It is a story of contrasting fortunes. Leading brokerage ICICIdirect.com has informed clients that starting April 1, 2019, it is discontinuing incentives linked to brokerage plans. On the other hand, some brokerages like Sharekhan are offering cashback on specific days (the latest was on NSE F&O trades done on March 14). Let’s find out more about these developments.
An incentive is a part of volume-based pricing where trades are initially charged at a normal rate and subsequently refunded based on the eligible volume slab. For example: on a Rs 20 crore turnover, the trades are charged at 0.05% brokerage and 0.03% is refunded as per incentive slabs monthly. “We would like to inform you that with effect from April 01, 2019, we would discontinue the incentives,” says an investor communique from ICICIdirect.com
However, the brokerage clarified that this change has no effect on pricing for investors who have not availed any incentives under this scheme in the last one year. For such investors, this communication is just a general practice of informing clients about any change in the brokerage options.
To lower brokerage rates, ICICIdirect.com has also asked investors to choose either ICICIDirect Prime or ICICIDirect Prepaid Brokerage.
With ICICIdirect Prime, an investor can get lower brokerage with the benefit of same day payout of funds of up to Rs 25 lakh when they sell their stocks in BSE. ICICIdirect Prime comes with an annual membership charge.
Here are the brokerage rates with respect to ICICIdirect Prime
|Prime Plan (Rs)||Cash||Margin||Futures||Options|
|900||0.45%||0.04%||0.04%||70 per lot|
|4,500||0.30%||0.03%||0.03%||45 per lot|
|9,500||0.20%||0.02%||0.02%||25 per lot|
With ICICIdirect Prepaid Brokerage plan, investor will get lower brokerage and a validity of 15 years and an option to exit after completing one year of subscription. The investor/client can also avail the benefit of same day payout of funds up to Rs 25 lakh when they sell their stocks in BSE.
Here are the brokerage rates with respect to ICICIdirect Prepaid Brokerage
|Prepaid Plan (Rs)||Cash %||Margin / Futures %||Options-(per lot)||Currency Futures %||
Currency Options-(Per lot)
Brokerage Sharekhan, now owned by BNP Paribas, recently did a cashback programme for all types of F&O trades placed using the Sharekhan app on March 14, 2019. In case you missed it, do keep a watch on the Sharekhan app offer notifications that keep on coming in. We are pretty sure any future cashback offers will be structured in a similar fashion.
The cashback programme featured up to Rs 7,500 cashback. The customer is allowed to withdraw the entire cashback amount.
To get the offer benefits, a Sharekhan investor’s NSO F&O order count can be a combination of orders placed on both futures and options. According to the order slab table, a Sharekhan client was eligible for a maximum of Rs 300 cashback or 30% cashback on brokerage amount generated, whichever is lower. So if you had generated Rs 1,200 brokerage you would get a maximum of Rs 300 cashback credited back into your ledger account. The maximum cashback you could avail was Rs 7,500.
Do, however, note, that as per the terms and conditions, you were eligible for cashback only if you had registered for the offer i.e. “Collected Offer”. Typically, one needed to register for the offer. Sharekhan terms it “Collect Offer” anytime after the offer is launched till the time the registration window is open. The registration window for the previous offer closed by 5 PM on the preceding day of the offer day. For example, the offer day was 14th March 2019, and the registration window closed by 5 PM on 13th March 2019.
The cashback amount would be credited within 30 working days from the date of trading to your Sharekhan ledger account. So, watch out for such day-specific offers to come your way.