Kotak Securities Vs ICICI Direct: Brokerage Comparison

12 Jan 2021  Read 1298 Views

They say earning money is easier than saving and making it grow. Generally, investors are faced with two major dilemmas with regards to their investment decisions:

  • Choosing an appropriate investment strategy to grow their wealth and
  • Choosing the right broker or mediator to implement those investment strategies.

Sure, choosing an investment strategy is challenging, but choosing the right broker is even more difficult. A lot is at stake. You're giving your money to a broker and depending on them to make investments on your behalf and reap gains on such investments. And trust is one luxury people find it difficult to afford these days.

We are writing these blog articles to help the investors in choosing the appropriate brokers. In the follow-up to our previous article on Zerodha vs Upstox, we look into Kotak Securities vs ICICI Direct today.

Kotak Securities

Kotak Mahindra Bank's subsidiary, Kotak Securities Limited, was founded in 1994 to offer stockbroking services and distribute financial products in India. It is a full-service broker. Known as an innovator in the industry, Kotak Securities was the first to provide margin financing to its customers and enable investing in IPOs and mutual funds on the phone. 

Their broking app allows the customers access to markets across various platforms, mobile devices, and tablets, allowing the registered and guest users to view live prices, track portfolios, and trade.

ICICI Direct

ICICI Direct is one of the largest retail broker and financial products distributor in India, which has revolutionized the world of online investing. It is an online share trading platform that provides seamless and hassle-free electronic trading. 

ICICI Direct offers more than fifty products and services, which include (but are not limited to) mutual funds, derivatives, ETFs, insurance, and tax services. ICICI directly stands apart from its competitors because of its unique research desk that offers various research-based products designed to meet different investors' investment needs. Since its inception, the ICICI direct research teams have had a 75% strike rate.

How are they different from each other?

Let's critically differentiate between Kotak Securities and ICICI direct:

Company details:

Particulars

Kotak Securities

ICICI Direct

Incorporation year

1994

2000

Type of broker

Full-service broker

Full-service broker

Supported exchanges

NSE, BSE, MCX, NCDEX

BSE, NSE

Account type offered

Fixed brokerage plan

3-in-1 account (I-secure plan)

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 and insurance

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 Kotak Securities and ICICI Direct based on their brokerage plans and charges

*Kotak - Cash Back and ICICI - Prime

Particulars

Kotak Securities

ICICI Direct

Basic charges

Account opening

Free

Free

AMC

Rs. 600 per annum

Rs. 700 per annum

Plan charges

Rs. 1179 per annum

Rs. 299 per annum

Call & trade charge

Rs. 50 per order

Free

Brokerage charges

Equity delivery

0.39% on order value

0.75% as low as 0.15%

Equity intraday 

0.04% on order value

0.25% as low as 0.009%

Equity futures

0.04% on order value

0.03% on trading value

Equity options

0.01% on order value, up to Rs. 300

Rs. 20 per order

Currency futures

0.04% on order value

Rs. 20 per order

Currency options

0.03% on order value, up to Rs. 15

Rs. 20 per order

Commodity futures

0.025% on order value, additional Rs. 250

Rs. 20 per order

Commodity options

0.049% on order value, up to Rs. 25

Rs. 20 per order

Margins

Equity delivery

2x as per exchange

2x as per exchange

Equity intraday 

2x as per exchange

7x as per exchange

Equity futures

2x as per exchange

4x as per exchange

Equity options

1x/50x – Buy: 1x, Sell: 50x

4x/2x – Buy: 4x, Sell: 2x

Currency futures

2x as per exchange

4x as per exchange

Currency options

1x/50x – Buy: 1x, Sell: 50x

0x as per exchange

Commodity futures

2x as per exchange

2.5x as per exchange

Commodity options

2x as per exchange

0x as per exchange

Transaction & Other Charges:

 

 

For equity delivery

Transaction charges

NSE – 0.00325%

BSE – 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

STT

as per exchange

Rs. 100 per lakhs

SEBI Charges

Rs. 15 per crore

Rs. 15 per crore

For equity intraday

Transaction charges

NSE – 0.00325%

BSE – 0.00325%

NSE – 0.00325%

Demat transaction charges

-

-

Clearing charges

-

-

GST

-

18% on brokerage + transaction

STT

0.10%

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%

GST

-

18% on brokerage + transaction + clearing

STT

0.025% - sell side

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%

GST

-

18% on brokerage + transaction + clearing

STT

0.01% - sell side

Sell-side, Rs. 50 per lakhs

SEBI Charges

Rs. 15 per crore

Rs. 15 per crore

Commodity futures

Transaction charges

MCX – 0.0026%

NCDEX – 0.0006%

0.0026% non-agri

Clearing charges

-

0.00%

GST

18% on brokerage + transaction

18% on brokerage + transaction

STT

Sell-side, 0.01%

Sell-side, 0.01% non-agri

SEBI charges

Rs. 15 per crore

Rs. 15 per crore

Commodity options

Transaction charges

Waived off

-

Clearing charges

-

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%

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 – 0.035%

BSE – 0.001%

NSE – 0.04%

BSE – 0.001% 

Clearing charges

-

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 Look at the Pros and Cons

Particulars

Kotak Securities

ICICI Direct

Pros

  • Wide range of investment options.
  • Daily alerts, market pointers, research reports, stock recommendations, etc.
  • PMS services & foreign investment.
  • NRIs can open accounts with Kotak Securities.
  • Valid till cancelled (VTC) option allows the customers to place buy or sell order limits which remain valid for 45 days.
  • Offers intensive research-based financial advice on almost all asset classes.
  • Free of cost provision of technical and stock tips and analysis to customers.

Cons

  • Higher account opening charges compared to other full-service brokers.
  • Huge variance in call and trade charges with the frequency of investing.
  • Minimum account to be compulsorily deposited to open an account.
  • Higher brokerage charge – to subvert these charges, customers are required to subscribe to ICICI Direct Prime or prepaid brokerage plans.
  • The minimum brokerage charged under the I-secure plan is high for irregular traders.
  • Higher brokerage for traders who trade in penny stocks.
  • Higher charge for call & trade (after the first 20, free calls in a month).

What do Customers Think?

Particulars

Kotak Securities

ICICI Direct

Charges

Rating – 3/5

  •  Low brokerage charges.
  • Higher equity delivery charges.
  • Various tools & services with premium plans are a plus.

Rating – 2.5/5

  • Low brokerage charges available at extra charges and conditions.
  • Higher equity delivery charges.
  • Minimal call & trade charges with unlimited order placing facilities.

Usability

Rating – 2.8/5

  • User-friendly platform & easy to navigate.
  • Easy account opening process.
  • Time-consuming offline process.
  • Limited bank support for online process.

Rating – 3/5

  • User-friendly platform & easy to navigate.
  • Free trade calls & research reports via mail.
  • Single platform for FDs, insurance, home loans.
  • Well organized educational content for beginners.

Customer Service

Rating – 3.5/5

  •  Excellent call and email support.
  • Prompt customer support.
  • Automated chat and option to raise tickets.
  • Presence of physical branches in various cities.

Rating – 3.5/5

  • No chat support and no option to raise tickets.
  • Prompt customer service responses over call and mail.
  • Dedicated RM provided to all the customers.

                                      

Closing remarks

Kotak Securities and ICICI Direct both have their pros and cons. Kotak Securities has been around for over 25 years and is known for its prompt customer service. On the other hand, ICICI Direct is known for its well-researched tips and analysis.

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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