Comprehensive Study about HDFC Securities Limited’s Products and Service, Key Features, Brokerage Charges and Other Benefits

HDFC Securities Limited is a subsidiary of a top-notch private sector bank HDFC and has been into existence since last two decades. The company is named as one of the topmost full-service stockbrokers of India and has its headquarter in Mumbai with more than 270 offices and branches across the country. Known for its comprehensive services to the variety of the clients and professional traders with the online as well as the offline trading services, HDFC Securities Limited offers a wide range of stockbroking services along with the distribution of financial products. The customers of this broking house can trade through BSE, NSE, IRDA, PFRDA, AMFI and MCX and have a benefit of trading and investing with an award-winning broking house.  

In this comprehensive review article, we will highlight exclusively to our readers that will serve as their complete manual and will allow you to study the products and services offered by HDFC Securities Limited from its origin to the current status including the brokerage and other charges they charge for trading and its related activities, what are the advantages and disadvantages of investing and trading with this leading stockbroking firm, what range of other products and services they offer apart from the stockbroking service and other key information. 

The History of HDFC Securities Limited

Incorporated in 2000, HDFC Securities Limited initially was a joint venture among HDFC Bank Limited, HDFC Limited and Indocean eSecurities Holdings Limited. Currently, a subsidiary of HDFC Bank, HDFC Securities Limited offers trading and investment through the various class of assets including equity, futures and options, mutual fund, insurance, fixed deposits, IPOs, bonds, currency, NCDs, Exchange Traded Funds (ETFs) and National Pension System. Due to the 3-in-1 account facility, its clients enjoy banking, Demat and trading service all at one place and has a customer base of more than 2 million which includes the majority of the professional and active traders. Their trading platforms are considered among the best platforms that give seamless and quick trading experience to their clients. To safeguard client’s money lying with them, they use high-end technologies and encrypted order placements and execution one of which is called 128-bit encryption technology. It is one of the largest Depository Participant of NSDL and CDSL.  

They are one of the pioneers of launching SIPs in Equity and ETFs through their DIYSIP tool. Similarly, they are one of the first broking companies to start a mobile trading app for equity trading. In 2012 they started offering Deep ORS which a portfolio tracker tool through which investors and traders can trade from within their portfolio itself. In 2018, they have started virtual assistance services through ‘Arya’ that provides investment-related answers to the queries raised by various visitors of their website. 

Talking about the achievements and awards, HDFC Securities Limited had been a pioneer as the e-brokerage services provider since 2010. It has won many Best e-brokerage House awards and had been entitled as the largest e-brokerage house by BSE-Dun and Bradstreet. In 2014, it received two awards one from Zee Business as India’s Best Market Analyst Award 2014 and another from The Asian Banker as the Best Financial Markets Technology Implementation of the Year. It had also been a winner in the Retail Broking category in 2017. It has also won the Most Ethical Company award where investors safety and security is considered as the ultimate vision. The high-speed technologies, customer safety and the best research and advisory services are the assets of this company. Not only that, but the company also offer various types of loans such as home loans, education loans, personal loans, auto loans and loan against shares.  

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

Brokerage and Other Charges

Equity:

Minimum Brokerage per order
(subject to a ceiling of 2.5% of total traded value)
ResidentNRI
Applicable for both Buy & Sell ordersRs.25/-Rs.25/-

Delivery Based Trades:

BrokerageResident Indians – 0.50% or min Rs.25/- or ceiling of 2.5% on transaction value (Both Buy & Sell)
For NRI’s – Brokerage 0.75% or min Rs. 25 or ceiling of 2.5% on transaction value (Both Buy & Sell)
Brokerage scrips less than Rs.10 per shareThe minimum brokerage of Rs. 0.05/- per unit will be charged. Brokerage will be charged within the limits prescribed by SEBI / Exchanges. (Both Buy & Sell)
GST18.00% on Brokerage (Effective 1st July 2017)
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Securities Transaction Tax (STT)0.1% of the transaction value (Both Buy & Sell) (Effective from 1st July 2012)
STT on sale of a unit of an Equity Oriented Fund is 0.001% (Effective from 1st June 2013)
Stamp Duty0.01% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Square-Off Trades Cash & Carry Scrips:

Brokerage0.10% or min Rs.25/- or ceiling of 2.5% on transaction value (Both Buy & Sell)
Brokerage scrips less than Rs.10 per shareThe minimum brokerage of Rs. 0.05/- per unit will be charged. Brokerage will be charged within the limits prescribed by SEBI / Exchanges. (Both Buy & Sell)
GST18.00% on Brokerage (Effective 1st July 2017)
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Securities Transaction Tax (STT)0.025% of the transaction value (On Sell transaction)
Stamp Duty0.002% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Square-Off Trades Cash & Carry Scrips:

Brokerage0.05% or min Rs.25/- or ceiling of 2.5% on transaction value (Both Buy & Sell)
Brokerage scrips less than Rs.10 per shareThe minimum brokerage of Rs. 0.05/- per unit will be charged. Brokerage will be charged within the limits prescribed by SEBI / Exchanges. (Both Buy & Sell)
GST18.00% on Brokerage (Effective 1st July 2017 )
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Securities Transaction Tax (STT)0.025% of the transaction value (On Sell transaction)
Stamp Duty0.002% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Derivatives:

Future Market:

Non-Square Off (Carry Forward) Trades: 

BrokerageResident Indians – 0.05% or min Rs.25/- or ceiling of 2.5% of the transaction value (Both Buy & Sell)
For NRI’s – 0.05% or min Rs.25/- or ceiling of 2.5% of the transaction value (Both Buy & Sell)
GST18.00% on Brokerage (Effective 1st July 2017 )
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Securities Transaction Tax (STT)0.01% of the transaction value (On Sell transaction) (Effective from 1st June 2013)
Stamp Duty0.002% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Square-Off Trades:

BrokerageResident Indians – 0.025% or min Rs.25/- or ceiling of 2.5% of transaction value (Both Buy & Sell)
For NRI’s – 0.025% or min Rs.25/- or ceiling of 2.5% of the transaction value (Both Buy & Sell)
GST18.00% on Brokerage (Effective 1st July 2017 )
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Securities Transaction Tax (STT)0.01% of the transaction value (On Sell transaction) (Effective from 1st June 2013)
Stamp Duty0.002% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Option Market:

BrokerageResident Indians – Higher of 1% of the premium amount or Rs.100 per lot (Both Buy & Sell)

For NRI’s – Higher of 1% of the premium amount or Rs.100 per lot (Both Buy & Sell)
GST18.00% on Brokerage (Effective 1st July 2017)
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Securities Transaction Tax (STT)Sell: 0.05% on Premium,
On Exercise: 0.125% on Intrinsic Value- the difference between closing price & settlement price
Stamp Duty0.002% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Currency:

Currency FuturesThe brokerage of Rs. 23/- per Contract on carrying forward trades & Rs. 12/- each side on square up of trades (statutory & other charges to be levied separately).
Currency OptionsThe brokerage of Rs. 20/- per Contract on carrying forward trades & Rs. 10/- each side on square up of trades (statutory & other charges to be levied separately).
GST18.00% on Brokerage (Effective 1st July 2017)
(Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017)
Stamp Duty0.002% on turnover
SEBI Turnover Tax0.00015% (exclusive of service tax) on turnover (Effective from 1st June 2014) Plus GST 18%
(Old rate of 0.0001% on turnover affected up to 31st May 2014)

Commodity:

Future Market:

Non-Square Off (Carry Forward) Trades:

Brokerage0.025% or min Rs.20/- per order.
GST18.00% on Brokerage (Effective 1st July 2017) (Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017
Commodities Transaction Tax (CTT)0.01% of the transaction value (On Sell transaction) (Effective from 1st July 2013)
Stamp Duty0.002 % (Rs. 2.00 per lac of futures turnover) payable by the buyer
SEBI Turnover Tax0.00010% on turnover (Rs.10 per crore) for dealing in Commodity derivatives
0.00001% on turnover (Rs.1 per crore) for dealing in Agricultural Commodity derivatives (Effective from 1st April 2019) Plus GST 18%

Square-Off Trades:

Brokerage0.020% or min Rs.20/- per order.
GST18.00% on Brokerage (Effective 1st July 2017) (Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017
Commodities Transaction Tax (CTT)0.01% of the transaction value (On Sell transaction) (Effective from 1st July 2013)
Stamp Duty0.002 % (Rs. 2.00 per lac of futures turnover) payable by the buyer
SEBI Turnover Tax0.00010% on turnover (Rs.10 per crore) for dealing in Commodity derivatives0.00001% on turnover (Rs.1 per crore) for dealing in Agricultural Commodity derivatives (Effective from 1st April 2019) Plus GST 18%

Option Market:

BrokerageRs.100/- per lot.
GST18.00% on Brokerage (Effective 1st July 2017) (Old rates 15.00% Service Tax on Brokerage effective 1st June 2016 – 30th June 2017
Commodities Transaction Tax (CTT)Seller: 0.05% on Option Premium
Purchaser: 0.0001% on Settlement Price on exercise
(Effective from 1st April 2018)
Stamp Duty0.003 % (Rs. 3.00 per lac of premium turnover) payable by the buyer
SEBI Turnover Tax0.00010% on turnover (Rs.10 per crore) for dealing in Commodity derivatives 0.00001% on turnover (Rs.1 per crore) for dealing in Agricultural Commodity derivatives (Effective from 1st April 2019) Plus GST 18%

Margin / Exposure

SegmentMargin
Equity DeliveryUp to 8x
Equity IntradayUp to 14x
Equity FuturesUp to 7x
Equity OptionsUp to 8x
Currency FuturesUp to 7x
Currency OptionsUp to 5x
CommoditiesUp to 6x

Main Features of Trading and Investing with HDFC Securities Limited

  • HDFC Securities Limited is known for its services to the retail as well as institutional investors and is named amongst the largest full-service retail brokers of India.
  • Safety and Security of their investors is their preliminary concern and hence, it was also awarded as the Most Ethical Company. The company has also won many awards as the Best eBrokerage House.
  • It provides all of the majority products and services related to trading and investment along with banking and insurance facilities.
  • They are ranked among the best online trading platform providers for seamless and quick transactions.
  • Their world-class research and the advisory team provide valuable insights into the fundamentals and technicalities of the stock market. 

Products and Services Offered by HDFC Securities Limited

Below are the explanations of its products and services and their key features.

Products: The large full-service broking firm provides various products that include trading in equity, derivative, commodity, currency, mutual funds, bonds, FDs, NCD, NPS and SIP. They also offer financial distribution products and insurance-related products to its customers.

Services: The services offered by this company include Demat, Intraday, Trading, IPO, Portfolio Management Services as well as stock tips and many more. 

Research: The Research and Advisory service by this company is offered by way of fundamental reports, monthly reports, stock recommendations, IPO reports as well as offline advisory and in-person assistance for investors and traders. They also include Basket ideas under for Smallcase portfolio recommendations.

Pro Terminal: With a view to offering trading flexibility, the company has created this software that enables its traders to perform detailed analysis and research about the trends and fundamentals of the stock market as it provides real-time information from across many world-class sources.  

Blink: This is a trading platform known for its high-seed technology with which traders can trade in just a single click as well as it provides real-time information and a facility to make effective investment decisions.

Mobile App: Fast and easy trading, portfolio management, live market information, interactive demos and real-time updates are some of the features of the mobile trading app for their customers seamless trading experience.

Basket Investing: This is based on Smallcase technology under which they group certain company stocks based on a theme and prepare a small portfolio to invest. Such portfolios are typically low-cost, well-diversified and consider the long-term investment.

Voice-Enabled Investing: This is India’s first virtual assistant ‘Arya’ based on IoT devices to offer services and assistance with the investor’s personalized needs through the voice commands on Google Assistant, Google Home and Amazon Alexa.

Digify: Digify by HDFC Securities Limited is an online platform to invest in the Mutual Funds. With this platform, any KYC compliant investor can invest directly in the mutual funds hassle-free along with the features such as management of the portfolio, portfolio tracking and withdrawal of money from anywhere anytime. 

DigiGold: This facility offers to buy and sell the Gold online through HDFC Securities Limited where investors can keep it safe in the digital locker and they do not need to physically buy or sell the gold. 

Global Investing:  With this product, they facilitate their clients to enable them to invest directly in the US Market with frictionless investing experience, in-depth research and analysis services through a digital platform that is hi-tech and reliable. 

Pros and Cons

The high-quality services justify all the cons of this stockbroking firm as it is very natural to have some flaws and looking into the advantages of trading and investing with them supports the fact why anyone should avail the 3-in-1 facility with them and many more.

Pros:

  • Their robust technology-driven trading platforms provide seamless trading experience to their investors. These platforms are equipped with features such as charting, tracking of a portfolio, market watchlist, real-time information and trading tips. 
  • Since they provide 3-in-1 account facility, the transfer of funds is done in a much easier way than with any other stockbroker.
  • The research and advisory services are quite advanced as compared to other full-service brokers as they have used the latest technologies and tools to provide concrete suggestions as well as comprehensive study reports to their investors.
  • They prefer investor’s safety and security over anything else and hence investor’s money is safe with them.
  • Their products and advanced tools with real-time updates allow their customers to effectively make decisions based on their analysis of the current market trends.
  • They have launched India’s first Voice-Enabled Investing assistance and not only that, but they also offer offline advisory and in-person consultation to their clients.
  • They have a huge presence with multiple locations and that allows investors to resolve their queries in-person due to the availability of their offices in the nearby areas.
  • Their digital platforms Digify and DigiGold allow customers to invest in mutual funds and gold respectively online hassle-free.
  • Apart from trading, they also offer insurance products, various loans and many other financial distribution products which prove for anyone as a one-stop solution for all the financial and investment-related needs.

Cons:

  • Their brokerage charges are based on a certain percentage on a transaction and hence they are considered quite costly.
  • They have a minimum cap to charge for the trading activities and hence if an investor trades for less than the minimum quantity, he tends to lose money due to the application of minimum trading charges.
  • Under research and advisory service, they do not provide a daily stock market review.