IDBI Direct Review & Brokerage Charges

IDBI Direct Review

IDBI Direct Review 2020

Based out of Mumbai, IDBI Direct is a full-service stock broker, managed by IDBI Bank Ltd., a fully integrated financial services provider catering to the diverse needs of individuals, businesses and corporates. The stock broker came into action in the year 1993 and became a part of the online trading troop with IDBI Paisa Builder in 2006.

At present, IDBI Capital has a net-worth of around INR 3 billion and employs over 200 employees in 14 branches, spread over 14 cities across India.

The Retail Broking & Distribution segment of IDBI Capital offers online trading in Equities, F&O, Mutual Funds and IPOs, through the investing portal, www.idbidirect.in. It also distributes various Third-Party Products, such as Fixed Income Products, and Mutual Funds etc.

Alike any other full-service broker of India, IDBI Direct also boasts of a 3-in-1 Demat Account which contains a lot of features. With it, you can easily enjoy the benefits of a trading account and a demat account within a single identity. This also helps you avoid any kinds of manual fund transfer that is found to be quite complex.

According to the latest information, this stockbroker has an active client base of 42,401, which is not very impressive high but at the same time not poor. To help you gain a perspective, as per the same records, ICICI Direct has an active client base of 8,70,070.

The full-service stock broker allows its traders and investors to invest in following products:

  • Equity
  • Derivatives Trading
  • IPOs
  • Mutual Funds
  • NCDs
  • Bonds

Here is a detailed review of IDBI Direct, with an aim to provide you each & every detail about it in the most meaningful way.

Membership Information

The membership details of IDBI Direct are given below.

Entity Membership ID
SEBI Regn. Nos. NSE CM-INZ000007237
F&O INZ000007237
BSE CM-F&O INZ000007237
ARN No. ARN-0893
NSDL DP ID IN300079
CDSL DP ID 12084000

How to Open an account with IDBI Direct ?

When it comes to open a trading or demat account with IDBI Direct, the entire process is quite easy and quick. Being at the forefront of technological innovation, the stock broker provides multiple ways to open the account to its clients. Let’s find out them below.

  1. Online Instant Paperless Account Opening

IDBI features a quick paperless account opening process. To open an instant IDBI Capital trading & demat account, you would require:

  • PAN Card
  • Aadhar Card
  • Mobile number linked with Aadhar
  • Webcam for personal identification
  • Cancelled personalized cheque

Steps to open instant account are-

  1. Visit IDBI Capital’s company website. There is an ‘Open an Account’ tab on the top right side on the home page. Click on the link.
  2. On the next page, enter your name, email, mobile number, and city. An OTP will be sent to your number. Enter the OTP and verify.
  3. Click on ‘Apply Online’
  1. Visit IDBI Capital Branch Offices

IDBI Capital has a total of19 branches located across 14 major cities. One can visit any of these branch offices and complete the account opening process in the easiest possible manner.

  1. Download the form and submit

To download the trading and demat account opening form from the company’s website, you need to take the following steps-

  1. Visit the company’s website
  2. Click on ‘Customer Services’ on the top right-side menu
  3. On the page, click on ‘Forms’ on the right-side menu
  4. Download and print the form, fill in all the required details and attach supporting documents.
  5. Send the completed form to the company’s registered address or submit it at the nearest branch.

The online paperless account can be opened in not more than 15 minutes. For an offline paper-based application, it takes 7 working days from the date of receipt of the form to get the account activated.

Account Opening Charges

  • IDBI Capital Account Opening Charges (Trading Acct): Rs 500
  • IDBI Capital AMC Charges (Trading Acct): NIL
  • IDBI Capital Account Opening Charges (Demat Acct): NIL
  • IDBI Capital AMC Charges (Demat Acct): Rs 450

 

IDBI Direct – Trading Platforms

The full-service broker of India is known to be quick adopter of technology and the best part of them is that they have a full-fledged in-house technology team. This simply means that its trading platforms are quite user-centric and deliver utmost value to the investors and traders. The broker doesn’t come across the need to outsource any kind of technology job to other parties which results in faster and satisfactory query resolution.

  1. IDBI Power Pro

IDBI Direct Review

The trading platform has been designed keeping in mind the diverse trading needs of different types of investors and traders. Primarily designed for high frequency traders, the trading platform boasts of superb speed and performance in terms of reliability, features and stock analysis. As it is a terminal-based trading platform, it needs to be downloaded and installed on a computer system. After installation, you would need login credentials to make the use of the same.

The major features of IDBI Power Pro are:

  • Option to personalize market watchlists to watch specific scrips across industries. This could help investors save time while checking the same stock every time they login into the application.
  • Visual and audio-based notifications can be defined with specific conditions placed on stocks.
  • Different types of charts allow you to check stocks in the kind of display you prefer.
  • Order tracking available on a real-time basis.
  • Research reports, tips and recommendations across stocks at fundamental and technical levels are provided within the trading platform.

In order to make the software run without any hassle, you would need a PC with a minimum configuration like:

  • Minimum internet speed of 56 kbps
  • Windows 98/2000, XP, 7 or higher
  • Pentium 4 Processor or higher
  • 512 MB RAM or above
  1. IDBI Power Streaming

Power streaming

IDBI Power Streaming is basically a web-based trading application which can be easily accessed through any web-browser. With this, there is no need to download or install anything in order to use this application. Some of the features this browser-based trading application includes:

  • Capability to use up to 7 market watchlists in this web trading application with 50 scrips in each watchlist to track.
  • Single click order placement feature.
  • Real-time charting with color-coded price movements giving you a quick glimpse of the market/sector/stock momentum.
  • Hotkey function available for rapid analysis, order placement, feature browsing so that you get to waste minimal time while the stock price changes.
  • Market depth window that shows 5 top bids available at any given point in time.
  1. IDBI Power Classic

IDBI power classic is undoubtedly, one of the elementary trading applications available today in the stock broking industry. This application comes with the following features:

  • Live rates from NSE and BSE Stock exchanges
  • Option to add, update or cancel orders from the trading platform
  • As it is a web-based trading platform, it can be retrieved from anywhere without any dependence on the device you use for trading.
  • Various reports, ledgers, contract notes, account notes etc. available within the trading application.

This platform is primarily meant for beginner level traders and investors. An intermediate or a heavy level trader will find the number of features relatively limited.

  1. IDBI Direct Mobile App

IDBI Direct Review

Much gets clear from its name. This is basically a mobile-based trading platform which allows its clients the carry out trading right from their smartphone.

The app’s major features are:

  • Diverse market watchlists
  • Real-time market streaming of quotes from different exchanges
  • Different types of charts for market analysis at fundamental and technical levels.

Though the app is quite effective in its job, there are few concerns raised by the clients. They include:

  • Problems with the market watchlists watched on a persistent basis.
  • Discrepancy in the data displayed reported multiple times
  • Low update frequency cycle
  • Session expiry without any notification delivered

IDBI Direct Customer Care

The full-service stockbroker offers a number of communication channels such as:

  • Email
  • Phone
  • Offline Branches
  • Social Media

As it is a bank-based stock broker, the client’s expectations are quite high in terms of speed, reliability and performance.

The number of communication channels is surely restricted. In addition, a lot of firms use Google play store as one of the most widely used communication mediums since the feedback is direct and specific. However, none of the comments given to the mobile app of IDBI direct has fetched any response whatsoever.

It is extremely necessary for the stock-broker to put focus on increasing the number of communication channels. This would allow it to make a personal connect with its clients in the most meaningful way.

IDBI Direct Pricing

The brokerage charges and account opening charges by the stock broker are mentioned below.

Account Opening Charges

  • IDBI Capital Account Opening Charges (Trading Acct): Rs 500
  • IDBI Capital AMC Charges (Trading Acct): NIL
  • IDBI Capital Account Opening Charges (Demat Acct): NIL
  • IDBI Capital AMC Charges (Demat Acct): Rs 450

 

Brokerage Charges

IDBI Capital Brokerage Plan – Standard Plan
Segment Brokerage Fee
Monthly Fee (Fixed)
Equity Delivery 0.50%
Equity Intraday 0.05%
Equity Futures 0.05%
Equity Options Rs 100 per lot
Currency Futures NA
Currency Options NA
Commodity Futures NA
Commodity Options NA
IDBI Capital Brokerage Plan – Ace Trader Plan
Segment Brokerage Fee
Monthly Fee (Fixed)
Equity Delivery 0.10% to 0.50%
Equity Intraday 0.020% to 0.050%
Equity Futures 0.020% to 0.048%
Equity Options Rs 100 per lot
Currency Futures
Currency Options
Commodity Futures
Commodity Options

 

Demat Account Charges

IDBI Capital Depository Service Charges for Resident Retail Customers
Sr Particular Charges
1 Demat Flat Rs 5 per certificates
2 Demat Mail Rs 40 per transaction
3 Remat 20 per certificates
4 Market Sell 0.04% of the value of the scrip (Min Rs 30/-)
5 Off-market Sell Nil
6 Pledge Creation 0.02% of the value of the scrip (Min Rs 25/-)
7 Pledge Closure 0.02% of the value of the scrip (Min Rs 25/-)
8 Pledge Invocation 0.15% of the value of the scrip (Min Rs 25/-)
9 A/c Freezing / Defreezing Rs 100/-
10 Inter Depository Sell 0.04% of the value of the scrip (Min Rs 30/-)
11 AMC (IDBI-SB Customers) Rs 350/-
12 AMC (NON IDBI-SB Customers) Rs 2500/-
13 Service Tax Rs 0.103
14 Statement dispatch (On request) for NRIs Rs 900

 

Transaction Charges

Segment Transaction Fee
Equity Delivery 0.00325%
Equity Intraday 0.00325%
Equity Futures 0.0019%
Equity Options 0.051% on premium
Currency Futures NA
Currency Options NA
Commodity NA

 

IDBI Direct Margins

Trading Segment Margin IDBI Capital
Equity Delivery Nil
Equity Intraday Upto 4x
Equity Future Nil
Equity Options Nil
Currency Future Nil
Currency Options Nil
Commodity Future Nil
Commodity Options

 

IDBI Direct Research

IDBI Direct, being a full-service stockbroker, gives tips, research and recommendations to its clients across diverse communication channels. You can consult with the executive on your favored mode of communication including Email, SMS or WhatsApp.

Here are the various types of research and analysis products that are provided to the clients of IDBI Direct:

MORNING REPORTS

This is a regular level report that delivers stock picks for the day with target and stop-loss prices along with the analysis carried out by the research team of IDBI Capital. Users willing to do intra-day level trading can check these reports on a regular basis.

You can expect to get 3-4 tips on a daily basis in these reports along with the general expectation from the market momentum. However, at the outset, it is recommended that you carry out your own analysis on top of the tips given in these reports to gain some trust.

Investment Guide

This kind of report is also published on a regular basis with a detailed analysis done at stock level. Some of the areas included in Investment guide reports include:

  • Recommendation
  • Stock summary
  • Highlights and reason of investment
  • Financial Summary includes balance summary, Financial ratios, P&L statement etc.

On a daily basis, 4-5 reports are published on this level with similar level analysis.

Equities Face Sheet

This is a fundamental research-based report that is published once every month with a special focus on a particular stock. These reports are very lengthy and talk about broker recommendation, target price, investment period, return potential along with some specific financial metrics related to the company’s performance.

The analysis on the stock picked covers sectors like:

  • Macro as well as microeconomics events that impact the stock directly or indirectly
  • Company background
  • Technical overview of the stock

This type of research report is published on a monthly basis and therefore, if you are looking for a comparatively long-term investment, then these are the reports you must check for.

IDBI Direct distributes these research reports and recommendations to its clients and separately, this surely excites in the beginning. However, if you compare it with some of the other full-service stockbrokers with a detailed research focus, then you might find IDBI direct to be doing a satisfactory job.

IPOs

IDBI Capital offer IPO application services. Along with the application services, it also offers IPO research services wherein it provides detailed information on the upcoming IPOs.

IDBI Capital customers can use their demat account and apply for an IPO using the net banking facility of IDBI bank. This way the allotted shares will be credited to their IDBI Capital demat account.

Steps to apply in an IPO from IDBI Direct

  • Login into your trading account
  • Click on IPO Menu to find the list of active IPOs
  • Choose the IPO you want to apply from the list of available IPOs.
  • Choose the Demat account number and status.
  • Enter IPO bid details like quantity (lot size) and price under Option I.
  • To place multiple bids, enter the above details in Option II and Option III.
  • Click on submit.

Steps to Apply in an IPO using net banking ASBA

  1. Log in to your bank’s net-banking account.
  2. You may have to register as an IPO applicant for the first time.
  3. Visit IPO section of the website and Select the IPO you desire to apply.
  4. On the IPO page, enter the bidding details like price, number of lots etc.
  5. Confirm and submit the application.

In the ASBA service, the application amount is locked until the allocation of shares is done. The money is released in case the shares are not allotted.

Equity SIP

IDBI Capital offers 2 one of its kind of products EQUITY SIP and ENCASH to the clients.

  • EQUITY SIP- It refers to a Systematic Investment Plan wherein a fixed amount can be invested in chosen stocks every month. IDBI customers can choose from two types of SIP – Amount Based and Quantity Based-
    • Amount based SIP – With this, you can invest a fixed amount in stocks of your preference at a preset frequency and term. You can choose up to 10 scrips.
    • Quantity based SIP – This option enables investors to buy a specific number of shares of a company. You can choose up to 5 such scrips to purchase.
  • ENCASH- It enables customers to make the sales proceeds credited to their account on the trading day instead of general T+2 settlement day. The facility is available only on the shares available in the customer’s Demat account.

 

The Conclusion

IDBI Capital features 3-in-1 account wherein your trading, demat and bank account are associated with each other. You can link savings account maintained with IDBI Bank, HDFC Bank, Axis Bank, ICICI Bank, PNB, Vijaya Bank, OBC, Union Bank of India, Karur Vysya Bank & Lakshmi Vilas Bank with the trading account. However, to avail a 3-in-1 account, you must have a savings account with IDBI/HDFC Bank/Axis Bank/ICICI Bank.

On technology and brokerage perspective, IDBI Direct is quite impressive particularly on its trading platforms being offered. However, customer service is one area where the broker needs to be more focused. Right from improving the tone of voice to improving customer service touchpoints, there are various things that demand urgent focus of the full-service stock broker.

 

One thought on “IDBI Direct Review & Brokerage Charges

  • June 1, 2020 at 10:54 pm
    Permalink

    An interesting discussion is definitely worth comment. I think that you should publish more about this issue, it might not be a taboo subject but typically folks don’t speak about such subjects. To the next! All the best!!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *