Free Intraday Trading (FIT) By Kotak Securities

The Indian stock markets comprise of 50-60 lac active traders/investors, some 20% of whom are self-directed traders who don’t use the services of dealers to buy and sell. Moreover, day by day, self-directed traders are increasing in the stock markets and intraday trading is a substantial part of their trading. In FY17 the self-trading segment grew from 21% to 29%.And brokerage cost per trade is the most important consideration in short term trading.

A while back, the full services, Kotak Securities came up with the Happy Day scheme, which is zero brokerage day once a week for all customers. This gave the company a spike in market share. Intraday average volumes went by 1.96 times ,of which self-trading volume went up by 1.24 times. Also from a regular day market share in cash segment of 4% their happy day market share rose to 6.16%. Given, the success of this scheme, and the fact that market surveys show that  a third of the active traders currently in the stock market would like to switch brokers and their new choice of broker is most largely influenced by brokerage costs, Kotak Securities has now launched a new scheme called Free Intraday Trading (FIT).

An average intraday self-trader spends 220 rupees on brokerage per day, approximately 5000 per month. For this segment, the Free Intraday Trading (FIT) plan is a huge savings in expenses, and thus increase in profits. For all a person has to do to subscribe to FIT is pay an annual subscription fees 0f Rs 999/- to do intraday trading of any value during the year and only a nominal brokerage of 1 paisa per scrip traded will be levied, along with all the usual statutory charges.

However, Free Intraday Trading (FIT) is only for self-generated intraday orders in Cash & Equity Derivative segments. A self-generated intraday order is one in which both the buy and sell leg of the order are placed by the client directly on the trading platform provided by Kotak Securities Ltd. So you can’t call n trade .In case you roll over your position, the trade would be seen as delivery based trade and a brokerage will be charged on such trades at higher rates as per your agreement with Kotak Securities.

FIT is open to Resident Indian customers having online trading accounts and franchisee clients having online accounts. This product is not applicable for ODIN Diet clients, NRI, QFI ,Currency derivatives & commodity trades, Super Multiple, Derivative plus & Option plus orders.

Here’s a pictorial summary of the plan:

FIT subscribers also get free intraday trading recommendations, real time research recommendations and news from a million sources, analysis of long /short built up for all derivative stocks and customized derivative strategies and automated chart analysis that helps to spot bullish or bearish trends.

Now if only Kotak Securities would look beyond active traders and conduct programs that walk first timers through the basics of intra-day trading, how to effectively use their in-house recommendations ,the danger signals to watch-out for and how to limit losses and basically hand-hold people through their first taste of success and thus make a real impact on addressing the fear and ignorance that keeps people from the stock markets.