HOME > BUSINESS > Are ‘truly free’ demat and trading accounts here in India with Finvasia?

Are ‘truly free’ demat and trading accounts here in India with Finvasia?

Finvasia, a technology-driven online broking start-up, announced that it has rolled out what it claimed was India’s first ‘truly’ free online demat account for investing in stocks and derivatives, including futures.

There have been many ‘free demat account’ providers in the past too, but such operators usually find some way or the other charge their clients.

The start-up, however, claims to be different and describes itself as the first player in India to offer “zero brokerage and zero clearing” charges.

“When you trade on the exchange, all it takes is an electronic message from the broker’s server to the exchange,” says Finvasia.

“That’s just how WhatsApp or email works. When you don’t have to worry about paying to deliver your WhatsApp messages or email, why should you worry about paying to have stocks delivered?”

DISRUPTION AHEAD?

Traditionally, stock brokers have had a system of dual charging — a basic monthly rental, plus a variable commission per trade.

The ‘free demat account’ providers generally got rid of the fixed fee, and opted to charge only the commission.

Within this segment, some moved from charging a fixed percentage — say 0.1% — of the value of the transaction to a flat fee per transaction.

The broker 5paisa.com, for example, charges a flat fee of Rs 10 per order.

It is this business model that Finvasia claims to be disrupting with its ‘Now’ service targeted at retail investors.

For now, free trading is possible only on the NSE, while BSE trading requires a premium plan under which each segment costs Rs 120 in terms of monthly rental.

Under the company’s retail-investor-focused Now product, trading can be done on the mobile app or using the PC and transactions can cover equity, derivatives, currency and mutual funds.

The Indian financial services industry is seeing massive disruption due to the emergence of digital technology.

While banks used to charge money for practically all kinds of transactions such as money transfers, new age payment banks such as Airtel Money and PayTM offer such services at zero cost due to the high-degree of automation achieved by them.

Traditional banks, on the other hand, have massive costs related to their legacy equipment and infrastructure such as branches, staff, ATMs and so on. This has led to competition and strife between legacy players and new-age players.

Besides the free offering, Finvasia also offers a ‘Nest’ product that is targeted at traders and costs more.

Finvasia claims that it is India’s first brokerage to offer “life-time commission-free trading in all segments on all exchanges”.

“Our mission is to democratize the financial markets and make the markets accessible to everyone by offering Zero Brokerage plans,” said Natty Virk, CEO & Co-founder of the VC-funded company.

“Investors are losing the amount they make from stock market appreciation in just commissions. And eliminating fees is one of the most effective ways to improve their trading profits and enhance their savings,” he added.

The company claims to offer several services such as asset management, investment banking, capital market advisory, currency hedging to brokerage services in commodities, equities, and derivatives.

To spur retail investors to sign on, the company also offers to complete all know-your-customer requirements using Aadhaar in five minutes.

Follow ULTRA.news
Reliance Capital-Nippon AMC IPO to raise Rs 1,500 cr Reliance Capital said the IPO of its subsidiary Nippon Life Asset Management will open on Oct 25 and close on Oct 27, with a price band of Rs 247 to Rs 252 per share.The offer will raise about 1,500 cr, out of which about Rs 600 cr will go to the company and the remaining w...
Prakash Industries to double production capacity in two years Prakash Industries, one of India's biggest PVC pipe manufacturers, said it has decided to double its production capacity over the next two years.The investment will be entirely funded from the company's internal funds."Over the (last 37) years, the company has enhanced i...
Adani Enterprises to demerge and list solar business Adani Enterprises Limited said it will demerge Adani Green Energy Ltd by cancelling the shares it holds in the subsidiary and issuing new shares directly to the shareholders of the parent company.Shareholders will get 761 shares of the new company for every 1,000 shares they...
Cyient ties up with US start-up to incorporate AI tech in power solution Mumbai-based IT services provider Cyient said it has signed an agreement to incorporate machine learning meter and voltage signature technology from US-based startup Elpis in its solutions for power utilities."Through this agreement, Cyient and Elpis will jointly pursue util...
India sees record-breaking Private Equity inflows in 2017 – Study The amount of money invested or committed by private equity firms in India reached an all time high in the first nine months of this year, said Venture Intelligence, a research firm tracking unlisted company financials, transactions and valuations.PE firms invested about $17...
Is Reliance Jio about to acquire Den Networks? Reliance Industries refused to deny or confirm media reports about its telecom unit Jio being in talks to acquire cable operator Den Networks.Shares of Den Networks, one of India's largest cable networks, are up 6.2%, having opened higher on the news."We are unable to co...
Worth Rs 70,000 cr, Patanjali’s Acharya Balkrishna named to India’s richest Acharya Balkrishna of Patanjali | WikipediaAcharya Balkrishna of Patanjali has emerged as the latest addition to the list of the top ten richest people in India, which is still headed by Mukesh Ambani, chairman of Reliance Industries.Haridwar-based Acharya Balkrishna, ag...
InterGlobe Aviation to raise Rs 2,530 cr by selling shares to institutions InterGlobe Aviation, the company that operates the country's largest airline Indigo said the company would raise Rs 2,530 cr by issuing fresh shares.At the same time, existing shareholders of the company would raise Rs 1,265 cr by selling some of their shares as well, the co...
Bajaj Finance offers 8.1% interest on FD to seniors, 7.85% to others Bajaj Finance said it will offer 8.10% on fixed deposits to senior citizens, making it among the highest interest rates offered on fixed deposits in the country. For others, it will be 7.85% per year.The non-banking finance company claims to have the highest credit ranking ...
Infosys included in Dow Jones Sustainability Index Infosys said it has been inducted into the Dow Jones Sustainability Indices (DJSI) and is now part of two of the indices -- DJSI World and DJSI Emerging Markets.The indices measure the economic, environmental and social performance of companies and are based on the companie...
Mumbai-based developer Capacite to raise Rs 400 cr in IPO Mumbai-based real estate developer Capacit'e Infraprojects has priced its initial public offer at Rs 245-250 per share.The company said it will open its Rs 400 cr IPO on Wednesday, Sep 13 and close it on Sep 15.Up to 50% of the issue will be allocated to institutional inv...
Wipro announces details of its Rs 11,000 cr share buyback Wipro has announced details of its buy back of up to 343.8 mln shares or about 7.06% of its total equity base at a price of Rs 320 each for up to Rs 11,000 cr.The Buyback Size is 23.15% of the fully paid-up Equity Share capital and free reserves as per the audited standalone ...
SBI, Canara Bank lead in opening unorganized sector pension accounts State Bank of India has opened the largest number of accounts under India's universal pension scheme for the unorganized sector, the government said today.State Bank of India has opened 51,000 out of the total 3.07 lakh pension accounts opened by banks under the scheme, whic...
SBI clears SB Life IPO, to sell 80 mln shares State Bank of India said it had decided to conduct an initial public offer for some of its shares in its insurance subsidiary SB Life Insurance. BNP Paribas Cardif S.A. would also sell some of its shares in the offer.It said the offer would involve 8 crore shares.No valua...
Mahindra Finance to raise Rs 2,000 cr via debentures Non-banking financial services company Mahindra & Mahindra Financial Services said it plans to raise Rs 2,000 cr by issuing debt instruments to the public.The non-convertible debenture issue will open on July 10.The NCDs carry a rating of IND AAA from India Ratings and BW...
JSW Steel to seek shareholder nod to raise 14,000 cr via debt, equity, FCCBs JSW Steel said it will seek approval from its shareholders to raise thousands of crores of rupees via debt and equity in the upcoming annual general meeting of the company."the Company had obtained the approval of members at the Annual General Meetings held on 26.07.2016 and ...
SBI raises Rs 15,000 cr in India’s largest QIP State Bank of India said it raised Rs 15,000 cr by selling its shares in a 'qualified institutional placement' or QIP, making it the largest such transaction in Indian share market history.QIP's usually involve selling shares exclusively to big institutions such as mutual fun...
Infosys denies promoter stake sale plans Infosys CEO Vishal SikkaIT services player Infosys again clarified that its promoters had no plans to bring down their stake in the company."Infosys would like clarify reports in the media speculating on plans of stake sale by the promoters," the company said in response...
RattanIndia Infra open offer soon after Laurel Energetics files bank guarantee Laurel Energetics, one of the six persons who are making an open offer for the shares of RattanIndia Infrastructure Ltd said the acquirers have submitted a bank guarantee of Rs 111.41 cr rupees for conducting the open offer.The bank guarantee was made a precondition for the ...
SBI opens QIP at floor price of Rs 287.58 State Bank of India said its committee of directors for capital raising has decided to start receiving bids a qualified institutional placement of its shares with a floor price of Rs 287.58 per equity share."The Bank may offer a discount of not more than 5% to the Floor Pric...
Google to train six more Indian start-ups in San Francisco Google has selected six Indian Startups for the fourth class of its 'Launchpad Accelerator' program, including RailYatri, RecipeBook and FastFilmz.In the six months program, they will undergo intensive mentoring from 20+ teams across Google and mentors from top technology...
Glaucus questions stock price of Hong Kong-listed Fullshare Holdings Ltd Glaucus Research Group, a California-based short seller, said it was selling Hong Kong-listed developer Fullshare Holdings due to peculiar trading patterns seen in the stock's counter."Fullshare is supposedly a commercial and residential property developer, but this business ...
Telcos Change Tack as Net Neutrality Fight Enters Final Round in India A campaign by Internet Freedom FoundationIf you thought the fight over net neutrality was over with the sending of 1 mln emails to the TRAI two years ago, think again.The telecom service providers, who lost out that in the first round, are back. This time, however, their...
US Fed unlikely to reverse quantitative easing this year: HDFC Securities US Federal Reserve BuildingBroking and financial firm HDFC Securities Ltd said it does not expect the US Federal Reserve to start sucking out the liquidity that it has infused into the global financial market in the last nine years any time soon.The comments came in the ...
Yes Bank denies billion dollar QIP rumors Yes Bank, one of India's youngest, and fastest-growing banks, said it had no plans to go for a billion-dollar qualified institutional placement of its shares as reported by the media.The bank had tried to do a mega share sale in September last year, but the effort didn't find...