No Brokerage Plan By Kotak Securities

Last updated on: April 13, 2022

No Brokerage Plan By Kotak Securities

Kotak Securities announced the launch of its “No Brokerage Plan” for all young traders under the age of 30 on Monday, March 21st, 2022, in order to attract young and first-time investors to the company.

All users under the age of 30 are eligible for no brokerage fees on delivery and intraday trades in the equities, currency, commodity, and futures and options categories. This plan, however, would be charged an annual fee of Rs 499 by the broker.

Discount brokers usually offer free delivery trades, but typically charge a fixed price for intraday and derivatives deals. This is ideal for folks who trade frequently and want to save money on brokerage fees.

The scheme is open to all self-directed investors and traders, according to the business. Those who trade through dealers or other service representatives will be charged the necessary brokerage based on the plans they choose. Clients that choose the “No Brokerage Plan” will also receive a vouche.

“We feel that the revised costs will provide greater value to the younger generation and will encourage them to participate more actively in asset development,” said Jaideep Hansraj, MD and CEO of Kotak Securities.

Zero Brokerage

Most brokers in India charge a commission on your trades. Brokerage is calculated as a percentage of the trade’s turnover (for all items except options). It’s normally computed on a fixed brokerage amount per lot when it comes to options (for example, Rs. 100 per lot). We’ll walk you through numerous instances to help you understand what zero brokerage implies.

An illustration of a trade with a brokerage:

 Consider the case of a broker who charges 1 paisa each intraday (MIS) equity trade and 10 paisa per delivery trade. Assume you’ve entered the following two trades:

  • Purchase 1000 Reliance Equity shares for Rs. 960 each.
  • During the same day, sell 1000 shares of Reliance Equity for

In this example, the brokerage fee would be

(1000*960) * (0.01%) + (1000*970) * (0.01%) = Rs.193 brokerage charges

No-brokerage trade as an example:

 Now consider the identical scenario with a flat pay-per-trade, 0% brokerage arrangement.

Assume your broker charges a fixed fee of Rs. 20 per trade, and you made the same two trades as before. Your total fees would be Rs. 40 because you made two trades.


 This brokerage approach has a lot of advantages.

  • You don’t have to worry about the magnitude of your trade with a zero brokerage model.
  • Your break-even point is lower under a zero brokerage This raises the likelihood of a profitable trade.
  • You’ll never have to worry about how big or small your trade is
  • Zero brokerage has that kind of power! Don’t be afraid to question your broker how much brokerage you’re paying, since you might want to consider moving to a broker that doesn’t charge any.

Zero Brokerage Plan and Fixed Monthly Brokerage plan – Difference

 For a predetermined monthly charge, unlimited trading plans provide a really limitless number of brokerage-free trades in a particular segment.

These plans, also known as Zero Brokerage Unlimited Plans, allow you to make an unlimited number of trades in a month based on volume or size. In this arrangement, the broker does not charge a per-trade or volume-based commission.

This Fixed Monthly Brokerage Plan operates similarly to a monthly bus or train pass, allowing you to take unlimited rides on a specific route for a set monthly charge. A trader can make as many trading transactions as he likes with limitless trading plans.

In unlimited trading plans, brokers charge a monthly fixed price per segment and per exchange. So, if you want to trade stocks and currencies, you must pay for each component separately. You must also pay additional fees if you intend to trade on both the NSE and the BSE. This plan’s monthly price varies from broker to broker.

No brokerage trading strategies are suited for:

  • For active traders who trade
  • Traders with a high volume of trades and a high trading
  • Traders who make many deals in a single

Brokerage Charges and the Stock Market


When trading in the stock market, it is critical to understand the various costs, including brokerage charges, and how these charges are calculated. After you’ve opened a Demat Account and a Trading Account, you’re ready to trade in the stock market. But keep in mind that you should always trade through a broker. You may now use online brokerage platforms thanks to the internet.

Brokerage charges are the fees that brokers charge for providing their services. These fees are not uniform and frequently differ from one broker to the next. It also depends on the type of business you conduct. Stockbrokers’ brokerage slabs are frequently dynamic, and regular clients benefit from lower brokerage rates.

The brokerage is based on a percentage of the total cost of purchased or sold shares. You will be charged for intraday trading and delivery in this case. Let’s have a look at both concepts:

Intraday Trading: Intraday trading occurs when a trader buys and sells stocks on the same trading day.

  • Intraday trading is defined as buying and selling shares before the end of a trading day’s trading session. Intraday trading fees can range from 0.01 percent to 0.05 percent of the volume/amount transacted, depending on the brokerage.

Delivery: When you opt to keep your stocks, you will be charged for delivery.

  • For as long as you desire, you can keep your stocks in line with market Delivery fees range from 0.2 percent to 0.75 percent of the total transaction volume.
  • This charge is calculated by multiplying the delivery charges by the number of shares and their current market price.

Charges That Comprise Net Trading Cost

Other fees are paid in addition to brokerage fees, depending on the type of financial instrument, which add up to your overall trading cost. These are the following:

Stock exchanges, such as the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and others, levy transaction fees, often known as exchange turnover fees.

Securities Transaction Fees: These fees are assessed based on the value of the securities being traded.

Commodities Transaction Charges: These are a tax on commodity derivatives.

Stamp Duty: The state government levies a fee for executing securities transactions.

GST (Goods and Services Tax): This is an 18% tax levied by the union government on transaction and brokerage fees.

SEBI Turnover Fee: The stock market regulator, SEBI, charges a fee for dealing in all forms of securities except debt securities.

As a result, stockbrokers calculate brokerage fees as a proportion of trading volume. To invest in the stock market, choose a reputable financial partner who can provide you benefits such as a free online Demat Account and trading account. Always seek for perks, such as brokerage cashback and reductions on your online Demat Account’s Annual Maintenance Charges (AMC). Always choose a financial partner that offers a variety of equity brokerage plans, such as the Variable Brokerage Plan (VBP) and the Value Added Subscription Plan (VASP) (VAS).

Kotak Securities – The Bottom Line


The Kotak Mahindra Bank’s Kotak Securities is a well-known stock broking, trading, and investment service. The Bombay Stock Exchange and the National Stock Exchange of India have both accepted it as a corporate member. It has been in operation since 1994, with headquarters in Mumbai.

They have a large number of users each year and offer a lot of popular services. It has more than 1000 offices spread across India. They also run a highly profitable internet trading and investing platform.

Now for consumers under the age of 30, Kotak Securities has developed a ‘No Brokerage Plan.’ Such customers will not be charged a brokerage fee on

transactions such as delivery trades and intraday trades in the equities, currency, commodity, and futures and options segments under this arrangement.

Customers of Kotak Securities can enrol in the plan for Rs.499 per year. After onboarding, those who choose this plan will receive vouchers worth Rs.1,998. The proposal will also include research insights from the broking firm’s analysts.



Que.1 How Frequently Will You Trade?

Ans.    If you plan on actively trading, performing numerous deals each week or day, you should look for a brokerage that charges cheap transaction commissions.

Trading costs and commissions are less of a problem for buy-and-hold investors (those who do not trade regularly).

Que.2 What Does It Mean to Have a Good Customer Experience?

Ans. Some brokerages have more user-friendly websites and provide better customer care than others. Some customers may not mind if the website is more difficult to use or if customer service is only available during particular hours as long as they can trade for low fees. A solid customer experience can make a major difference in the investment experience for investors who aren’t tech savvy.

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