IIFL Vs Edelweiss: Brokerage Comparison

11 Jan 2021  Read 848 Views

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

Particulars

IIFL

Edelweiss 

Incorporation year

1995

2002

Type of broker

Full-service broker

Full-service broker

Supported exchanges

NSE, BSE, MCX

NSE, BSE, MCX, NCDEX

Account type offered

Investor plan (online plus).

Edelweiss Lite.

Product offering

Equity, commodity, currency, futures, options.

Equity, commodity, currency, futures, options.

Other investment options

Mutual funds, IPO platform, bonds, and debt, exchange-traded funds.

Mutual funds, IPO platform, bonds and debt, exchange-traded funds and insurance.

Additional features

3 in 1 account, free trading calls, free research reports, SMS alerts, margin funding, and margin against share.

3 in 1 account, free trading calls, free research reports, SMS alerts, margin funding, and margin against share.

                                   

Differentiating IIFL and Edelweiss based on their brokerage plans and charges

*IIFL - Z20 and Edelweiss - Lite 

Particulars

IIFL 

Edelweiss 

Basic charges

Account opening

Free

Free

AMC

Rs. 250 per annum

Rs. 300 per annum

Call & trade charge

Rs. 20 per order

Rs. 20 per order

Brokerage charges

Equity delivery

Zero

0.01% on order value, up to Rs. 10

Equity intraday 

Rs. 20 per order

0.01% on order value, up to Rs. 10

Equity futures

Rs. 20 per order

0.01% on order value, up to Rs. 10

Equity options

Rs. 20 per order

Rs. 10 per order

Currency futures

Rs. 20 per order

0.01% on order value, up to Rs. 10

Currency options

Rs. 20 per order

Rs. 10 per order

Commodity futures

Rs. 20 per order

0.01% on order value, up to Rs. 10

Commodity options

Rs. 20 per order

-

Margins

Equity delivery

4x as per exchange

4x as per exchange

Equity intraday 

20x as per exchange

10x as per exchange

Equity futures

5x as per exchange

10x as per exchange

Equity options

5x as per exchange

0x as per exchange

Currency futures

2x as per exchange

10x as per exchange

Currency options

1x as per exchange

0x as per exchange

Commodity futures

3x as per exchange

3x as per exchange

Commodity options

1x as per exchange

-

Transaction & Other Charges:

 

 

For equity delivery

Transaction charges

NSE – 0.00325%

 

NSE – 0.00325%

 

Demat transaction charges

Sell-side, Rs. 18.50 per scrip

Sell-side, Rs. 18.50 per scrip

Clearing charges

-

-

GST

18% on brokerage + transaction + Demat

18% on brokerage + transaction + Demat

STT

Rs. 100 per lakhs

Rs. 100 per lakhs

SEBI Charges

Rs. 15 per crore

Rs. 15 per crore

For equity intraday

Transaction charges

NSE – 0.00325%

 

NSE – 0.00325%

Demat transaction charges

-

-

Clearing charges

-

-

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

Sell-side, Rs. 25 per lakhs

Sell-side, Rs. 25 per lakhs

SEBI Charges

Rs. 15 per crore

Rs. 15 per crore

For equity futures

Transaction charges

NSE – 0.0019%

NSE – 0.0019%

Demat transaction charges

-

-

Clearing charges

NSE - 0.0002%

NSE - 0.0002%

GST

18% on brokerage + transaction + clearing

18% on brokerage + transaction + clearing

STT

Sell-side, Rs. 10 per lakhs

Sell-side, Rs. 10 per lakhs

SEBI Charges

Rs. 15 per crore

Rs. 15 per crore

For equity options

Transaction charges

NSE – 0.05%

NSE – 0.05%

Demat transaction charges

-

-

Clearing charges

NSE – 0.005%

NSE – 0.005%

GST

18% on brokerage + transaction + clearing

18% on brokerage + transaction + clearing

STT

Sell-side, Rs. 50 per lakhs

Sell-side, Rs. 50 per lakhs

SEBI Charges

Rs. 15 per crore

Rs. 15 per crore

Commodity futures

Transaction charges

0.0026% non-agri

0.0026% non-agri

Clearing charges

0.00%

0.00%

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

Sell-side, 0.01% non-agri

Sell-side, 0.01% non-agri

SEBI charges

Rs. 15 per crore

Rs. 15 per crore

Commodity options

Transaction charges

-

-

Clearing charges

0.00%

0.00%

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

Sell-side, 0.05%

Sell-side, 0.05%

SEBI charges

Rs. 15 per crore

Rs. 15 per crore

Currency futures

Transaction charges

NSE – 0.0009%

BSE – 0.00022%

NSE – 0.0009%

BSE – 0.00022%

Clearing charges

NSE – 0.0004%

BSE – 0.0004%

NSE – 0.0004%

BSE – 0.0004%

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

-

-

SEBI charges

Rs. 15 per crore

Rs. 15 per crore

Currency options

Transaction charges

NSE – 0.04%

BSE – 0.001% 

NSE – 0.04%

BSE – 0.001% 

Clearing charges

NSE – 0.025%

BSE – 0.025%

NSE – 0.025%

BSE – 0.025%

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

-

-

SEBI charges

Rs. 15 per crore

Rs. 15 per crore

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

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

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 

Usability

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

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

Customer Service

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

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

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.

Stay Positive, Test Negative!

Happy Investing.

About the Author: Shrey Salwan | 43 Post(s)

Shrey Salwan is an MBA student at FLAME University, Pune, majoring in Marketing. He is also pursuing CA and CS. He is a creative thinker, a grammar nazi, and social media enthusiast seeking to work in the dynamic world of social media and content marketing to transform technical and digital information and processes into influential stories. He has a knack for telling stories and does so through his quirky way of writing.

 

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