The credit of making online trading popular in India should definitely go to ICICIDirect. Because of their early entry into the online broking, they could reap the benefit by adding thousands of customers until they started feeling the heat from discount brokers. ICICIDirect is India’s biggest share broker providing wild range of Investment options to retails and Institutional clients. ICICIDirect was incorporated in 2000 from ICICISecurities which is one of the vertical of ICICI group, India’s top financial service provider.
ICICIDirect is the first broker in India to introduce `Digitally Signed Contract Note’ to its customers. As a result, the process of generating contract notes has been automated and the same would be instantly available to its customers in a safe and secure manner through the website.
ICICIDirect Brokerage Charges
ICICIDirect offer two types of brokerage plans to it customers.
1) I-Secure Plan
In I-Secure Plan you get a flat brokerage of fixed percentage on turnover. You don’t have to worry about any quarterly turnover levels as compared to I-Save plan as the brokerage is fixed. So of you are Investor or someone who rarely trade, this plan will be best suited for you. Go for this plan if your quarterly turnover is less than 50Lacs.
2) I-Saver Plan
In I-Saver Plan you get a variable brokerage slab based on your quarterly turnover. If you trade regularly and your quarterly turnover is more than 50Lacs, you can save lot on brokerage and this plan is for you.
Check out our handy brokerage chart with all the details at one place for your quick reference
ICICIDirect Minimum Brokerage Charges
ICICI charges minimum brokerage of Rs 35 per trade or 2.5% of the trade value whichever is lower. It is very crucial for you if you are a small investor or trader. Lets understand with the help of an example
Suppose you buy 3 shares of State Bank of India trading at Rs300. Your total traded value is Rs900 (3 X Rs300).
You will end up paying Rs22.5 (2.5% of Rs900). Now compare this with discount broker like Zerodha who charge you Rs20/trade or 0.01% whichever is lower. In your case you will be paying 9Paise! (0.01% of Rs900).
Now imagine you do day trade with the above conditions. Since you sell your positions at the end of the day, you will be paying 2.5% on sell side also resulting total brokerage of 5%. We have not considered the other taxes yet!.
If you are regular in market, you will understand why we are stressing much on this. For you to come out profitable, SBI should move more than 5% in a single day which is very unusual. This is the biggest disadvantage doing day trading with full service brokers.
Our team has designed a calculator to accurately calculate the ICICI Direct brokerage charges. Click here to access the Calculator.
ICICIDirect Trading Platform
ICICDirect offers two types of trading platforms
1) Share Trading Account
This is a web based account with which you can do all the basic trading and investing activities. You can use the features such as Margin trading, BTST, IPO Investment, Mutual fund investing, Customer support. This account does not suit for some one who would like to do technical analysis for trading.
2) ICICIDirect TradeRacer
Trade Racer is a power packed trading platform which provides an investor with live streaming quotes & Research Calls, integrated fund transfer system along with multiple watch list facility. It provides advanced charting tools and suits you if you are into Technical analysis. Trade Racer offers single order entry page for Equities and Derivatives, Technical Analysis, Integrated Fund Transfer System, Customized Interface, Intra-day and EOD Charts and Shortcut keys for faster access to markets are some of the key features of Trade Racer Terminal.
Trade Racer is free of cost if your monthly brokerage is more than Rs750, else you will be charged Rs75 for using Trade Racer.
Is ICICIdirect right for “YOU”?
The biggest advantage will be 3-in-1 account. The Demat, trading and savings accounts are integrated and provide seamless transfer of funds across all the accounts. You dont have to deposit any cheque or transfer fund to broker’s account. Few brokers expect you to send the screenshot of the fund transfer or the scanned copy of cheque through email to get it reflected in your name. you dont have to worry about all those in ICICIDirect. All the funds will be in your name and if you sell any investments, the money will be credited to your account. If you are someone who feel secure when everything is under your control, and hence prefer peace of mind over saving on brokerage, we advice you to go with ICICIdirect.
Like other full service brokers, ICICIdirect provides access to mutual funds, FD’s and IPOs. You can not expect this from a discount brokers.
ICICIdirect conducts online and class room kind of training classes. It will be helpful to you if you are new to market.
But we advice you to stay away from ICICIdirect if you are concerned about the brokerage cost. If you are a day trader as we already mentioned, you will be giving out huge chunk of your profit to ICICIdirect. Your account can turn red just because of the brokerage cost.
You can not use ICICIdirect if you don’t have savings bank account with ICICI Bank. So you are expected to open an SB account first. This is the cost of having 3-in-1 account.
If you are commodity trader, then ICICIdirect is not for you. It doesn’t allow you to trade in commodities.
Also Read : Top 10 Stock Brokerage Houses of India
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