ICICI Direct, a retail trading business, offers the investment services provided by ICICI Securities. The brokerage firm of ICICI Bank is a technology-driven, open conciliator that provides a vast array of financial trading services to traders and investors across the nation.
This article focuses on the numerous items and services offered by each organization, as well as the different brokerage fees and taxes they impose, and the online trading platforms each company makes available to its consumers.
About ICICI Direct
What better site to start this journey than ICICI Direct, a high-tech trading platform and resource for the Indian populace? The retail stock brokerage business offers an extensive array of trading and investment opportunities.
ICICI Securities belongs to ICICI Group. Over 20,000,000 individuals utilize ICICI Direct to have access to the brokerage’s services.
On their website, you may engage in online trading of equities, fixed deposits, bonds, derivatives, NCDs, wealth products, and mortgages.
ICICI Direct.com, India’s premier investing website, receives a huge number of monthly visits. It provides an ICICI Bank Account, an ICICI Demat Account, and an ICICI Trading Account for retail investors in India’s stock market.
Investing in a range of financial instruments with one of the Best Stock Brokers is easy and efficient. Any ICICI Bank branch or ICICI Direct office offers in-person customer support.
With ICICI Direct, both deposits and withdrawals are quick and simple.
Pros and Cons of ICICIdirect
Benefits of ICICI Direct
The following are some advantages of ICICIdirect: Before signing up for an ICICIdirect account, you should be aware of its benefits and drawbacks. Discovering the pros and cons of ICICIdirect will assist you in determining whether or not it meets your investment needs.
- A three-in-one account combines your bank, brokerage, and demat accounts into one. ICICI accounts are easily integrated with one another. Therefore, ICICI stands out as the most fascinating player in the online trading industry. There is no need for any sort of physical intervention. Here, online commerce is a possibility.
- Unlike other Indian online trading businesses that need money transfers to the broker’s pool or deposits, ICICIDirect.com allows you to keep your own demat and bank accounts. The sale earnings are put into the customer’s bank account as soon as ICICIDirect gets them.
- Investing in IPOs, mutual funds, GOI bonds, and post-office savings programs is possible through a single website. ICICI Lombard furthermore provides General Insurance products.
- The BSE and NSE both provide trading possibilities.
- If you have a slow Internet connection or wish to trade from a mobile device, you can utilize a low bandwidth website.
- Using the VTC Feature, customers can place 45-day valid buy or sell limit orders (Valid Till Canceled).
Drawbacks of ICICIdirect
The disadvantages of ICICIdirect are listed below. ICICIdirect has compiled a list of its drawbacks.
- The brokerage price levied by ICICIdirect is rather high and is not negotiable. Prepaid brokerage programmes and ICICIdirect Prime are two techniques for reducing brokerage expenses.
- Regularly, ICICI’s I-Secure Plan minimum brokerage fee is Rs 35 per trade, which is too expensive for traders who execute only a handful of tiny transactions.
- For shares with a market value of at least Rs.10, the broker’s commission remains at Rs.0.05 per share. Consequently, trading in penny stocks is incredibly difficult.
- After the first twenty free monthly calls, ICICIdirect charges Rs 25 each for call and trade.
Why open an ICICI Direct trading account?
To trade stocks or derivative-based assets within Indian territory, a Demat or Trading Account is required at a minimum, according to the Indian government and several rules governing the country’s larger wealth trading activity.
Keep in mind that there are many more compelling reasons to register with ICICI Direct as a trader or investor.
Having a trading account with ICICI Direct provides the following benefits:
- Banking, brokerage, and depository services are bundled into a single package.
- Depositing funds into a broker’s pool or a customer’s account is required by the majority of online trading companies in India. ICICI Direct, on the other hand, enables you to manage both your demat and bank accounts online at ICICI Direct.com.
- IPOs, GOI Bonds, Mutual Funds, and Postal Savings Schemes may all be bought online via a single website.
- General insurance coverage is provided by ICICI Lombard.
- The BSE and NSE both provide trading possibilities.
- Low-bandwidth websites may be utilized by users with slow Internet connections or mobile devices.
- Through the myGTC options, it is possible to buy or sell limit orders in equity scripts.
Key Attributes of ICICI Direct
- Comprehensive agent The pioneer in introducing a digital trading platform and electronic contract notes.
- It has around 1500 offices throughout India and subsidiaries in foreign nations, making it one of the largest enterprises in the country.
- Through the “eLearn Portal,” “Webtorial,” and other available educational tools, several online lectures and videos have been developed to assist investors and traders in understanding the fundamentals of the market.
- After Zerodha, ICICI Direct has over 2 million clients, making it the second-largest discount broker in India.
- The brokerage programs are customized to meet the demands of each investor or trader, whether they are casual investors or seasoned professionals.
- Due to their vast product and service offerings, they have risen to the top of the financial services market.
- They introduce a new feature, product, or service each year, such as robot-based research and consulting services.
How to transfer shares in ICICI Direct from other Stock Brokers?
ICICI Direct’s investment and trading products provide several advantages that must not be disregarded. The broker enjoys some of the biggest benefits. If you have worked with other brokers, you should not fear.
To transfer shares from another brokerage firm to ICICI Direct, only adhere to the standard requirements. ICICI Direct accepts share transfers in two methods from other stockbrokers:
Use the DP Debit Instruction Slip (DIS) booklet in offline mode (Depository Participant). Each share you intend to transfer to ICICI Direct is required to have an ISIN number.
To proceed, please supply your Debit Instruction Slip (DIS) booklet containing your ISIN and Target Client ID (e.g., ICICI Direct). Wait for the form to be accepted after submitting it to the specified website.
Online Mode: NSDL and CDSL are two well-known Indian Depository Participants who may let you transfer shares to ICICI Direct online.
Start by visiting the authorized Depository Participants’ websites. Fill out the form on the DP’s website and submit it as soon as possible.
If the submitted information is wrong, the request may be denied; thus, carefully verify.
ICICI Direct Brokerage Arrangements
Clients of the full-service brokerage can select from a variety of programs, each with its own brokerage structure. These include
ICICI has introduced the ICICIdirect Neo zero-brokerage program. ICICI Direct Neo is a revolutionary trading technique that focuses on traders and provides unlimited trading with no commissions on futures transactions and a fixed order charge of Rs. 20 for Margin and Options trades.
In addition, users of ICICIdirect Neo will have access to a number of innovative new services, such as Instant Liquidity, which enables customers to get cash within 30 minutes after selling stocks according to their chosen plan.
Using this approach, you can determine how much money you will earn over the following three months. There are several pricing ranges, ranging from 25 Lakhs to 5 Crore. If you earn more money, you will pay the broker less (across segments).
Under this plan, a fixed commission rate applies to all of your trades, and profits are not guaranteed. Prior to opening an account, it is prudent to discuss the brokerage costs and how they may impact your future trading.
Prepaid Brokerage Plan
In accordance with this brokerage agreement, an investor is obligated to make an upfront payment to the broker. Commissions on transactions are proportional to the amount of money spent. This amount will have your trade commissions automatically deducted. When the initial investment is exhausted, recharging commences.
You may pick from one of these plans or another, depending on your preferences.
Opening and Demat Fees for ICICI Direct Trading Account
For electronic storage of securities, a Demat (short for “dematerialization account”) account is used, and the securities are lodged with NSDL or CDS Limited (CDSL).
Account-opening costs may range from zero to a maximum of Rs. 200, depending on the broker. ICICI Direct does not charge a fee to open an account.
A Demat account is accompanied by a variety of costs, including account maintenance fees, broker commissions, and taxes. There are around Rs.300 in AMC (Annual Maintenance Charges), and the discount broker normally charges Rs.20 for each executed transaction as compensation.
When it comes to keeping assets like stocks, bonds, and ETFs, the Indian government has registered both CDSL and NSDL as depositories. Various brokers utilize either of the two types of depositories. ICICI Direct uses NSDL and CDSL as its depository.
ICICI Direct Brokerage Fees for Stocks
The investor must additionally pay for other services supplied by the broker, including AMC fees.
There are equity delivery fees, which signal that you must hold the stocks in your Demat Account for a certain amount of time prior to selling them for a profit. In order to attract more customers due to the intense competition in this industry, the majority of brokers offer equity delivery for free, while some charge as much as Rs.20 each transaction. ICICI Direct costs 0.55 percent for equity delivery.
As the name suggests, to engage in intraday trading of equities, one must buy and sell stocks/shares on the same day. For intraday equity trading, ICICI Direct charges a fee between 0.03 percent and 0.05 percent.
Equity futures refers to the opportunity to buy and sell stocks at a predetermined price in the future. ICICI Direct charges between 0.03 and 0.05 percent for equity futures transactions.
Equity options are contracts that let investors buy or sell stocks at a specified price, known as the “strike price.” ICICI Direct’s per-lot fees for equity options range from Rs. 35 to Rs. 95.
Brokerage fees for ICICI Direct Foreign Exchange
Currently, India is home to a multitude of inexpensive brokers. Although not all of them trade stocks, currencies, and commodities. Some of the finest performers do, however, charge additional fees for their services in these areas.
It is also known as an FX future or a foreign exchange forward. The option contract to exchange one currency for another at a preset future date and a predetermined precise or fixed price is exactly what it sounds like: a buy-and-sell futures contract. This concept is closely associated with equity futures. ICICI Direct’s fees for currency futures range from 0.03 to 0.05 percent.
If you are interested in learning more about currency options and how they differ from stock options, we have compiled this information to assist you grasp the distinction. ICICI Direct’s fees for currency options range from Rs. 10 and Rs. 35 per lot.
Commodities ICICI Direct Brokerage Fees
Traditionally, commodity trading is defined as the buying and selling of raw materials or primary agricultural goods. This is a regular occurrence in the business sector. Gold, silver, and oil are among the commodities that many traders buy and sell, and an increasing number of brokers are offering their services online to make this process as simple as possible. ICICI Direct offers gratis commodity trading.
Other Costs for ICICI Direct
In addition, investors should be mindful of the following brokerage fees:
The minimum brokerage fee charged by ICICI Direct per trade is Rs. 35.
ICICI Direct levies a transaction fee equal to 0.00280 percent of Total Turnover.
The Securities and Exchange Board of India (SEBI) supervises the country’s stock and commodity markets. SEBI Fees for Turnover. It guarantees that all investors are treated equally and assesses a fixed cost for each transaction. The sebi turnover fee of 0.002 percent is applied to the whole turnover. Direct ICICI
Stamp duty rates vary by state and asset type.
The 18 percent GST applies to commissions and processing costs (Goods and Services Tax).
Tax: ICICI Direct levies 0.0128 percentage points of gross revenue as STT (Securities transaction tax).
Call and transaction fees may range between Rs. 20 and Rs. 50, depending on the broker. After the first twenty free calls made every month, ICICI Direct charges Rs 25 per call and trade.
Conclusion of the ICICI Direct Review
ICICI Direct is the optimal option for high-volume traders for a number of reasons: This brokerage business has a strong predilection for high-volume traders, which is indisputable.
When beginning out in trading, ICICI Direct and HDFC Securities may not be the greatest choices. In comparison, customer service response times are around average, although there is always potential for improvement, particularly in the mobile app space.
1.Ques: Is the ICICI Prudential Mutual Fund an Appropriate Investment?
Ans: The ICICI Prudential Mutual Fund is unquestionably an excellent investing opportunity. A prominent fund business offers direct mutual fund services. By investing directly, you can avoid paying commissions and other expenses. These fees and commissions can accumulate rapidly over time.
2.Ques: What is the value of a VTC order?
Ans: If an order remains unfulfilled, there is no longer a need to repeatedly log in and place identical orders. The remaining order would be sent to the exchange each morning by ICICI directly.
3.Ques: What time of day can I utilize ICICI Direct to submit an online IPO application?
Ans: The website of ICICI Direct allows consumers to place orders for IPO shares at any time (24/7) throughout the bidding period.
4.Ques: Why is the cost of ICICI direct brokerage so high?
Ans: A substantial brokerage fee is charged by ICICI Direct. By subscribing to the premium or prepaid brokerage programmes offered by ICICI Direct, your brokerage fees will be reduced. For novice traders, commissions may be prohibitively expensive.
5.Ques: What is ICICI Direct’s pricing limit?
Ans: A Limit Price order is made in order to buy or sell shares at a specified price or better. Therefore, for a buy order, a lower price is better to a higher price, and vice versa. You must specify a maximum and minimum price for buy and sell orders, accordingly. If the order is to buy, the price will be as specified, but if it is to sell, it will be raised.