Understanding Revised Fee Structure
At Kotak Securities, we have always believed in putting our customers first and being transparent with you about how we operate. That’s why we want to give you some insight into how brokers typically earn revenue and why we are making an important change.
A broker earns in several ways – through brokerage charges, transaction fees, and interest on products like margin funding. When we launched our Trade Free Plan back in November 2020, we were able to offer zero brokerage on intraday trades because our earnings from exchange-based fees and other services helped balance out the costs.
What is changing?
- Exchange Fee Structure Change: The exchanges have shifted from a slab-based transaction charge to flat fees. This change significantly decreases the money we generate from each transaction.
- SEBI’s New Rules for Derivatives: Starting November 20, 2024, SEBI’s new guidelines will increase the lot sizes in derivatives trading by 2-3 times. This change is expected to lead to a reduction in the number of orders placed.
To continue running a sustainable business and still provide you with the best possible service, we are making a change. Starting 4th November 2024, we’ll be charging brokerage on all intraday trades across segments.
But there’s also good news! We are reducing charges on several key services to make your investment journey even more rewarding.
- Trade Free Youth
Trade Free Youth clients currently subscribed to the Trade Free Youth plan will continue to enjoy the current plan until the end of their current subscription period. Post which the charges will be revised as below:
- Subscription fees: Reduced to ₹0
- Subscription period: Capping of 2 years has been removed
- AMC charges: Reduced to ₹0
- Stock Delivery charges: ₹0
- All Intraday Trades: ₹10 per order
- All Carry Forward F&O Trades: ₹10 per order
- Interest on Margin Funding (MTF): Reduced from 0.049% per day (17.88% p.a.) to 0.041% (14.99% p.a.)
For eg: Mr. X subscribed to the Trade Free Youth plan on 1st April, 2024, and will continue to enjoy the current plan till 31st March, 2025 (till the end of his 1st year of subscription). On 1st April, 2025, he will continue with the Trade Free Youth plan with the revised charges.
Miss Y subscribed to the Trade Free Youth plan on 1st April, 2023, and will continue to enjoy the current plan till 31st March, 2025 (till the end of her 2nd year of subscription). On 1st April, 2025, she will continue with the Trade Free Youth plan (with revised charges) instead of the Trade Free plan.
- Trade Free Plan
For clients subscribed to the Trade Free Plan on or before 31st August, 2024, the revised fee structure will take effect from 4th November, 2024.
For clients subscribed to the Trade Free Plan between 1st September, 2024, and November 3, 2024, the revised fee structure will be effective from 1st December, 2024.
- Stock Delivery charges: Reduced from 0.25% to 0.20%
- Carry Forward F&O Trades: Reduced from ₹20 to ₹10 per order
- All Intraday trades: ₹10 per order
- Interest on Margin Funding (MTF): Reduced from 0.049% per day (17.88% p.a.) to 0.041% (14.99% p.a.)
- Trade Free Pro
For clients subscribed to the Trade Free Pro plan on or before 31st August, 2024, the revised fee structure will take effect from 4th November, 2024.
For clients subscribed to the Trade Free Pro plan between 1st September, 2024, and November 3, 2024, the revised fee structure will be effective from 1st December, 2024.
- Subscription Fees: Remains as is at ₹ 249 + GST per month.
- Stock Delivery charges: Remains as is i.e 0.10%
- Carry Forward F&O Trades: Lowered from ₹20 to ₹10 per order
- All Intraday trades: ₹10 per order
- Interest on Margin Funding (MTF): Remains as is i.e. 9.69% per annum
Our goal is always to balance your costs and ensure a transparent, customer-first approach. These changes are vital for us to continue delivering the same level of service and competitive pricing you’ve come to expect from us.
We understand that changes to brokerage fees can feel unexpected. Please know that this adjustment is necessary to maintain sustainability amid evolving industry standards. If you have any questions or concerns, we’re always here to clarify and assist.
Thank you for your trust in us.
Team Kotak Securities