LKP Securities claims itself to be one of the oldest stockbroking houses in the country when it comes to providing value to clients, the broker lags big time. Be it the trading platforms, customer service, exposure – the broker has a lot to improve in these aspects. On top of it, the brokerage charges levied are on pretty expensive too.
Thus, it will not be incorrect to state that LKP Securities is neither reliable nor trustable at this point in time.
What are the account opening charges of LKP Securities? What about the annual maintenance charges (AMC)?
In total, you will be required to pay INR 500 to open your demat and trading account with the broker (which is not cheap, especially looking at the competition poised by discount stockbrokers). Furthermore, you will be required to pay another INR 220 to maintain your demat account with the broker.
In total, the costs at the account level are almost similar to the industry average.
What are the brokerage charges of LKP Securities? How is the brokerage calculated?
This is where LKP Securities seems to be missing the trick. As seen, the values provided by the broker across different aspects are either at an average level or below average.
However, when it comes to costing, LKP Securities charges one of the highest brokerages across segments, especially at Equity Intraday and Delivery level.
For instance, equity delivery is charged at 0.5% brokerage which in other words means, for INR 1,00,000 worth of delivery trading, you will be required to pay INR 500 brokerage. Similarly, for intraday trading, the brokerage will be INR 50.
Looking at these values, LKP Securities can be seen as one of the expensive stock brokers in India and is certainly not a value-for-money stockbroker.
For more details, check out the ‘Pricing’ section above.
What is the quality of research provided by LKP Securities?
LKP securities deliver multiple types of research reports, recommendations and analysis to its clients at both fundamental and technical level. Furthermore, as far as accuracy is concerned, the stockbroker does a pretty good job in providing high-performance reports with consistent regularity.
For more details, check out the ‘Research’ section above.
How is the customer service of LKP Securities?
With limited communication channels and low-quality query resolutions, LKP securities provide below-average customer service to its clients.
For more details, check out the ‘Customer Service’ section above.
What trading and investment products I can use using the services of LKP Securities?
With LKP Securities, you can trade and invest in multiple financial products such as Equity, Commodity, Currency, Mutual funds, IPOs etc.
You can check out the comparisons of LKP Securities vs Other stockbrokers here:
LKP Securities Branches
The full-service stockbroker is present in the following locations across different states of India, including:
More on LKP Securities
If you wish to learn more about LKP Securities, here are a few references for you:
|LKP Securities Review|
|LKP Securities Hindi Review|
|LKP Securities Transaction Charges|
|LKP Securities Comparisons|
|LKP Securities Brokerage Calculator|
|LKP Securities Franchise|