Reviewing the Edelweiss Stockbroker including Brokerage Charges, Products and Services Offered and Pros and Cons

Edelweiss Broking Limited is a part of Edelweiss Group – one of the leading financial services providing firms based out of Mumbai. The group was incorporated in 1995 and Edelweiss Broking Limited was started in 2008 and today they have more than 1 million clients with them. Like any other startup, the group has also seen many difficult times especially during the first 3 years of their incorporation however, the founders Rashesh Shah and Venkatachalam Ramaswamy kept their hopes up all the time and believed that the time will come and they will be able to recover. Today, the group has been serving a variety of clients for their financial needs and not only that they also provide investment advisory services with high-level research and analysis and wealth management services along with their full-service stockbroking business. They also enjoy a network base with a large number of sub-brokers and the company is well-known for their quality services to the clients and for creating a better organization for their employees.  

In this review article, we will highlight exclusively to our readers that will serve as their guiding manual and will allow them to study the Edelweiss Broking Limited from start to finish. The topics covered here include an inspiring story of Rashesh Shah – the co-founder, the brokerage and other charges they charge for trading and investment with them, what are the advantages and disadvantages of investing and trading with this retail stock-broking firm, what range of other products and services they offer apart from the stockbroking service and so on.  

The Success Story of How Rashesh Shah and Venkatachalam Started Edelweiss

The two colleagues working with ICICI Bank had a thought of starting their own business in the financial services which they executed in 1995 by establishing Edelweiss Group. Edelweiss is a flower that is known for growing after facing the hard-times and the similar has happened to the company as well. Rashesh Shah, son of a typical Gujarati Businessman having his own stationery shop, studied B.Sc. with statistics, a diploma from the Indian Institute of Foreign Trade and then MBA from the IIM Ahmedabad. From his job at ICICI bank as an analyst he leveraged his skills into reading company balance sheets, their profitability and factors driving profits. He also happened to meet many large corporate players and CEOs from whom he got inspired about entrepreneurship. He managed to convince his father to give their house on a mortgage and got some fund to start Edelweiss. 

But when they started their company market started showing a downfall and the odds were just not facing them. Again from 2001 to 2003 were not the years favouring Shah’s fate and they somehow managed to continue with the same spirit and firmly believed that those who fall down must rise up. In 2003 the company started to pick up and since then they have never stopped. They not only recovered from the bad times but also kept on adding new products, features and services over a period of time and has made its own name in the financial services industry. Shah always remembers the invaluable tip received from the CEO of Infosys Mr Narayan Murthi, that goes never give equity cheap and build an organization that shares benefits with employees. To add to that, Edelweiss was the first in India to start a concept of Employee Stock Option Plans that would serve as a cost-cutting measurement in times of market crash and a boon when the markets are rising. 

The group provides all kinds of financial services along with investment advisory from their highly skilled team of experts and analysts. They have a presence across BSE, NSE, NCDEX, MCX and AMFI and have more than 475 offices across 200 locations in India. The stockbroking company offers trading and services in multiple classes of assets such as equity, derivatives, mutual funds, currency, commodities, ETFs, debt and IPO. They are registered with AMFI as a mutual fund distributor. They also have won awards as the Best Broker many recognized bodies setting the quality standard for many other retail full-service stockbrokers. Despite being a full-service broker, Edelweiss also provides an option to select the discount brokerage plan to its investors and traders. They also provide PMS services and other tools where investors are advised with a set of portfolios of stocks customized based on their risk-taking ability, the period of investment and purpose of investment. 

List of Charges: Brokerage and Transaction Charges, Account Opening Charges and Other Related Charges

Brokerage and Other Charges

Brokerage ChargesLiteElite
Equity DeliveryRs. 10 per executed order0.30%
Equity IntradayRs. 10 per executed order0.03%
Equity FuturesRs. 10 per executed order0.03%
Equity OptionsRs. 10 per executed orderRs. 75 per lot
Currency FuturesRs. 10 per executed order0.02%
Currency OptionsRs. 10 per executed orderRs. 20 per lot
Other Charges
Margin / FundingCash + Stock Margin (50% Cash / 50% Stock)
For F&O, 0.08% per day in case 50% cash is maintained
Cash + Stock Margin
For F&O, no charge if traded with full margin
Delayed Payment Interest0.08%/day0.06%/day
Switching Charges (only 2 switches allowed)0 (when switching to Elite)Rs. 2500 (When Switching to Lite)
Research ToolRs. 50 / monthFree
WhatsApp NotificationsRs. 50 / monthFree
Live News and DetailsRs. 50 / monthFree
Portfolio OptimizerRs. 100 / RequestFree
InvestologyRs. 100 / RequestFree
Manual Charges
Call & Trade (Advisory, Trading)Rs. 20 / callFree
RM / AdvisorNot AvailableFree
Special Situation Trade AssistanceNot AvailableFree
Ancillary Charges
DP AMC1st Year free
Rs. 300 per year subsequently
1st Year free
Rs. 500 per year subsequently
DP Fees (Transfer Out/Sell/Inter-settlement fees)Rs. 20 per ISIN0.02% of value or Rs. 20 whichever is higher within Edelweiss
OR
0.03% of value or Rs. 20 outside Edelweiss
Pay-inRs. 10 / transferFree
PayoutFreeFree
Physical CML Request1st Free / Additional Rs. 120Free
Cheque PaymentRs. 500 / chequeFree
Pledge ChargesRs. 60 / pledgeFree
Physical Statement Charges (Ledgers, PNL, Tax etc.)Rs. 50 / statement Free

Margin / Exposure

SegmentMargin
Equity DeliveryUp to 10x
Equity IntradayUp to 40x
Equity Future40x
Equity OptionsNil
Currency Future1.5x
Currency OptionsNil
Commodity FutureUp to 6x

Features of Trading and Investing with Edelweiss Broking Limited

  • Their retail broking products and services cover almost all asset classes such as equity, mutual fund, derivatives, commodities, debt and IPO. 
  • The high-speed trading platform enables their investors to trade and invest comfortably from anywhere and everywhere.
  • The company is part of the Edelweiss group which is a leading financial service provider and hence investors can get the benefit of additional products and services offered by this group.
  • The stock advisory experts serve their clients with valuable recommendations and tips on which clients can rely completely and it has hardly disappointed any investor. 
  • They always target to beat the industry benchmark and reports have shown an upward trend almost every time.
  • They provide online and offline assistance to their clients and assistance over call or in-person is also available which much other online broking firm lack in particular. 
  • The company is customer-centric as in they consider they will grow only if their customers grow and hence, they help provide concrete suggestions and solutions to clients along with personalized portfolio management service.
  • They have launched trading platforms based on the types of customers viz-a-viz active trader or regular investor, etc.

Products, Services, Software and Features

This diversified financial service conglomerate offers an amazing range of products and services that will fulfil every need of an investor and a trader. 

Products: The range of products this company offers includes trading in Equity, Commodity, Currency, Options, Futures, Mutual Funds and Insurance. The company emphasizes on customer satisfaction and hence, they thrive to achieve their financial goals together with their clients. They offer customized products to meet every investor’s needs.

Services: The services offered by the retail full-service broker contains Demat, Trading, Intraday, IPO, Stock Tips, Robo Advisory, educational training about trading and Portfolio Management Services. They are well-known for their quality services to their customers and they build and maintain good relations with their customers.

Research and Advisory: With their detailed analysis about the company stocks, they provide IPO research reports, top picks, fundamental and analytical reports, daily market news and monthly study reports. They also offer assistance over a call and in-person assistance to their clients who are not comfortable with full online trading.

Edelweiss.in: This web-based platform is designed considering the regular type of investors and traders who want a simplified trading experience which is quick and comfortable. 

Terminal X3: This is a desktop-based trading platform that provides high-speed trading experience along with charting and analytical tools featured in it. The platform is supported on almost every browser and it provides real-time updates and customized advisory service.

Mobile Trader App: Rated 4.2 stars, this app provides the next-generation experience of trading and investing with high speed anywhere anytime. 

Investology: It is a page where investors can gain insights into the market terminologies and its trends by reading value-based articles written by their panel of experts in the stock-market. 

Smallcase: It is a thematic portfolio service offered by Edelweiss to their clients which are based on a specific theme. They create a small portfolio of 20 stocks based on a theme that can be based on the government’s new initiative of digitization or sectoral shifts like banking. 

Guided Investing: Under this, they offer Portfolio Organizer, Smallcase and Guided Portfolio Services. Portfolio Organizer offers consolidation of portfolios to track the performance of all the portfolios under one roof. The guided portfolio helps create portfolios based on client’s requirements and financial goals.  

Benefits and Drawbacks

Below is a list of pros and cons of investing and trading with Edelweiss Broking Limited.

Pros: 

  • The brokerage plan Lite provides flat brokerage rate cheaper than the discount broking firms and it is incredible to receive such offer from a retail full-service broking firm. 
  • They provide the latest technology-based trading platforms and their app is rated 4.2 stars with its quick and easy to use features.
  • The well-researched fundamental and analytical reports are their invaluable assets and their recommendations have benefitted millions of customers.
  • The Guided Investing tool helps new investors to invest their money with their personalized set of portfolios that considers individual financial goals.
  • Investology learning page provides learning on the stock market fundamentals to the beginners and new investors. 
  • They provide online and offline advisory services which mean clients can trade through calls as well as they can be provided with the relationship managers to have a one-to-one consultation.
  • Apart from the stockbroking business, since they have their own financial services providing company, clients can benefit availing home loans, wealth management, investment advisory, personal finance and many other financial instruments related services just from one place.
  • They are registered AMFI mutual fund distributor.

Cons:

  • They do not offer 3-in-1, trading, Demat and bank account service.
  • Few services like call and trade are chargeable at an extra cost. 
  • Their brokerage charges under the Elite plan are quite high compared to other stockbrokers.