To make profitable investment decisions, investors seek brokerage services that align with their overall investing goals and one that can serve their educational needs and learning style.
For new investors especially, selecting the best online stock broker can mean the difference between an exciting new income stream and a frustrating loss-making disappointment.
IIFL
IIFL Holdings Limited (formerly India Infoline Limited) is an Indian diversified financial services company headquartered in Mumbai. Founded by Nirmal Jain, IIFL and its group of companies are backed by Prem Watsa (private equity firm in Canada) and CDC group (private equity arm of UK government).
It ranks among the top seven financial conglomerates in India. In terms of market capitalization, it ranks as the leading independent Indian financial firms.
Edelweiss
Based out of Mumbai, Edelweiss Broking Limited is an Indian financial services company. It is a subsidiary of Edelweiss Group founded by Rashesh Shah. The company is registered on NSE, BSE, and MCX stock exchange.
Edelweiss retail broking business offers facilities to invest in all major asset classes – equity, debt, mutual funds, IPOs, and derivatives. It also provides investment advice based on research and analysis.
How are they different from each other?
Let’s critically differentiate between IIFL and Edelweiss direct as follows:
Company Details
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Particulars
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IIFL
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Edelweiss
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Incorporation year
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1995
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2002
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Type of broker
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Full-service broker
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Full-service broker
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Supported exchanges
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NSE, BSE, MCX
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NSE, BSE, MCX, NCDEX
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Account type offered
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Investor plan (online plus).
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Edelweiss Lite.
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Product offering
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Equity, commodity, currency, futures, options.
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Equity, commodity, currency, futures, options.
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Other investment options
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Mutual funds, IPO platform, bonds, and debt, exchange-traded funds.
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Mutual funds, IPO platform, bonds and debt, exchange-traded funds and insurance.
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Additional features
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3 in 1 account, free trading calls, free research reports, SMS alerts, margin funding, and margin against share.
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3 in 1 account, free trading calls, free research reports, SMS alerts, margin funding, and margin against share.
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Differentiating IIFL and Edelweiss based on their brokerage plans and charges
*IIFL - Z20 and Edelweiss - Lite
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Particulars
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IIFL
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Edelweiss
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Basic charges
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Account opening
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Free
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Free
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AMC
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Rs. 250 per annum
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Rs. 300 per annum
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Call & trade charge
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Rs. 20 per order
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Rs. 20 per order
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Brokerage charges
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Equity delivery
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Zero
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0.01% on order value, up to Rs. 10
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Equity intraday
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Rs. 20 per order
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0.01% on order value, up to Rs. 10
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Equity futures
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Rs. 20 per order
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0.01% on order value, up to Rs. 10
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Equity options
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Rs. 20 per order
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Rs. 10 per order
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Currency futures
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Rs. 20 per order
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0.01% on order value, up to Rs. 10
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Currency options
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Rs. 20 per order
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Rs. 10 per order
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Commodity futures
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Rs. 20 per order
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0.01% on order value, up to Rs. 10
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Commodity options
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Rs. 20 per order
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-
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Margins
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Equity delivery
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4x as per exchange
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4x as per exchange
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Equity intraday
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20x as per exchange
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10x as per exchange
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Equity futures
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5x as per exchange
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10x as per exchange
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Equity options
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5x as per exchange
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0x as per exchange
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Currency futures
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2x as per exchange
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10x as per exchange
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Currency options
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1x as per exchange
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0x as per exchange
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Commodity futures
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3x as per exchange
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3x as per exchange
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Commodity options
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1x as per exchange
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-
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Transaction & Other Charges:
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|
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For equity delivery
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Transaction charges
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NSE – 0.00325%
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NSE – 0.00325%
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Demat transaction charges
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Sell-side, Rs. 18.50 per scrip
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Sell-side, Rs. 18.50 per scrip
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Clearing charges
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-
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-
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GST
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18% on brokerage + transaction + Demat
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18% on brokerage + transaction + Demat
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STT
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Rs. 100 per lakhs
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Rs. 100 per lakhs
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SEBI Charges
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Rs. 15 per crore
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Rs. 15 per crore
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For equity intraday
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Transaction charges
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NSE – 0.00325%
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NSE – 0.00325%
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Demat transaction charges
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-
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-
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Clearing charges
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-
|
-
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GST
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18% on brokerage + transaction
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18% on brokerage + transaction
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STT
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Sell-side, Rs. 25 per lakhs
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Sell-side, Rs. 25 per lakhs
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SEBI Charges
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Rs. 15 per crore
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Rs. 15 per crore
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For equity futures
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Transaction charges
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NSE – 0.0019%
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NSE – 0.0019%
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Demat transaction charges
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-
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-
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Clearing charges
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NSE - 0.0002%
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NSE - 0.0002%
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GST
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18% on brokerage + transaction + clearing
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18% on brokerage + transaction + clearing
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STT
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Sell-side, Rs. 10 per lakhs
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Sell-side, Rs. 10 per lakhs
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SEBI Charges
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Rs. 15 per crore
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Rs. 15 per crore
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For equity options
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Transaction charges
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NSE – 0.05%
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NSE – 0.05%
|
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Demat transaction charges
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-
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-
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Clearing charges
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NSE – 0.005%
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NSE – 0.005%
|
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GST
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18% on brokerage + transaction + clearing
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18% on brokerage + transaction + clearing
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STT
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Sell-side, Rs. 50 per lakhs
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Sell-side, Rs. 50 per lakhs
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SEBI Charges
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Rs. 15 per crore
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Rs. 15 per crore
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Commodity futures
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Transaction charges
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0.0026% non-agri
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0.0026% non-agri
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Clearing charges
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0.00%
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0.00%
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GST
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18% on brokerage + transaction
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18% on brokerage + transaction
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STT
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Sell-side, 0.01% non-agri
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Sell-side, 0.01% non-agri
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SEBI charges
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Rs. 15 per crore
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Rs. 15 per crore
|
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Commodity options
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Transaction charges
|
-
|
-
|
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Clearing charges
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0.00%
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0.00%
|
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GST
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18% on brokerage + transaction
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18% on brokerage + transaction
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STT
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Sell-side, 0.05%
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Sell-side, 0.05%
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SEBI charges
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Rs. 15 per crore
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Rs. 15 per crore
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Currency futures
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Transaction charges
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NSE – 0.0009%
BSE – 0.00022%
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NSE – 0.0009%
BSE – 0.00022%
|
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Clearing charges
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NSE – 0.0004%
BSE – 0.0004%
|
NSE – 0.0004%
BSE – 0.0004%
|
|
GST
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18% on brokerage + transaction
|
18% on brokerage + transaction
|
|
STT
|
-
|
-
|
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SEBI charges
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Rs. 15 per crore
|
Rs. 15 per crore
|
|
Currency options
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Transaction charges
|
NSE – 0.04%
BSE – 0.001%
|
NSE – 0.04%
BSE – 0.001%
|
|
Clearing charges
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NSE – 0.025%
BSE – 0.025%
|
NSE – 0.025%
BSE – 0.025%
|
|
GST
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18% on brokerage + transaction
|
18% on brokerage + transaction
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|
STT
|
-
|
-
|
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SEBI charges
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Rs. 15 per crore
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Rs. 15 per crore
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A quick look at the pros and cons
IIFL Pros:
- A full-service broker with branches all over India and abroad.
- Free research reports for equity shares and mutual funds.
- They accept FDs as collaterals for providing margin funding.
- A single platform for trading in equity, commodity, and currency.
IIFL Cons:
- Higher brokerage charges compared to others.
- Only regular plans in mutual funds are offered.
- Higher minimum brokerage compared to other brokers.
Edelweiss Pros:
- The full-service broker that offers discount brokerage plans.
- It uses flat rates per executed order across all trading segments in the Lite plan.
- Free research, tips, analysis, and recommendations.
- Customer convenience is enhanced by its physical presence through branches and franchises.
- Services like relationship managers and PMS are available.
Edelweiss Cons:
- Higher minimum brokerage in delivery, intraday, and futures.
- For an additional cost in the Lite plan, call and trade is available.
- They do not provide a platform for commodity options.
A look into what the customers think:
|
Particulars
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IIFL
|
Edelweiss
|
|
Charges
|
Rating – 2.7/5
- Higher charges in normal plan and flat brokerage in Z20 plan
- Free equity delivery in Z20 plan
- Negotiable charges in the normal plan for traders
- Dedicated RMs, free call, and trade in the normal plan
- For a subscription fee, TTIRIs is available
- Z20 plan attracts numerous petty charges
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Rating – 2.5/5
- Minimal brokerage charges with Lite plan
- Does not offer equity delivery
- Ancillary charges in the Lite plan are higher
- Exorbitant charges when switching from Elite to Lite plan
- The elite plan includes features like free call & trade, dedicated RMs, and hence its charges are higher than the Lite plan
|
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Usability
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Rating – 2.7/5
- The platform is feature-loaded but not easy to navigate
- Relevant market and trading updates available
- Online account opening process is easy & convenient
- Cumbersome and time-consuming offline procedure
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Rating 3/5
- POA form has to be physically submitted for verification in an otherwise easy online process
- Technologically advanced and easy to use the trading platform (TX3)
- Features like portfolio organizer (for analyzing portfolios) and guided portfolios (pre-created baskets) available
- Research recommendations available
|
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Customer Service
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Rating – 3.1/5
- Call and mail support available – prompt for the normal plan, delayed for Z20 plan
- Chat option available
- Tickets cannot be raised
- Presence of physical branches in most of the cities
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Rating – 3.7/5
- Both chat and mail support available
- No chat supports
- Lite plan users have been known to receive delayed responses
- Decent physical presence for customers to get their queries resolved
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Closing Remarks
IIFL and Edelweiss both have near-identical brokerage plans but differ greatly in their ease-of-use platforms and customer support. Both brokers harbour unique advantages and disadvantages. Investors should consider their investment goals and analyze which broker services best align with them.
This article provides an overall picture of the product baskets and features of these full-service brokers. For more detailed analysis, do visit Select by Finology.
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Happy Investing.